What Are the Top 7 Tax Moves Entrepreneurs Should Make Before December 31?
April isn’t when you fix your taxes — December is. These 7 moves are the buzzer-beaters that save real money and kill penalties.
Summary of What This Blog Covers
- Penalty-proof safe harbor
- Asset expensing choices
- Accountable plans, retirement, PTE taxes, timing, and book cleanup
1. Safe Harbor Tune-Up
Hit 100%/110% of last year’s tax (or 90% of this year) → zero underpayment penalties. Late-year W-4 bump backfills everything.
2. Section 179 vs Bonus Depreciation
Place assets in service by 12/31. §179 for immediate cash flow; bonus for bigger items (no dollar limit).
3. Adopt an Accountable Plan
Reimburse yourself tax-free for mileage, home office, health premiums, travel. One policy = thousands saved.
4. Max Retirement Funding
Solo 401(k) by 12/31, SEP by extension. Deferrals + profit-sharing = huge deduction.
5. State PTE Election & Payment
Many states require election + payment by 12/31 to claim the SALT cap workaround.
6. Income & Expense Timing
Delay invoices, accelerate purchases, prepay January expenses if it drops a bracket.
7. Clean Books
Reconcile AR/AP, count inventory, fix miscodings — turns “I think so” into audit-proof clarity.
Year-End Tax Sprint Checklist (copy-paste)
☐ Safe harbor gap closed (W-4 + estimate)
Section 179/bonus assets in service
☐ Accountable plan adopted
☐ Retirement funded (Solo 401(k) by 12/31)
☐ PTE election & payment made
☐ Invoices delayed / expenses accelerated
☐ Books reconciled & clean
Book Your Year-End Tax Sprint
Insogna’s Year-End Sprint gives you a one-page checklist, exact safe-harbor numbers, asset modeling, accountable-plan template, PTE calendar, and clean books — all before 12/31. Whether you searched “tax preparer near me,” “Austin Texas CPA,” or “year-end tax planning,” we turn December chaos into April calm.
Frequently Asked Questions
1) Can I still avoid penalties if I’m short right now?
Yes — late-year W-4 increase is treated as paid evenly all year. Pair with a small estimate and you’re safe.
2) §179 or bonus depreciation — which is better?
§179 for cash-flow control (dollar limit). Bonus for big-ticket items (no limit, 2024 still 60–100% depending on asset).
3) How fast can I set up an accountable plan?
One hour with a template. Reimbursements become tax-free instantly.
4) Can I fix underpayments late without draining cash?
Absolutely — W-4 bump + modest estimate often erases the entire penalty.
5) Do all states have PTE taxes?
No — we keep the 50-state calendar and make sure you don’t miss the deadline.