Summary of What This Blog Covers
- Prepay expenses and defer income to manage taxable income
- Elect S Corp status to reduce self-employment tax
- Max out retirement contributions for big savings
- Use bonus depreciation and meet your CPA before year-end
Let’s start with this question:
Are you “tax planning” or just “hoping for the best”?
Because if your plan is to wait until April, open your QuickBooks file for the first time in months, and whisper, “Please don’t be bad,” then we need to talk. Seriously.
And no, this isn’t another “did you track your mileage?” list. This is real-world, cash-saving, timing-is-everything strategy for entrepreneurs who are running actual businesses. Ones with clients, cash flow, and complexity. Maybe that’s you.
You’re not a beginner anymore. You’ve figured out how to generate revenue. Now it’s time to keep more of it.
So if you’re wondering what smart founders are doing right now, before the year ends, to make tax season less painful and more profitable this is it.
Here are the 7 tax moves you can still make before the ball drops, each one with a clear move, a real-life insight, and the kind of “why didn’t I know this earlier?” moment that saves you money and makes you smarter.
Let’s dive in.
1. Accelerate Expenses (And No, That Doesn’t Mean a Shopping Spree)
Here’s the move: If you’re a cash-basis taxpayer (and most entrepreneurs are), you can deduct business expenses when you pay them, not when they’re incurred or used.
So if you know you’re going to:
- Renew your annual software
- Buy a new laptop
- Invest in a marketing consultant
- Prepay for office rent or insurance
Do it before December 31, and you can reduce your taxable income for this year.
Real talk: You’re not “gaming” the system. You’re simply using the system the way it was designed for proactive business owners. The IRS allows this. Most people just don’t know it’s allowed.
But here’s the catch: Don’t spend money just to get a deduction. That’s like eating a second dinner just because dessert is 50% off. Spend strategically. Only accelerate what you already planned to purchase.
Mini scenario: One client prepaid for $9,000 of software in December that she would’ve paid for monthly starting in January. That $9K shaved off nearly $2,000 from her tax bill. Same software. Better timing.
2. Defer Income (If It Makes Sense for Your Cash Flow)
Here’s the move: If December is turning into your biggest revenue month, and you’re bumping up against a higher tax bracket, consider deferring income into next year.
How?
- Send the invoice in January instead of December.
- Collect payment after the new year.
- Delay launching that new offer until Q1.
Why it matters: You only pay tax on income received in this year. If the cash hasn’t hit your account by December 31, it’s not taxed yet.
But be careful: Only defer if your cash flow can handle it. Deferring income and then scrambling to make payroll in January? That’s a hard no. Make sure your business can float the delay without hurting operations.
Mini story: A consultant we work with delayed a $25,000 invoice by just four days from December 28 to January 2. That one shift saved her $5,700 in taxes. No brainer.
3. Elect S Corp Status (If You’re Making Six Figures and Still an LLC)
Here’s the move: If your business is structured as an LLC and you’re earning over $80,000 in net profit, it’s time to seriously consider electing S Corp status.
Why?
Because LLC income is hit with self-employment tax, 15.3% on everything.
But with an S Corp, you:
- Pay yourself a “reasonable salary” (subject to payroll taxes)
- Take the rest of your profit as distributions (not subject to SE tax)
Translation: S Corp owners don’t get taxed like everyone else and it’s totally legal.
Here’s the “aha” moment: One of our clients, a digital consultant making $120K in profit, switched to S Corp. Paid herself a $60K salary. Took the rest as distributions. Saved $9,000 in one year. Without changing her business model. Just her tax structure.
Pitfall: This isn’t something to DIY in a Google Doc. You’ll need payroll set up. You’ll need a proper salary analysis. You’ll need a certified public accountant who understands S Corps.
4. Max Out Retirement Contributions (And Actually Think Like a CEO)
Here’s the move: You can reduce your taxable income and build wealth for future-you by making contributions to:
- Solo 401(k) – Up to $69,000 total in 2025
- SEP IRA – 25% of your net business income, up to the same cap
- Traditional IRA – $7,000 if under 50
Why this works: Retirement contributions are tax-deductible. Meaning you get to keep more of your profit, just tucked away for your future self to thank you later.
But there’s nuance: Some plans (like Solo 401(k) employee contributions) must be made by December 31. Others (like SEP IRA contributions) can be made until you file. So talk to your Austin tax advisor now to know what deadlines apply.
Mini insight: One founder we worked with contributed $30,000 to her Solo 401(k). That dropped her tax bill by more than $7,500 and helped her feel like the grown-up CEO she already was.
5. Take Advantage of Bonus Depreciation (While You Still Can)
Here’s the move: Buy qualifying equipment and deduct a large portion (or all) of it in the year it was purchased and placed into service.
Think:
- Tech upgrades
- Studio gear
- Business-use vehicles
- Office furniture
The law: Bonus depreciation in 2025 lets you deduct 40% of the purchase price immediately. In 2026, it drops further to 20%. So if you’re planning to invest in equipment, tech, or qualified assets, this is your narrowing window to take advantage of a significant deduction before it phases out.
Real talk: If you’re already planning to make that big purchase in January, pulling the trigger in December could score you a huge deduction this year.
Pitfall: The equipment must be in service before year-end. Ordering it isn’t enough. That laptop sitting in a box? Doesn’t count.
Client insight: An Austin-based content creator bought $9K in podcast gear, depreciated 80%, and saved nearly $2,000 in taxes. She used it to launch two new streams of income. That’s strategic.
6. Clean Up Your Fixed Asset Schedule (And Ditch the Zombie Equipment)
Here’s the move: Your fixed asset schedule is a list of everything your business owns and depreciates which includes hardware, gear, furniture, etc.
If you haven’t looked at it in a while, it might still include:
- Broken tech you tossed two years ago
- Office furniture you donated
- Vehicles you sold
- Equipment that no longer exists
That means you’re still depreciating assets you don’t actually own which is a problem.
Why this matters:
- It makes your books inaccurate
- It inflates your expenses
- It creates audit risk
Aha moment: Cleaning this up now gives you cleaner books and removes unnecessary baggage before you file. And it shows the IRS you’ve got your act together.
7. Schedule a Year-End Meeting with Your CPA (Yes, Before January)
Here’s the move: Meet with your CPA near you in December not April.
Why? Because year-end meetings are where the real strategy happens. Your CPA can help you:
- Project your tax liability
- Adjust estimated payments
- Review your deductions
- Decide whether to accelerate or defer income
- Set up or fund retirement plans
- Flag multi-state or foreign account issues like FBAR filing
Real talk: Tax prep season is too late to change anything. Year-end is where the savings happen. Filing is just the scoreboard.
Client example: A client came to us in December. We ran projections, adjusted her Q4 strategy, and uncovered $11,000 in savings before she even filed.
Let’s Build Your Year-End Playbook (And Keep More of What You Earn)
You don’t need another tax season full of stress, spreadsheets, and “surprise” payments.
You need a game plan. You need clarity. You need to stop handing the IRS more money than necessary just because you didn’t act in time.
At Insogna, we help entrepreneurs create strategy-first tax plans that reduce stress and maximize profit. We’re not just form-fillers. We’re your outsourced tax strategy team and we know what works when the clock is ticking.
Don’t wait until Q1. Llet’s audit your year-end moves together.
Book your consultation today and start the new year with less panic and more power.