Summary of What This Blog Covers
- Estimate profit to plan your tax strategy.
- Accelerate deductions and prepay expenses.
- Max out retirement contributions to reduce taxable income.
- Consider switching to an S Corp for big tax savings.
Let’s kick things off with a reality check:
If you wait until April to think about your taxes, you’re already too late.
That’s like trying to lose weight by stepping on the scale. The damage is done, friend. You can’t make adjustments to last year in this one (at least, not the kind that save you real money).
And yet, this is the move most young entrepreneurs make:
Launch a business. Crush a few goals. Pull in more revenue than last year.
Then wait. Shrug. File in April. Pay a scary number and wonder if it could’ve been less.
Here’s the good news: there’s still time.
Year-end is when the best tax moves happen before the numbers are locked in and filed with a bow on top for the IRS. It’s when proactive business owners build leverage, save strategically, and use the tax code to their advantage instead of letting it just happen to them.
So if you’re a young entrepreneur wondering, “What can I actually do now to lower my tax bill?”, this one’s for you.
Let’s break down the top 7 tax planning moves you can still make before the year ends: each one designed to sharpen your strategy, reduce your bill, and leave you feeling a lot more powerful come April.
1. Project Your Profit: Stop Flying Blind
Let me guess: You know how much you’ve made this year… kind of.
You’ve got a Stripe dashboard, maybe a QuickBooks account, and receipts floating around in your inbox labeled “Save This for Taxes.”
But if I asked you your projected net income, would you answer with a number or a sound that resembles a shrug?
Here’s the thing: you can’t plan tax moves unless you know what you’re planning for. You need a baseline to make smart calls.
Grab your income. Subtract your expenses. Estimate how the rest of the year will go. This doesn’t need to be a perfect forecast, it just needs to be close enough to guide your strategy.
Once you know your number, you can start asking real questions:
- Am I creeping into a higher tax bracket?
- Should I defer income to next year?
- Do I need to accelerate deductions now?
If your business had a breakthrough year, you owe it to yourself to protect that momentum not lose it to poor planning.
Mind-shocker moment: You can’t fix your tax bill if you don’t understand what’s creating it. Guesswork is expensive. Strategy is profitable.
2. Bunch or Accelerate Deductions: Timing Isn’t Just for Comedy
Here’s a move most people overlook: controlling the clock.
Your expenses don’t need to be perfectly balanced across years. In fact, you can tip the scales in your favor.
Let’s say you’re having a high-income year. Instead of waiting until January to make business purchases or donations, do it now in this tax year.
That might mean:
- Paying for a year’s worth of software upfront
- Stocking up on marketing materials or client gifts
- Making charitable contributions you were planning anyway
- Renewing memberships or certifications
This technique is called bunching, and it works because it brings deductions into a higher-tax year where they matter more.
Why? Because $1,000 of deductions when you’re in the 32% tax bracket saves you $320. That same $1,000 when you’re in the 12% bracket? Only $120.
Same action. Very different outcome.
Aha moment: It’s not just what you deduct, it’s when you deduct it. Timing can multiply the value.
3. Max Out Retirement Contributions: Pay Future You, Not the IRS
One of the most overlooked (and underrated) tax planning tools? Retirement.
I know. Retirement sounds like a later problem. You’re still trying to hit your next revenue goal, build your brand, and maybe take a real weekend off.
But if you’re self-employed and not taking advantage of retirement contributions, you’re doing two things:
- Overpaying taxes now
- Making future-you work harder later
Here’s what you can use:
- Solo 401(k): Contribute as both employee and employer. Total limit: $69,000 in 2025.
- SEP IRA: 25% of your compensation, also up to $69,000.
- Traditional IRA: Up to $7,000 ($8,000 if you’re 50+), depending on income.
All of these options reduce your taxable income. That means fewer dollars taxed now, and more building toward your long-term freedom.
Think of it this way: Would you rather send that $10K to the IRS… or keep it in your name, growing year after year?
Quick story: A solo marketing consultant came to us last year. She made $150K and hadn’t contributed to anything. We helped her drop $30K into a Solo 401(k) and shaved over $7K off her tax bill. And she still had time to max out a Roth IRA.
4. Prepay Business Expenses: Get Credit Now, Use Later
Need a new laptop? Buying software licenses? Planning a training or coaching program in Q1?
If you’re a cash-basis taxpayer (which most small businesses are), paying for those expenses before December 31 can get you the deduction this year.
This is one of the fastest ways to bring your taxable income down legally and strategically, just make sure you’re buying what you actually need.
Not-so-pro tip: Don’t buy a $5,000 camera “for the write-off” if it’s going to sit in the box until April. That’s not strategy, that’s retail therapy disguised as business.
Aha moment: Smart tax planning is not about spending more. It’s about spending smarter.
5. Review Your Entity Setup: Is It Time to Switch to an S Corp?
Okay, real talk.
If you’re still a default LLC and making over $80,000 in net profit, you may be burning money without knowing it.
The fix? Elect to be taxed as an S Corp.
Here’s why it works:
- You pay yourself a reasonable salary, which is subject to payroll tax
- You take the rest of your profit as distributions, which are not
- You avoid paying self-employment tax (15.3%) on your entire income
This move alone can save business owners $8K to $15K a year or more.
But don’t wing it. Electing S Corp status comes with extra rules, payroll requirements, and filings.
This is where your Austin tax accountant or certified public accountant near you helps you run the numbers and set it up correctly, with no guesswork.
Client example: A fitness coach we worked with was earning $120K. As an LLC, she was paying self-employment tax on all of it. After we switched her to an S Corp, gave her a $60K salary, and took $60K as distributions, she saved $9,300 her first year.
6. Harvest Tax Losses: Make the IRS Share Your Pain
Did some of your investments lose value this year? Good news, you can still win with them.
It’s called tax-loss harvesting. You sell those underperformers before year-end and use the losses to offset:
- Capital gains from other investments
- Up to $3,000 of ordinary income
- Future gains via carryforward
That’s like taking lemons and turning them into a tax-saving smoothie.
Just watch out for the wash sale rule: You can’t repurchase the same or “substantially identical” security within 30 days or the loss gets disqualified.
Mini tip: Crypto currently isn’t subject to the wash sale rule (yet), which makes it one of the only places the IRS gives you a break.
7. Make Strategic Charitable Contributions: Do Good, Save Smart
Thinking of giving to a nonprofit? Excellent. Now let’s make sure the tax strategy matches the generosity.
Here’s how to do it right:
- Make sure your donation is to a qualified 501(c)(3)
- Get the donation in by December 31
- Itemize only if your total deductions exceed the standard deduction
- Consider donor-advised funds for larger gifts you want to distribute over time
Big income year? Bunch two years’ worth of giving into one. That can tip the scales and let you itemize again.
And yes, charitable giving is deductible but only if you do it the right way.
Bonus: Foreign Accounts? Crypto? Watch for FBAR
If you’ve had more than $10,000 in foreign accounts even if it was split across platforms like Wise, Payoneer, or even overseas digital wallets, you might be required to file an FBAR (Foreign Bank Account Report).
The penalty for not filing? Up to $10,000 per violation.
This isn’t something TurboTax will always catch. A taxation accountant or enrolled agent knows how to handle it properly and keep you in the clear.
Wrap-Up: These Moves Aren’t Just About Saving Taxes, They’re About Building Smarter
You didn’t start a business to overpay the IRS. You started it to grow, to create, to build something that fuels your future.
So make sure your tax strategy reflects that same energy.
Because every one of these seven moves doesn’t just save you money now. They lay the groundwork for smarter decision-making, stronger finances, and more control in the months (and years) ahead.
Need a Strategic Year-End Tax Checkup? Let’s Talk.
At Insogna, we don’t just file your taxes. We help you plan, project, and protect your profit.
We’re here to walk you through every move from your entity structure to your deductions to whether that crypto loss can actually work in your favor.
Let us run your year-end tax review so you leave nothing on the table.
No pressure. Just clarity. And a whole lot more confidence when April rolls around.
Book your 1-on-1 strategy call now.
Frequently Asked Questions
1. What can I do before year-end to lower my business taxes?
Prepay expenses, max out a Solo 401(k), bunch deductions, or switch to an S Corp if you’re earning over $80K. The earlier you act, the more you save.
2. Is switching to an S Corp worth it?
If you’re netting $80K+, yes. It can save thousands in self-employment tax but timing matters. You need to act before the year closes.
3. What is tax-loss harvesting?
It’s selling losing investments to offset gains or reduce taxable income. If you have crypto or stocks, this can be a smart move before Dec 31.
4. I made more money this year. What should I do now?
Estimate your profit, accelerate deductions, and talk to a CPA near you about retirement, entity structure, and strategy.
5. Can I deduct charitable donations?
Yes, if it’s a qualified charity and done before Dec 31. Bunch donations or use donor-advised funds to maximize impact.