Bookkeeping

Summary of What This Blog Covers

• Collect all income documents, including 1099s and platform payouts, to ensure accurate reporting.
  
  
• Track and categorize business expenses to maximize deductions.
  
  
• Make quarterly estimated tax payments to avoid penalties.
  
  
• Review past returns and plan ahead with a CPA for a smarter tax strategy.

Let’s cut to it: you’ve built a business, you’ve weathered economic curveballs, managed late invoices, hired your first contractor, maybe even got an LLC in place. You’ve hustled. But then, out of nowhere, tax season taps you on the shoulder.

And suddenly it’s, “Where are those 1099s?” or “Did I really spend that much on ads?” or “Wait… was I supposed to make estimated payments last June?”

First of all, deep breath. You’re not alone. We’ve been in the tax trenches with entrepreneurs, creatives, e-commerce sellers, and consultants long enough to know exactly what this season looks like.

And here’s the good news: tax season doesn’t have to be a disaster. It can actually be your opportunity to reduce stress, cut down your tax bill, and set yourself up for better growth. Yes, really.

This isn’t some generic “get your taxes done” checklist. This is the guide we give to our real savvy, self-employed, high-potential clients who want to do things the right way. At Insogna CPA, a top-tier Austin, Texas CPA firm, this is how we prepare our clients for success.

Let’s walk through it together, step by step.

1. Start With Your Income Docs: You Can’t File What You Can’t Prove

Before you even think about deductions, start by collecting every document that reflects money coming in. Not just what you remember but everything that’s been officially reported.

Here’s what to round up:

• W-2s if you’re still on payroll somewhere
  
  
• 1099-NEC and 1099-K forms from contract work or payment platforms (Stripe, PayPal, Shopify, etc.)
  
  
• Payout reports from third-party marketplaces (Airbnb, Etsy, Amazon)
  
  
• Rental income summaries, if you lease out any property
  
  
• Cryptocurrency sales or swaps—yes, those are taxable
  
  
• Foreign financial accounts (this might trigger FBAR filing)
  
  

You’d be amazed how often we see income underreported not from deceit, but from oversight. But guess what? The IRS already has the 1099. So if your return doesn’t match, it raises a red flag.

Our advice? Bring it all. Even the weird one-time income sources. A licensed CPA in Austin, Texas (like us) can help determine what’s taxable, what’s not, and how to report it properly.

2. Organize Your Business Expenses and Receipts. Yes, All Year Long.

If income is the first half of the equation, expenses are the part that actually lowers your tax bill. And the more expenses you correctly categorize, the lower your taxable income.

Here’s where it gets real: you can’t deduct what you can’t prove. So start by organizing your receipts, invoices, and transactions. Use accounting software that syncs with your bank, categorize as you go, and document everything.

Common Deductions for Freelancers and Small Business Owners:

• Home office expenses (rent, utilities, internet—based on square footage used for work)
  
  
• Business vehicle use (either the IRS standard mileage rate—67 cents per mile for 2025—or actual vehicle expenses)
  
  
• Software & subscriptions (Zoom, Adobe, Trello, QuickBooks)
  
  
• Advertising & marketing (social ads, website costs, SEO services, photography)
  
  
• Continuing education (courses, certifications, industry publications)
  
  
• Business insurance (general liability, cyber, professional liability)
  
  
• Health insurance premiums if you’re self-employed
  
  

A small business CPA in Austin can help identify deductions unique to your industry. That might include domain renewals, co-working memberships, or even product samples for e-commerce sellers.

Pro tip: Don’t lump business and personal expenses together. Separate accounts make tax time faster, cleaner, and far less painful.

3. Make or Catch Up On Estimated Tax Payments

Here’s where a lot of business owners get caught off guard: you’re responsible for paying taxes throughout the year, not just at filing time.

If you’re self-employed or own a pass-through business (like an LLC or S-Corp), you’re expected to pay estimated taxes in four installments. These are due in:

• April
  
  
• June
  
  
• September
  
  
• January (of the following year)
  
  

Failing to pay or underpaying can lead to IRS penalties, even if your final tax bill is accurate. Ouch.

What to do:

• Review your actual net income (not just gross revenue)
  
  
• Account for deductions and credits
  
  
• Work with a tax advisor near you to run quarterly projections
  
  
• Pay on time, every time
  
  

At Insogna CPA, our clients receive reminders and proactive payment strategies to avoid surprises. We’re not just a tax preparation service near you, we’re your tax planning partner.

4. Revisit Last Year’s Tax Return Because You Probably Missed Something

We’re not judging, we’re just being honest. Even if your return was filed professionally, there are often missed deductions, overlooked carryforwards, or optimization opportunities.

What to look for:

• Did you properly categorize all your income sources?
  
  
• Were all available deductions claimed?
  
  
• Were you overpaying self-employment taxes because you weren’t structured as an S-Corp?
  
  
• Did you max out your retirement plan contributions?
  
  

A certified public accountant near you can perform a full tax return review and offer actionable changes before you file again. For some clients, we’ve recovered over $10,000 in missed savings simply by revisiting last year’s filing.

5. Make a Plan for Next Year Right Now

Tax prep isn’t something you do once a year. It’s a system that runs year-round. And the best time to plan is before you earn the income, not after.

Here’s how to prep smarter:

• Open a Solo 401(k) or SEP IRA. You can contribute up to $69,000 in 2025 (more if you’re over 50).
  
  
• Consider switching to an S-Corp if your net income exceeds $75,000 annually. This could reduce self-employment taxes significantly.
  
  
• Track expenses in real time with accounting software, not spreadsheets.
  
  
• Work with a CPA quarterly, not just at tax time. We help you adjust strategy as income changes.
  
  
• Know your FBAR obligations if you have overseas income or accounts over $10,000 at any time during the year.
  
  

The businesses that win at tax season are the ones that treat it as part of their overall growth strategy.

6. Know When DIY Just Won’t Cut It

Let’s be blunt: TurboTax doesn’t know your business. It won’t flag errors. It won’t ask the right questions. And it definitely won’t plan next year’s tax strategy.

You need more than a form-filler. You need:

• A CPA in Austin, Texas who understands entrepreneurs
  
  
• A team who files accurately and on time
  
  
• A tax advisor who identifies every legal deduction
  
  
• A strategist who helps you structure income, benefits, and savings the right way
  
  

Whether you’re looking for a tax preparer near you, a licensed CPA, or a certified professional accountant to handle complex filings like FBAR, entity restructuring, or multi-state returns, we’ve got your back.

7. What Working with Insogna CPA Looks Like

We’re not just another firm on the list of CPA firms in Austin, Texas. Here’s how we’re different:

• We start with strategy. Every client receives a custom roadmap tailored to their business goals.
  
  
• We communicate like real humans. No jargon. No gatekeeping. Just clear, proactive advice.
  
  
• We’re year-round partners. You don’t just hear from us in April. We check in throughout the year to help you pivot and grow.
  
  
• We’re obsessed with getting it right. From tax planning to FBAR filing to business structuring, we work the details so you don’t have to.
  
  

Our clients range from e-commerce founders and digital nomads to creatives, coaches, and consultants scaling into six and seven figures.

If you’re Googling “CPA firms near me” or “Austin accounting service for small business,” you can stop now. You’ve found the right partner.

Make Tax Season Work for You Not Against You

You’ve worked hard to build your business. You deserve a tax season that reflects that work, not one that derails your spring or drains your finances.

Insogna CPA is here to help you:

• Organize your finances
  
  
• Maximize deductions
  
  
• Eliminate guesswork
  
  
• Reduce your tax liability legally
  
  
• Build a proactive plan for financial success
  
  

Book your tax prep session today with our team of CPAs, enrolled agents, and tax consultants. Let’s make this tax season your easiest and most profitable one yet.

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Summary of What This Blog Covers

• Identify key deductions like home office, vehicle use, software, and marketing to reduce taxable income.
  
  
• Maximize savings through health insurance and retirement contributions.
  
  
• Track commonly missed write-offs like business meals, internet, and coworking fees.
  
  
• Work with a CPA to build a proactive, year-round tax strategy tailored to your business.

You didn’t become your own boss to work around the clock, wear every hat imaginable, and then lose your hard-earned income to taxes.

And yet every year, small business owners and freelancers overpay the IRS. Why? Because they miss deductions. They wait until April to think about taxes. Or they rely on basic software that doesn’t understand the nuance of their business.

If that sounds familiar, you’re in the right place. At Insogna CPA, we’ve worked with countless freelancers, consultants, and growing businesses across Austin and the U.S. to legally reduce their tax burden, track every legitimate expense, and build tax strategies that support long-term growth.

Today, we’re walking you through how to maximize your tax deductions as a freelancer or small business owner: what’s actually deductible, how to stay compliant, and why a strategic CPA relationship matters more than ever.

Let’s get started.

What Are Tax Deductions and Why Do They Matter?

Tax deductions, sometimes called “write-offs,” lower your taxable income. That means you’re not taxed on your gross revenue, but rather your net income: what’s left after deducting qualifying business expenses.

Here’s a simple example:

• You earn $100,000 in total revenue.
  
  
• You track $30,000 in deductible business expenses.
  
  
• The IRS taxes you on $70,000 not the full $100,000.
  
  

In many cases, this reduction in taxable income can save you thousands or tens of thousands in federal and state income tax, self-employment tax, and possibly more depending on your state and business structure.

The catch? You need to know what’s deductible, maintain accurate records, and, ideally, build a proactive tax strategy with a professional.

That’s where we come in.

Top Tax Deductions for Freelancers and Small Business Owners

This is not an exhaustive list, but these are some of the most common and most powerful deductions our clients benefit from.

1. Home Office Deduction

If you work from home and use a portion of it exclusively and regularly for business, you may qualify for a home office deduction.

You can choose between two methods:

• Simplified Method: $5 per square foot of home office space, up to 300 sq. ft. (max $1,500).
  
  
• Actual Expense Method: Deduct a percentage of your mortgage interest or rent, utilities, home insurance, repairs, depreciation, and more based on the square footage of your office space compared to your home.
  
  

Key Requirement:

The space must be used only for business. Your guest room or kitchen table won’t qualify unless it’s exclusively your workspace.

This deduction is often overlooked due to fear of triggering an audit. With clear documentation and expert guidance, however, it’s a legitimate and valuable deduction.

2. Business Use of Your Vehicles

If you use your vehicle for business even occasionally, you can deduct mileage or actual vehicle-related expenses.

Two Options:

• Standard Mileage Rate: For 2025, the IRS standard mileage rate is 67 cents per business mile. Just multiply your business miles by this rate to calculate your deduction.
  
  
• Actual Expense Method: Deduct a percentage of your total vehicle expenses (car payments, insurance, maintenance, repairs, gas, and depreciation) based on how much you use the vehicle for business.
  
  

What Counts as Business Use:

• Driving to meet clients
  
  
• Picking up supplies or materials
  
  
• Traveling to and from networking or industry events
  
  
• Visiting job sites or business locations
  
  

Tip: Use apps like MileIQ, Everlance, or QuickBooks Self-Employed to automatically track mileage and generate IRS-compliant reports. Consistent recordkeeping makes a big difference come tax season.

3. Health Insurance Premiums

Self-employed individuals who are not eligible for an employer-subsidized plan (through a spouse, for example) can deduct the full cost of their health insurance premiums.

This includes:

• Health insurance
  
  
• Dental insurance
  
  
• Vision insurance
  
  
• Long-term care premiums (limited by age-based thresholds)
  
  
• Coverage for your spouse and dependents
  
  

Unlike many deductions, this one applies even if you don’t itemize your deductions.

4. Business Software and Subscriptions

Nearly all modern businesses rely on digital tools. If you pay for any app, software, or service necessary for your business operations, it’s deductible.

Examples:

• Accounting: QuickBooks, Xero, FreshBooks
  
  
• Communication: Zoom, Slack
  
  
• Project Management: Asana, Trello, Notion
  
  
• Cloud Storage: Google Drive, Dropbox
  
  
• Creative: Canva, Adobe Creative Cloud
  
  

Always keep receipts and clarify which tools are used solely for business.

5. Marketing and Advertising

Marketing is a business necessity and every dollar you spend to promote your business is generally deductible.

This includes:

• Social media advertising (Facebook, Instagram, LinkedIn, etc.)
  
  
• Paid search ads (Google Ads, Bing)
  
  
• Website hosting and maintenance
  
  
• SEO services and consultants
  
  
• Content creation (copywriting, design)
  
  
• Branding and logo design
  
  
• Promotional materials
  
  
• Professional photography or video services
  
  

Whether you’re running campaigns yourself or hiring an agency, these costs are deductible business investments.

6. Continuing Education and Professional Development

The IRS allows deductions for educational expenses that help you maintain or improve skills required in your current profession.

Eligible expenses include:

• Online courses and workshops
  
  
• Industry certifications
  
  
• Professional books and trade publications
  
  
• Conference attendance and travel
  
  
• Memberships in professional organizations
  
  

However, expenses for entering a new field are not deductible. For example, if you’re a graphic designer and you take courses in web design, that qualifies. If you switch from marketing to real estate, it does not.

7. Retirement Contributions

One of the most effective ways to reduce your taxable income while building long-term wealth is to contribute to a qualified retirement plan for the self-employed.

Options include:

• SEP IRA: Contribute up to 25% of net earnings, with a maximum contribution limit of $69,000 for 2025.
  
  
• Solo 401(k): Allows both employee and employer contributions, with a total limit of $69,000 in 2025, or $76,500 if you’re age 50 or older (includes catch-up contributions).
  
  
• SIMPLE IRA: Designed for small businesses with employees. The 2025 contribution limit is $16,500, with an additional $3,500 catch-up allowed for those 50 and older.
  
  

Which plan is best? It depends on your income level, whether you have employees, and your long-term financial goals. A qualified CPA in Austin, Texas can guide you through the decision and ensure your contributions are optimized for tax savings.

Frequently Overlooked Deductions

Even meticulous business owners can overlook these:

• Business meals (50% deductible): Includes client meetings or meals while traveling for work.
  
  
• Client gifts: Deduct up to $25 per client per year.
  
  
• Business insurance: Professional liability, cyber insurance, and general business coverage.
  
  
• Business loan interest: If the loan is for business expenses, the interest is deductible.
  
  
• Internet and phone bills: Deduct the portion used for business purposes.
  
  
• Bank and credit card fees: Business account fees and processing fees count.
  
  
• Coworking space fees: Monthly memberships and day-use passes can be deducted.
  
  

Every small deduction adds up. Consistent tracking ensures you don’t leave money on the table.

FBAR and Foreign Accounts: What You Need to Know

Do you have foreign bank accounts, brokerage accounts, or even crypto assets stored offshore?

If the total value of your foreign financial accounts exceeds $10,000 at any point during the year, you’re required to file an FBAR (Report of Foreign Bank and Financial Accounts) with the Treasury Department.

Failing to file FBARs can lead to serious penalties, including fines and criminal charges.

At Insogna CPA, we offer FBAR filing support for business owners and freelancers who operate globally. Whether you’re managing overseas investments or working abroad, we’ll help you stay compliant.

Why You Need More Than Just a Tax Preparer

There’s a difference between tax preparation and tax strategy.

A tax preparer records what already happened. A strategic CPA partner helps you plan ahead, making decisions now that affect your bottom line next year and beyond.

At Insogna CPA, we are more than a tax preparation service near you, we’re your financial strategy partner. We work with:

• Freelancers
  
  
• Consultants
  
  
• Creative professionals
  
  
• Coaches and agency owners
  
  
• E-commerce sellers
  
  
• Small business service providers
  
  

We support clients locally here in Austin, TX and virtually across the U.S., providing proactive tax planning and personalized CPA guidance all year round.

How to Work with Insogna CPA

We don’t just prepare taxes. We help you:

• Track and categorize expenses throughout the year
  
  
• Set up the right retirement and business structure
  
  
• Plan quarterly estimated payments
  
  
• Ensure IRS compliance
  
  
• Find every deduction available to you
  
  

Whether you’re looking for:

• A certified CPA near you
  
  
• An Austin, TX accountant for small business
  
  
• Tax strategy services tailored to freelancers
  
  
• FBAR filing help
  
  
• Or a long-term partner you can trust…
  
  

We’re here.

Start Saving More Today – Book a Tax Strategy Session

You didn’t build a business just to give more to the IRS than you have to. Let’s put your tax strategy to work.

Book your free consultation with Insogna CPA, and let’s maximize every deduction, reduce your stress, and keep more of your hard-earned income exactly where it belongs: in your business.

We proudly serve as your trusted:

• Tax preparer near you
  
  
• Tax advisor in Austin
  
  
• Certified public accountant near you
  
  
• CPA in Austin for freelancers and small businesses
  
  
• Enrolled agent and FBAR specialist
  
  
• Long-term tax strategist and financial guide
  
  

Let’s take your taxes from a liability to an opportunity.

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Bookkeeping probably wasn’t what got you excited about starting your business. You’re here to build something incredible, not spend your nights drowning in spreadsheets. But here’s the deal: if your books are a mess, your money is, too. And that? That’s a problem.

If you’re a seasoned businesswoman in Austin, Texas, juggling growth, clients, and a million other responsibilities, it’s time to get real about your numbers. A few small bookkeeping missteps can spiral into cash flow nightmares, tax penalties, or even an audit. Let’s talk about the biggest red flags you can’t afford to ignore and how a trusted Austin, Texas CPA can help you fix them before they cost you thousands.

1. Your Financial Reports Don’t Add Up

Ever looked at your profit and loss statement and thought, Wait… where did all my money go? If your numbers feel like a mystery novel instead of a clear-cut financial story, something’s off.

What’s Really Going On?

• Transactions aren’t recorded consistently. One month looks wildly different from the next.
• Expenses and income are miscategorized (yes, that fancy networking dinner was a business expense, not “miscellaneous”).
• You’re missing invoices, receipts, or crucial details that make balancing the books impossible.

Why This Matters

Your financial reports should tell the truth about your business, not keep you guessing. If they’re unreliable, you could be overpaying on taxes, underpricing your services, or failing to plan for growth. A CPA firm in Austin, Texas can help straighten things out and give you financial clarity—finally.

2. You’re Always Wondering Where Your Money Went

You know you’re making sales. But somehow, every month feels like a scramble to cover expenses. If cash flow always seems tight even when business is booming, it’s time to dig into the numbers.

Red Flags to Watch For

• Your bank account balance is a surprise—you’re never quite sure what’s in there.
• Clients are slow to pay, and you don’t have a system to track who still owes you.
• You keep dipping into savings (or worse, using personal money to float the business).

How This Can Hurt Your Business

Cash flow issues don’t just create stress. They kill businesses. If you can’t confidently plan for expenses, payroll, or investments, you’re operating on shaky ground. A small business CPA in Austin can help you take control with better invoicing, budgeting, and forecasting so you’re never caught off guard again.

3. You’re Not Totally Sure If Your Books Are… Right

Bookkeeping isn’t your full-time job (and let’s be real it’s not your favorite thing, either). But small errors like duplicate entries, misclassified expenses, or forgetting to reconcile accounts can add up fast.

The Risk of “Little Mistakes”

• Overpaying (or underpaying) taxes because your numbers aren’t accurate.
• Payroll mishaps that could upset employees or flag compliance issues.
• IRS audits because the government really doesn’t like inconsistencies.

How to Fix It

If you’re guessing instead of knowing that your books are right, it’s time to call in reinforcements. Many Austin accounting firms specialize in bookkeeping clean-ups so you can stop stressing and start trusting your numbers.

4. Tax Time Feels Like a Full-Blown Crisis

Do you find yourself scrambling every year when tax season rolls around? Or worse, getting hit with penalties for missing deadlines? If your bookkeeping is inconsistent, tax prep is a nightmare.

Signs You’re Playing with Fire

• You never quite know what you owe in taxes until the last minute.
• You’re missing receipts and deductions that could save you money.
• You always file late (and pay the price in penalties).

The Fix: Work Smarter, Not Harder

A tax advisor in Austin can streamline your tax prep so you’re not stuck playing catch-up every year. By keeping up with real-time bookkeeping, you can maximize deductions, minimize stress, and keep more of your hard-earned money.

5. You Haven’t Reconciled Your Bank Statements in… a While

If your bank balance and your books never quite match up, there’s a problem. Skipping reconciliations means you might be missing fraudulent charges, forgotten transactions, or outright accounting mistakes.

What Can Go Wrong?

• Fraudulent transactions slip through unnoticed.
• Your financial reports don’t reflect reality (so you make decisions based on bad data).
• Tax filings become even more stressful because numbers don’t match up.

The Solution: A Trusted Partner for Your Books

Regular bank reconciliations ensure everything checks out so you’re not caught off guard by hidden mistakes. Working with a CPA firm in Austin, Texas can give you confidence in your numbers without having to dig through transactions yourself.

It’s Time to Get Your Books Right—For Good

Listen, you’re running a business, not a bookkeeping firm. And while you’re more than capable of learning QuickBooks or chasing down missing receipts, your time is way better spent growing your company.

The good news? You don’t have to do it alone.

At Insogna CPA, we specialize in helping women entrepreneurs keep their books clean, their taxes optimized, and their stress levels low. We’re one of the top Austin CPA firms, and we know how to simplify bookkeeping so you can focus on what you do best.

Let’s Fix This Together

If you’re done guessing, stressing, or worrying about whether your books are right, let’s talk.

We’ll clean up your books, streamline your taxes, and set you up for success so you can focus on growing your business with confidence.

Get in touch today and work with a CPA firm in Austin, Texas, that understands what you need. Because your business deserves financial clarity, and so do you.

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Summary of What This Blog Covers:

• Seven Actionable Tax Strategies Designed Specifically for Women Entrepreneurs — This blog walks through practical, powerful ways to keep more of your income—from optimizing your business structure with an S-Corp election to claiming overlooked deductions like home office use and business travel. These strategies are tailored for growth-stage women business owners ready to reduce their tax burden without sacrificing compliance.
  
  
• Detailed Guidance on Legal, Proven Tactics to Reduce Taxable Income
  Learn how to use IRS-approved methods like Section 179 depreciation, accountable plans for reimbursements, and tax-advantaged retirement accounts (Solo 401(k), SEP IRA, and more) to reduce your tax liability in real time. The blog offers step-by-step clarity, with a strong call to work with a licensed CPA in Austin, Texas for tailored support.
  
  
• Tax Planning That Supports Both Profitability and Purpose
  For values-driven entrepreneurs, this blog explains how to make charitable contributions strategically—using appreciated assets or donor-advised funds (DAFs) to support your causes while maximizing deductions. It’s about aligning generosity with tax efficiency, with expert help from a taxation accountant or income tax chartered accountant.
  
  
• Why Working with a Strategic, Year-Round CPA Firm Changes Everything
  Instead of reactive filing in April, the blog makes a compelling case for building a proactive tax partnership with a small business CPA in Austin. With quarterly planning, clean reimbursements, entity structure reviews, and real-time advice, women entrepreneurs can finally lead their financial strategy like they lead their business—with clarity and confidence.

Let’s start with this truth: you didn’t launch your business to get buried in tax law. You launched it because you had a vision, a voice, and a relentless belief in the value you offer.

But here’s what no one tells you in those early hustle years: as your business grows, so does your need for a smart, strategic tax plan. And without it? You’re likely leaving money on the table, overpaying Uncle Sam, and possibly risking unnecessary audit flags.

At Insogna CPA, we work with powerhouse women who are experts in their fields but not necessarily in the tax code. And that’s okay. That’s where we come in. Not just with spreadsheets, but with insights, structure, and support that actually fits your world.

Here are seven tax strategies designed to help you keep more of what you earn, reduce risk, and plan ahead like the strategic CEO you are. This isn’t about hacks or loopholes. It’s about informed, legal, proactive decisions that support your long-term success.

1. Elect S-Corp Status to Optimize Your Salary and Tax Burden

When your net profit starts hitting six figures, it’s time to look beyond the sole proprietorship or basic LLC. One of the smartest tax-saving strategies for established entrepreneurs is electing to be taxed as an S-Corporation.

Why? Because an S-Corp lets you split your income into two parts:

• A reasonable salary that’s subject to payroll and self-employment taxes
  
  
• Distributions that are not subject to self-employment tax
  
  

Here’s how that translates: if you earn $120,000 and pay yourself a salary of $60,000 (a reasonable rate for your role), the remaining $60,000 as distributions will avoid that 15.3% self-employment tax, saving you over $9,000.

But don’t rush in without a plan. The IRS watches S-Corp salaries closely. Pay too little? You risk audits and penalties. Pay too much? You’re giving away savings.

A trusted CPA in Austin, Texas can help you determine the right salary based on your industry, experience, and responsibilities, while helping you file the necessary forms (Form 2553, for starters), and setting up payroll with compliance built in.

This structure isn’t just about saving money, it’s about treating yourself like the CEO you are.

2. Claim the Home Office Deduction The Right Way

Gone are the days when the home office deduction was seen as an audit red flag. The IRS has modernized its stance, and if you use part of your home exclusively and regularly for business, you deserve to claim it.

There are two options for this deduction:

• Simplified Method: Deduct $5 per square foot of office space, up to 300 square feet. Clean, easy, flat-rate.
  
  
• Actual Expense Method: Calculate what percent of your home is dedicated to work, and deduct that same percentage from mortgage interest or rent, utilities, home insurance, internet, repairs, and more.
  
  

The actual expense method can offer greater savings but it requires excellent recordkeeping.

Still working from your dining room table? Unfortunately, that’s not exclusive use. But if you’ve carved out a room or defined area that you use only for work, it likely qualifies.

Work with a small business CPA in Austin to review your home layout and expense history. They’ll help ensure you maximize this deduction without triggering unnecessary audit risk.

3. Deduct Business Meals and Travel Expenses with Confidence

Business isn’t just built behind a desk. It’s built over coffee catch-ups, working lunches, strategy retreats, and conferences. The costs associated with building and maintaining those relationships? They’re often deductible as long as they’re documented properly.

Let’s break this down:

• Business meals: 50% deductible. You must document who you met with, where, when, and the business purpose.
  
  
• Travel: Fully deductible if it’s primarily for business. That includes flights, baggage fees, hotel stays, rideshare costs, parking, and even a portion of meals while traveling.
  
  
• Conferences and professional development: Registration fees, transportation, and lodging are deductible when the event directly supports your work or growth.
  
  

Tip: If you mix personal travel with business, only the business-related portion is deductible. For example, if you attend a three-day conference in NYC and spend two extra days sightseeing, the airfare may still be deductible (because the primary purpose was business), but meals and lodging for those additional two days are not.

A tax professional or a certified CPA near you can help you segment and substantiate your travel costs to ensure you’re compliant and taking full advantage of what’s available.

4. Make Retirement Contributions a Tax-Saving Priority

Many entrepreneurs treat retirement savings as something they’ll “get to later.” But later often becomes never and that’s not only bad for your future, it’s bad for your current tax bill.

Retirement contributions reduce your taxable income today and create security for tomorrow. Think of it as a double win.

Here are three common plans:

• Solo 401(k): Ideal if you’re self-employed with no employees. Allows for both employee and employer contributions—up to $69,000 in 2025 (or $76,500 if you’re 50+).
  
  
• SEP IRA: Great for entrepreneurs with a team. Allows contributions up to 25% of eligible compensation.
  
  
• Traditional IRA: Simple to set up and contributes up to $7,000 ($8,000 for those 50+) with income-based deductibility.
  
  

If you’re unsure which plan fits your needs, a tax consultant or certified public accountant near you can walk you through it. With the right plan, you’ll reduce your tax burden and pay yourself in the process.

5. Use Section 179 and Bonus Depreciation to Accelerate Deductions

Have you invested in equipment this year? Maybe a new laptop, vehicle, camera gear, or manufacturing tools? Instead of depreciating that asset slowly over several years, you may be able to write off the full amount in year one.

Here’s how it works:

• Section 179 allows businesses to deduct up to $1,160,000 in qualifying equipment and software in 2025.
  
  
• Bonus depreciation lets you deduct 60% of the cost of qualified property upfront, even if Section 179 limits are maxed out.
  
  

These deductions reduce your taxable income, potentially saving thousands. But timing and qualification rules apply.

Work with a CPA firm in Austin, Texas to plan purchases strategically. Buying in December might be the key to lowering your tax bill for the year, while waiting until January could delay those savings by 12 months.

6. Implement an Accountable Plan to Keep Reimbursements Clean and Tax-Free

Here’s a behind-the-scenes tactic savvy entrepreneurs use all the time: reimbursing themselves or employees for legitimate business expenses through an accountable plan.

Why it matters: Without an accountable plan, those reimbursements could be considered taxable income, increasing your payroll and income taxes unnecessarily.

With one in place, you can:

• Reimburse yourself for business mileage, cell phone use, internet, and travel
  
  
• Avoid including those reimbursements as income on a W-2 or 1099
  
  
• Maintain IRS compliance with simple documentation
  
  

This is one of the fastest and easiest ways to save money on taxes and yet, so many business owners miss it.

A tax preparer near you or Austin accounting firm can help you set this up in a way that’s clear, compliant, and easy to maintain.

7. Be Strategic with Charitable Giving

If generosity is baked into your brand, let’s make sure it’s optimized for tax purposes too.

Here’s what you need to know:

• Donating appreciated stock instead of cash can help you avoid capital gains tax and still claim the full donation value.
  
  
• Charitable donations must go to qualified 501(c)(3) organizations to be deductible.
  
  
• Contributions over $250 require a written acknowledgment from the organization.
  
  

For advanced giving strategies, consider opening a donor-advised fund (DAF). It allows you to contribute now, receive a deduction this year, and distribute funds over time to the charities of your choice.

An experienced taxation accountant or income tax chartered accountant can walk you through the mechanics, especially if your business has a philanthropic arm or hosts fundraising events.

You Deserve a Tax Strategy That Reflects the Business You’ve Built

Taxes don’t have to feel like a burden, a mystery, or a seasonal scramble. With the right CPA in Austin, Texas or a supportive tax advisor near you, you can step into every quarter with clarity, control, and confidence.

At Insogna CPA, we offer more than just tax preparation services near you, we offer forward-thinking strategy, real-time support, and the kind of proactive partnership that helps you stop reacting and start leading your finances like a true CEO.

Whether you’re:

• Choosing between LLC and S-Corp
  
  
• Looking to structure your charitable giving
  
  
• Navigating FBAR filing or multi-state sales tax
  
  
• Hiring your first employee or building your internal finance team
  
  

We’re here to support you, challenge you, and cheer you on.

Let’s build your custom tax strategy today.
 Because you work too hard not to keep more of what you earn and we’re ready to help you do just that.

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Real estate investing is all about cash flow, tax advantages, and smart financial moves. But even seasoned investors fall into costly accounting traps that can drain profits and trigger IRS headaches. Whether you own a few rental properties or manage a growing portfolio, one mistake can mean overpaying in taxes, missing deductions, or scrambling to fix financial messes.

The good news? These mistakes are easy to avoid—if you know what to look for. Here’s what’s hurting your bottom line and how to fix it before it costs you big.

1. Mixing Personal and Business Expenses

Running your real estate investments through your personal accounts? That’s a fast track to tax headaches, messy records, and potential legal issues. The IRS isn’t a fan of blurred financial lines, and neither is your bookkeeper.

Fix It:

• Open a dedicated business bank account and credit card for your rental properties.
• Keep personal and business transactions completely separate—no exceptions.
• Work with a small business CPA in Austin to ensure your books are IRS-ready.

2. Not Tracking Security Deposits Properly

Security deposits aren’t income. They’re liabilities. If you’re lumping them in with rental revenue, you’re setting yourself up for reporting errors, compliance issues, and refund miscalculations.

Fix It:

• Keep security deposits in a separate escrow or trust account (it’s often legally required).
• Track deposits correctly in QuickBooks or another accounting system.
• Have an Austin tax accountant review your books to ensure compliance.

3. Underestimating Quarterly Tax Payments

Rental income isn’t tax-free. If you’re not setting aside enough for quarterly estimated tax payments, you’re in for a massive IRS bill (and likely penalties) at year-end.

Fix It:

• Calculate quarterly tax payments based on rental income, depreciation, and deductions.
• Set up automated savings to cover tax liabilities.
• A CPA in Austin, Texas can help estimate and optimize your tax payments.

4. Skipping a Cost Segregation Study

Depreciation is one of the biggest tax advantages for real estate investors. But if you’re not using a cost segregation study, you’re leaving money on the table. This strategy accelerates depreciation deductions, reducing taxable income and boosting cash flow.

Fix It:

• Conduct a cost segregation study to break down property components with shorter depreciation lifespans.
• Take advantage of bonus depreciation to lower your tax bill even further.
• A tax advisor in Austin can guide you through the process and ensure compliance.

5. Misclassifying Employees vs. Contractors

Hiring property managers, maintenance workers, or leasing agents? If you’re misclassifying them as independent contractors instead of employees, you could face IRS penalties, back taxes, and legal trouble.

Fix It:

• Understand the IRS guidelines for independent contractors vs. employees.
• If you have employees, set up proper payroll systems to handle tax withholdings.
• An Austin accounting service can review your classifications to ensure compliance.

6. Forgetting to Claim Depreciation

Real estate depreciation is a tax break you can’t afford to miss. If you’re not claiming the full depreciation allowance, you’re overpaying in taxes. Plain and simple.

Fix It:

• Make sure you’re recording annual depreciation expenses for rental properties.
• Use a 1031 exchange when selling properties to defer depreciation recapture taxes.
• A CPA firm in Austin, Texas can ensure you’re maximizing tax benefits.

7. Using Outdated Accounting Methods Instead of Integrated Software

Still tracking rental income and expenses in spreadsheets? That’s a disaster waiting to happen. Manual bookkeeping leads to errors, missed deductions, and cash flow confusion.

Fix It:

• Switch to cloud-based accounting software like QuickBooks Online for real estate investors.
• Integrate property management tools like RealPage with QuickBooks for automated tracking.
• A CPA firm in Austin, Texas can help set up and optimize your accounting system.

Take Control of Your Real Estate Finances

Real estate investing is about growing wealth and not dealing with tax problems, bookkeeping nightmares, and IRS penalties. If any of these mistakes sound familiar, it’s time to clean up your accounting and protect your profits.

At Insogna CPA, we specialize in helping real estate investors streamline bookkeeping, maximize tax deductions, and stay IRS-compliant. Whether you need an Austin tax accountant, a small business CPA in Austin, or a tax advisor in Austin, we’ve got you covered.

Let’s get your accounting right. Schedule a consultation today.

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