The year-end tax checklist that saves $10K+
YOUR YEAR-END TAX CHECKLIST THAT SAVES $10,000+
Last Tuesday at 2pm, a software consultant called me in panic mode.
Zero quarterly estimates paid. No salary all year. No retirement account. December 31st coming fast.
In 90 minutes, we built a plan that saved him $120,000.
Here's exactly what we did:
- Set up a Solo 401(k) before December 31st deadline ($69,000 deduction)
- Ran a $300K year-end payroll optimized for QBI ($50,000 saved)
- Paid his entire federal tax through W-2 withholding (avoided all penalties)
- Made a $45K Georgia PTE election payment
- Pulled trigger on investment property he'd been considering
Total cash outlay: $375K
Tax savings: $120,000+
Cost if he'd waited until January: Everything.
You know that feeling? That quiet panic that you're missing something huge?
Like another client told me: "I feel like I'm one tax season away from a jail cell — not because I'm doing anything wrong, but because I don't know what I don't know."
You have 41 days left. After December 31st, these opportunities are gone forever.
The Three Hard Deadlines That Cost the Most
1. Solo 401(k): The $20,000 Mistake
Want to max out a Solo 401(k) for 2025? The plan must exist by December 31st.
Client called January 2nd. Could have saved $20,000. Too late. The 401(k) didn't exist.
Action NOW:
- Set up the plan THIS WEEK
- Employee deferrals ($23,500) must run through December payroll
- Employer contributions can wait until April
- Total shelter: up to $70,000 ($77,500 if 50+)
No retirement account by Thanksgiving? You're cutting it close.
2. S-Corp Salary: The Annual Optimization
Your 2025 salary locks December 31st. Can't fix it in February.
Too high? Kills your QBI deduction. $300K S-Corp paying $210K salary = $18,000 overpayment annually.
Too low? IRS red flags, missing Social Security credits, or missed QBI optimization.
The sweet spot: The 2/7 rule. Add back all wages to net income, multiply by 2/7. Above $394,600 in taxable income, this calculation helps you balance QBI maximization with reasonable compensation.
The hack nobody mentions: Run a year-end bonus. Pay only payroll taxes, withhold the rest for federal estimates. Optimizes QBI and covers quarterly estimates without penalties. Two birds, one stone.
3. Equipment: The Return on Hassle Test
100% bonus depreciation is back. $50,000 equipment purchase saves $12,500-$18,500.
But wait — should you buy it?
Only if you were buying it in 2026 anyway. Otherwise you're spending $50K to save $12K. That's not math, that's TikTok.
Reality check: "Placed in service" means USING IT. Supply chain delays mean order by December 10th or forget it.
Vehicle note: 6,000+ pounds get special treatment. Cybertruck qualifies. G-Wagons are still stupid.
Four More Moves Worth Thousands
State Tax Workarounds
PTE elections let S-Corps pay state tax at entity level, bypassing SALT cap. Georgia, California, New York, others. Worth $5K-$15K. Must pay by December 31st.
Income/Expense Timing
Accelerate 2026 expenses into 2025 (prepay insurance, rent, software). Defer income only if next year looks lighter. Basic but works.
Charitable Leverage
Donate appreciated stock instead of cash. Full deduction, no capital gains. Then buy it back if you love it.
The Bad Books Reality
Can't optimize what you can't see. Three-month-old unreconciled books = flying blind = missing thousands.
Five Expensive Mistakes
- Waiting until December 28th: Equipment needs 2-3 weeks. Retirement needs processing time.
- Setting up 401(k) in January: "I'll max out my 2025 contribution." No, you won't. It doesn't exist.
- Deferring income to a HIGHER tax year: Moving money to a worse bracket.
- Buying a G-Wagon for the deduction: Spending $150K to save $45K is negative ROI.
- DIY books in December: Six-figure decisions on three-month-old data.
The Competency Reality
Most CPAs are historians. They record what happened. They don't change what will happen.
The difference between a tax preparer and a tax strategist? About $30,000 a year.
Your Move: December 11th Webinar
The only year-end planning session we'll run before deadlines hit.
60 minutes of highly actionable steps to take before December 31 to help you save thousands:
- Calculate optimal S-Corp salary
- Identify last-chance deductions
- Run equipment purchase ROH calculation
- Get PTE election instructions
- Live Q&A for your specific situation
Can't make it live? Register anyway — we'll send the recording.
The Bottom Line
That consultant who saved $120K? He almost called in January. Would have cost him six figures.
The difference between November action and February regret: everything.
You're reading this in November. You have time.
Let's have the November conversation, not the February one.
P.S. For anyone who signs up with an annual Better Bookkeeping subscription you get 2 months free. Pay us this year, deduct it this year, get all of 2026 included. Easiest Return on Hassle calculation you'll make.