It's December 22nd. You have 9 days left in 2025.

Most business owners think it's too late for tax planning, that everything meaningful happened earlier in the year. But that's not entirely true.

Last week, a solo marketing consultant saved $48,859 in taxes with six moves executed in three days. Meanwhile, business owners who think December is "too late" routinely leave $10K-$25K+ in tax savings on the table.

The difference? Understanding what's possible vs. what's not.

Some tax strategies require months of setup. Others can be executed in days. Understanding which moves work with limited time — and executing them immediately — can mean the difference between saving thousands or leaving money on the table.

The key is knowing the difference and acting quickly on those that can still be done. When you're caught short on time, knowing which last-minute tax strategies deliver results can save thousands.

9 Days: What's Possible vs. What's Not

What you CAN'T do:

• Change entity structure without potential penalties (S-Corp election deadline was March 15, 2025)
• Complete complex restructuring or cost segregation studies
• Implement strategies requiring multiple approvals or lengthy setup

What you CAN still execute:

• Equipment purchases with same-week delivery and placement in service
• Expense acceleration and strategic prepayments
• Income timing adjustments
• Solo 401(k) establishment (if you move fast and have the right provider) and contributions to existing retirement accounts
• Fourth quarter estimated payments
• Year-end charitable giving

The rule: If it requires setup time, you need to act immediately. If it's execution-based, you still have breathing room.

Move #1: Section 179 Equipment Purchases (Execute Fast)

The opportunity: Purchase AND place qualifying equipment in service before December 31st for immediate Section 179 deductions.

What actually works in 9 days:

• Computer systems and software from local retailers (not custom orders)
• Office furniture in stock at local suppliers
• Professional tools and small equipment on showroom floors
• Vehicles from dealer stock (if you can find what you need immediately)

Holiday reality check: Most vendors have limited hours, delivery services are backed up, and installation crews are unavailable. You're looking at equipment sitting in local inventory, not special orders or items requiring complex setup.

Realistic purchase range: $25,000-$50,000 total equipment purchases

The numbers: $35,000 equipment purchase saves $11,200-$12,950 for businesses in the 32%-37% tax brackets.

Critical requirements:

• Confirmed same-week delivery (not just "estimated")
• Equipment operational by December 31st (photos required)
• Legitimate business purpose (not just tax savings)

Documentation required: Purchase invoices, delivery confirmation, photos showing equipment in service, business use logs starting immediately.

When to skip: If you can't find needed equipment in local inventory or guarantee delivery/setup by December 31st.

Move #2: Strategic Expense Acceleration

Prepay expenses under the 12-month rule: You can deduct prepaid expenses in 2025 if they cover 12 months or less and don't extend beyond December 31, 2026.

High-impact prepayments:

• Annual insurance premiums and maintenance agreements
• Software subscriptions and professional memberships
• Marketing contracts and professional services retainers
• Office supplies and materials for Q1 2026

The calculation: $40,000 in accelerated expenses saves $12,800-$14,800 in the 32%-37% brackets.

Payment timing matters:

• Credit cards: Charges count when processed
• Checks: Must be mailed by December 31st (postmark counts)
• Electronic payments: Must be submitted by December 31st

Move #3: Strategic Income and Payment Timing

Income deferral options:

• Hold late December checks until January deposit
• Delay final invoicing until January 2nd
• Request January payment dates for completed work
• Defer year-end bonuses to first week of January

When this makes sense: Similar expected 2026 income or you're implementing other strategies to reduce 2025 liability.

When to avoid: Need immediate cash flow, expect significant 2026 income increases, or client relationships could be damaged.

Move #4: Retirement Account Strategies

Last-minute Solo 401(k) setup (high urgency): Many providers can generate plan documents within 1-3 business days. The plan must be formally adopted by December 31st for 2025 employee deferrals—employer funding can happen later. Starting December 22nd gives you roughly one week of working days, which is possible if you respond to emails immediately, have your EIN ready, and use a provider comfortable with last-minute setups.

Critical caveat: Any delay (identity verification, missing forms, holiday closures) can push you past December 31st. Treat this as urgent and confirm your provider can generate adoption documents by year-end even if account funding happens in January.

When to skip Solo 401(k) setup: If you can't commit to immediate responses or lack required documentation, use SEP IRA instead (can establish and fund until tax filing deadline, maximum $70,000).

If you already have retirement accounts (easier execution):

• Solo 401(k) employee deferrals: Process by December 31st, up to $23,500 ($31,000 if 50+)
• HSA contributions: Up to $4,300 individual/$8,550 family ($1,000 extra if 55+)
• Employer contributions: Can make until filing deadline for additional savings

Setup vs. burden: Solo 401(k) establishment requires intense focus for 3-4 days but offers higher contribution limits. SEP IRA setup is simpler with slightly lower limits but more flexibility.

Real impact: $50,000 retirement contribution saves $16,000-$18,500 for high earners.

Move #5: Fourth Quarter Estimated Tax Payment Strategy

Smart timing: Pay by December 31st instead of waiting until January 15th deadline.

Safe harbor protection:

• 100% of 2024 tax liability (110% if AGI exceeded $150,000)
• Alternative: 90% of 2025 estimated tax
• Avoid underpayment penalties and January cash flow pressure

Why pay early: Locks in penalty protection and provides certainty for year-end planning.

Move #6: Year-End Charitable Contributions

Timing requirements:

• Cash contributions: Must be made by December 31st
• Credit card charges count when processed
• Appreciated stock: Must transfer ownership by December 31st

Donor-advised funds: Get immediate 2025 deduction, decide on grants later. Funds grow tax-free until distributed.

Documentation: Written acknowledgment for contributions over $250, Form 8283 for non-cash contributions over $500.

Case Study: How a Solo Marketing Consultant Saved $48,000+

A solo marketing consultant specializing in enterprise rebranding projects earned $650,000 profit in 2025. In three days, he executed six tax moves:

• Equipment purchase: $60,000 in high-end computer systems and office furniture (saved $22,200)
• Expense acceleration: $25,000 in software renewals and professional subscriptions (saved $9,250)
• Solo 401(k): $23,500 employee deferral (saved $8,695)
• HSA contribution: $8,550 family maximum (saved $3,164)
• Estimated payment: $18,000 for safe harbor (avoided potential underpayment penalties)
• Charitable contribution: $15,000 to donor-advised fund (saved $5,550)

Total tax reduction: $48,859 plus penalty protection

Time investment: 12 hours across 3 days

Return on effort: $4,072 per hour

What You Should NOT Do

Avoid these mistakes:

• Equipment purchases you don't need (spending $1 to save $0.37 destroys cash flow)
• Prepaying expenses beyond 12 months (IRS disallows)
• Income deferral that creates operational problems
• Round-number purchases without business justification

The discerning approach: Each move should make business sense independent of tax benefits. Tax optimization enhances smart decisions — it doesn't drive poor ones.

Your 9-Day Execution Plan

December 22nd-23rd:

• Calculate current tax position and identify opportunities
• Contact equipment vendors about immediate inventory
• List January-March expenses available for prepayment

December 26th-27th:

• Execute equipment purchases with confirmed delivery
• Process expense prepayments with documentation
• Coordinate final retirement deferrals through payroll

December 30th-31st:

• Confirm equipment delivery and operational status
• Complete charitable contributions and estimated payments
• Document all transactions for tax preparation

The Real ROI of December Tax Moves (And Why Starting Earlier Is Better)

These strategies won't revolutionize your tax situation, but they deliver meaningful savings when executed with precision. For businesses earning $400,000+ in profit, combining 4-5 moves could save $10K-$25K+ in taxes.

But here's what we know from working with hundreds of business owners: Companies that plan these moves in October or November — not December — save more and stress less. Most business owners only use, at most, half the tools available. The tax code is complex, and less-commonly used levers can yield big returns when used correctly.

The Year-Round Tax Planning Advantage

Earlier Q4 planning saves thousands. Q1 planning transforms everything.

January and February are when you build the systems, entity structures, and strategic frameworks that compound throughout the year. December moves are reactive. Early Q4 planning is better. First quarter strategy is transformative.‍

This year's lesson for next year: Start your 2026 tax strategy in January, not December. Build systems that support strategic decisions before you're operating under deadline pressure.‍

We're scheduling strategic January consultations to help business owners close out 2025 taxes and build proactive systems for 2026. The businesses that move from December scrambling to first-quarter strategic planning consistently outperform those stuck in reactive mode.

Schedule your 2026 tax planning consultation before January 15th to ensure you never face another December 22nd scramble again.

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