It’s late December.
You didn’t get around to tax planning in Q3.
You meant to open that Solo 401(k, buy that equipment, or adjust your W-2 salary — but life and business got in the way.
Good news: You’re not too late.
At Washington & Co. Inc — Strategic Tax & Advisory, we help high-income founders lock in last-minute tax-saving moves that still work — even with just days left in the year.
Here’s your final checklist of year-end plays that can still reduce your 2025 tax bill — legally and effectively.
1. Max Out Pre-Tax Retirement Contributions
Still Time? Yes — if your payroll system or custodian is fast.
- Solo 401(k): Contributions must be made by year-end for employee portion
- SEP IRA: You have until tax filing, but earlier is better
- Cash Balance Plan: Only works if already set up — but funding can still happen
- IRA / HSA: You have until April, but Q4 planning allows for better cash flow
If you haven’t hit your limits, push final contributions through before December 31.
2. Issue Year-End Bonuses (With Strategy)
Bonuses aren’t just nice for team morale — they can also:
- Reduce your business’s taxable income
- Fund retirement plans
- Help optimize S Corp W-2 ratios
- Trigger fringe benefit eligibility (like 401(k) match, group insurance)
Tip: Use elevated withholding on year-end payroll to “catch up” on estimated tax shortfalls (counts as if paid evenly throughout the year).
3. Buy & Place in Service Bonus-Eligible Assets
Bonus depreciation is still at 60% in 2025 — but only if assets are placed in service before midnight December 31.
That means:
- Purchased
- Delivered
- Ready and available for use
- Not just ordered or paid for
Think: equipment, computers, vehicles (over 6,000 lbs), tools, software, or commercial improvements.
4. Clean Up Your Compensation Strategy
Especially for S Corps, now’s the time to:
- Review total wages paid in 2025
- Adjust final payroll if you’re under the “reasonable compensation” threshold
- Shift income into W-2 vs distributions for 199A or retirement eligibility
- Document any bonuses or adjustments made in Q4
Even if it’s late — strategic changes now can prevent audit issues and unlock deductions.
5. Run a Final Credit Audit
Still time to capture:
- R&D Credit (as long as activity is documented and expenses are booked)
- WOTC for hires made before December 3
- Energy Credits for real estate installs completed before year-end
- Business Vehicle Credits for qualifying EVs and commercial trucks
Credits may require certification, invoices, or proof of service — gather everything now.
Real Example: $41K Saved Between December 15–31
One of our clients — a consulting firm with $600K+ in profit — had done zero planning until mid-December.
We helped them:
- Push a $27,000 employee contribution into a Solo 401(k)
- Buy and place in service a qualifying SUV for $74K (60% bonus depreciation)
- Issue a year-end $20,000 W-2 bonus to correct undercompensation
- Adjust payroll withholding to eliminate a $9,200 estimated tax penalty
Final result: $41,200 in tax savings — locked in with 11 days to spare.
Last-Minute Action Plan
- Review your current retirement plan contributions
- Run a payroll adjustment or bonus if needed
- Buy and place in service any final assets
- Process final credit-eligible transactions (R&D, WOTC, energy, EVs)
- Upload receipts, contracts, and documentation to your tax pro
Book a Rapid Year-End Strategy Call
Still time to win — but not much.
Let us help you make your final 2025 tax-saving moves before the buzzer. We’ll model, implement, and document it — fast.
Schedule your Year-End Tax Strategy Session with Washington & Co. Inc — Strategic Tax & Advisory today.