Every year as December rolls in, most people focus on holidays, travel, and closing out unfinished tasks. But financially savvy individuals — the ones who consistently build wealth year after year — know something the average taxpayer doesn’t:
The biggest tax savings happen in the final weeks of the year.
If you want to legally lower your 2025 tax bill, put more money back in your pocket, and create long-term financial leverage, now is the time to take action. The moves you make before December 31st determine how much you keep and how much the IRS gets.
In this long-form guide, we break down the top year-end tax strategies explained by attorney Mat Sorensen, along with insights from KKOS Lawyers and Directed IRA — two of the most trusted names in tax strategy, asset protection, and self-directed retirement planning.
You’ll also find highly relevant video resources throughout the article, which you can embed directly into your blog to increase time-on-page, SEO value, and reader engagement.
Why Year-End Tax Planning Matters More Than Ever
Tax laws are changing, bonus depreciation is phasing down, and strategic entity planning is becoming a must — not a luxury. If you don’t act before the deadlines, you lose your ability to:
- Claim certain deductions
- Optimize your business structure
- Maximize retirement contributions
- Reduce or eliminate capital gains
- Leverage depreciation on assets
- Convert retirement funds tax-efficiently
Smart taxpayers don’t wait. They prepare early, act quickly, and work with professionals who know how to leverage every advantage the tax code offers.
👉 Start by scheduling a strategy session with KKOS Lawyers:
https://kkoslawyers.com/schedule-an-appointment/
1. Leverage Professional Year-End Tax Planning (Your Highest-ROI Move)
The number one way to save money on taxes is simple:
Talk to a tax attorney before December 31.
A single consultation with KKOS Lawyers can help you:
- Determine whether an S Corporation election will reduce your tax liability
- Identify which assets qualify for bonus depreciation
- Structure real estate investments through LLCs or partnerships
- Maximize retirement contributions before deadlines
- Review year-to-date income and estimate tax projections
- Execute last-minute tax-saving strategies
- Avoid common mistakes small business owners make
Most people don’t realize how much they overpay each year simply because they didn’t get professional guidance. One good strategy call can save thousands — sometimes tens of thousands.
👉 Book your consultation with KKOS Lawyers now:
https://kkoslawyers.com/schedule-an-appointment/
2. Maximize Bonus Depreciation Before It Phases Down Further
Bonus depreciation has been one of the most powerful tax-saving tools available to business owners and real estate investors. While it used to allow 100% write-offs, it is currently phasing down — meaning the sooner you act, the more you can deduct.
You may qualify to deduct large portions of assets such as:
- Work vehicles (including SUVs over 6,000 lbs)
- Machinery and tools
- Computers and office equipment
- Certain real estate improvements
- Furnishings for rental properties
If you’re planning to buy business assets anyway, doing it before year-end can drastically reduce your taxable income.
🎥 Embed Recommended Video:
Mat Sorensen – Year-End Tax Strategy Breakdown
3. Use the S Corporation Strategy to Reduce Self-Employment Tax
If you’re earning more than $40K–$50K in net profit and still operating as a sole proprietor, you may be overpaying taxes — significantly.
An S Corporation lets you:
- Split income into reasonable salary and profit distributions
- Reduce self-employment taxes
- Max out retirement contributions (especially Solo 401(k)s)
- Add credibility and protection to your business
This is one of the most common — and most misunderstood — tax strategies for small business owners.
KKOS Lawyers can handle:
- Entity formation
- S Corp elections
- Payroll setup
- Ongoing compliance
- Tax coordination with your accountant
👉 Learn whether an S Corp will save you thousands:
https://kkoslawyers.com/schedule-an-appointment/
4. Supercharge Your Retirement Wealth With a Self-Directed IRA (SDIRA)
A traditional IRA limits you to Wall Street.
A Self-Directed IRA (SDIRA) opens the door to powerful alternative investments:
- Real estate
- Private lending
- Crypto
- Startups
- Notes
- Private equity
- Land
- Rental properties
Directed IRA makes it fast and simple to set up.
Why a Self-Directed IRA Is a Game-Changer
- You can invest in what you know
- You keep more of your profits tax-free or tax-deferred
- You diversify beyond traditional stocks and mutual funds
- You control your retirement portfolio directly
🎥 Perfect Video to Embed:
How I Used My IRA to Buy THIS Rental Property
This video is highly relevant at this section of the blog.
👉 Book a call with an IRA Specialist: https://directedira.com/call
👉 Open your account online: https://directedira.com/open-accounts
5. Consider a Year-End Roth IRA Conversion
A Roth conversion is one of the most powerful long-term tax strategies available — but it must often be completed before December 31.
A Roth IRA offers:
- Tax-free growth
- Tax-free withdrawals
- No required minimum distributions (RMDs)
- Estate-planning advantages
By converting funds from a traditional IRA to a Roth, you’re trading a small tax bill now for zero tax burden later — often saving significantly over time.
🎥 Embed Recommended Video:
5 Roth IRA Benefits You Didn’t Know About
This video helps readers understand why Roth planning is such a big deal.
6. Learn the “Buy, Borrow, Die” Strategy the Wealthy Use to Pay Zero Taxes
Few tax strategies spark curiosity like this one.
Buy → Borrow → Die is a legal, IRS-approved method for building generational wealth while minimizing taxes.
Here’s how it works:
- Buy appreciating assets (real estate, businesses, etc.)
- Borrow against them tax-free
- Avoid selling, so you avoid capital gains
- Transfer assets to heirs, who receive a step-up in basis
No loopholes. No gimmicks. Just smart tax strategy.
🎥 Embed Recommended Video:
How To Use The ‘Buy Borrow Die’ Strategy to Build Wealth And Pay ZERO Taxes
This video will keep readers glued to the page.
7. Reduce Debt and Get Your Finances Organized Before Implementing Advanced Tax Strategies
Many tax strategies require:
- Clean books
- Clear separation of accounts
- Up-to-date payments
- Structured financial records
Debt can make financial planning harder — and the guide you uploaded provides important warning signs of financial distress, including:
- Relying on overtime or second income
- Making only minimum payments
- Owing more than seven creditors
- Falling behind on utilities or rent
- Using loans to pay for basic living expenses
If any of those hit close to home, take them seriously — but don’t panic. Getting organized now will make next year’s tax strategy far more effective.
8. Your Year-End Tax Strategy Checklist
Here is your quick-reference guide for what to do before December 31:
✔ Book your year-end tax planning consultation
✔ Make final business purchases to maximize deductions
✔ Set up or elect an S Corporation if you’re eligible
✔ Optimize your bookkeeping and categorization
✔ Open or contribute to your Self-Directed IRA
✔ Consider a Roth conversion while rates are low
✔ Review estimated tax payments
✔ Analyze real estate opportunities
✔ Finalize retirement contributions (Solo 401(k), SEP IRA, SDIRA)
You don’t need to do everything — but doing something is far better than doing nothing.
Relevant Educational Videos for Deeper Learning
If you prefer not to embed the videos within the article, you can include them at the bottom as a resource hub.
- How I used my IRA to Buy THIS Rental Property
https://www.youtube.com/watch?v=[ID] - 5 Roth IRA Benefits You Didn’t Know About
https://www.youtube.com/watch?v=[ID] - How To Use The ‘Buy Borrow Die’ Strategy to BUILD Wealth And Pay ZERO Taxes
https://www.youtube.com/watch?v=[ID]
(Provide the exact links and I’ll insert them properly.)
Final Thoughts: Your Best Financial Moves Happen Before December 31
The tax code rewards those who plan ahead.
It punishes those who wait.
Whether you’re:
- A business owner
- A real estate investor
- A side hustler
- A freelancer
- A W-2 employee wanting to build wealth
- Or someone looking to finally get ahead financially
…now is the time to act.
👉 Book your strategy session with KKOS Lawyers:
https://kkoslawyers.com/schedule-an-appointment/
👉 Open or expand your Self-Directed IRA with Directed IRA:
https://directedira.com/open-accounts
https://directedira.com/call
Make this the year you finally stop leaving money on the table.
