Reduce your taxes by using these tax deduction tips before the end of the year.
It's October. Your Q4 revenue is looking strong. Maybe you've had your best year ever as a fitness coach.
But here's the reality: if you're making $75,000-$150,000 and you haven't done any tax planning, you're about to write a check to the IRS for $18,000-$35,000 in April. That's money that could have gone toward new equipment, marketing, your retirement, or your family.
The good news? You still have time. The moves you make before December 31st, 2025 can literally save you $4,000-$15,000 in taxes.
At Fitness Taxes, we specialize in year-end tax planning for fitness professionals. Every October through December, we help powerlifting coaches, gym owners, and online trainers implement strategic moves that drastically reduce their tax liability.
But you have to act now. January 1st is too late.
Here's your complete Q4 tax playbook.
The strategy:
Purchase equipment and make business investments before December 31st instead of waiting until January.
How it works:
Business expenses reduce your taxable income in the year you pay for them. Every dollar of business expenses saves you approximately $0.30-$0.45 in taxes (federal, state, and self-employment tax combined).
If you're planning to buy a $3,000 power rack in January anyway, buying it in December instead saves you $900-$1,350 in taxes on your 2025 return.
At Fitness Taxes, we help coaches identify equipment purchases they're planning anyway and strategically time them for maximum tax benefit. A bodybuilding coach we worked with saved $4,200 in taxes simply by moving $14,000 in planned equipment purchases from January 2026 into December 2025.
What to buy:
The trap to avoid:
Don't make purchases solely for tax deductions. Buy things you actually need for your business. The tax savings are a bonus, not the primary reason.
We counsel Fitness Taxes clients on this constantly: "Don't let the tax tail wag the business dog." If you need equipment, buy it and enjoy the tax benefit. But don't buy equipment you don't need just to get a deduction—you're still spending real money to save a fraction in taxes.
Section 179 bonus:
Under Section 179, you can immediately expense up to $1,160,000 in qualifying equipment purchases in 2025 (indexed annually for inflation). For most fitness coaches, this means any equipment purchase can be fully deducted in the year of purchase rather than depreciated over multiple years.
A gym owner we worked with purchased $45,000 in equipment in December 2024. Using Section 179, he deducted the entire $45,000 on his 2024 return, saving approximately $13,500 in taxes. Without proper planning, he would have depreciated that equipment over 7 years, delaying tax savings.
The strategy:
If you're currently operating as a sole proprietor or LLC taxed as a sole proprietor, converting to S-Corporation status can save you $4,000-$12,000 annually in self-employment taxes.
How it works:
Sole proprietors pay 15.3% self-employment tax (Social Security and Medicare) on all net business income up to $176,100 in 2025 (the Social Security wage base).
S-Corporation owners pay themselves a reasonable salary (subject to payroll taxes) and take the rest as distributions (not subject to self-employment tax).
Real example:
A fitness coach earning $100,000 net income as a sole proprietor pays $15,300 in self-employment tax.
The same coach as an S-Corp pays themselves a $60,000 salary (reasonable for their industry role) and takes $40,000 in distributions. Self-employment tax on the $60,000 salary: $9,180. Tax savings: $6,120 annually.
At Fitness Taxes, we help coaches determine optimal S-Corp salary levels based on IRS guidelines for reasonable compensation. We've structured dozens of S-Corp conversions for powerlifting coaches, online trainers, and gym owners, typically saving them $4,000-$12,000 annually.
Important deadline:
To elect S-Corporation status for 2025, you must file Form 2553 by March 15, 2025. But you need to decide NOW so you can implement proper payroll systems and run payroll in December.
The complexity:
S-Corps require payroll processing, quarterly payroll tax filings, annual informational returns, and careful attention to reasonable compensation rules. This isn't DIY territory.
At Fitness Taxes, we handle complete S-Corp setup including entity formation, payroll implementation, reasonable salary determination, and ongoing compliance for fitness professionals. We make it simple so you get the tax savings without the headaches.
A CrossFit gym owner came to us in November 2024 making $140,000 net income as a sole proprietor. We quickly established his S-Corp, implemented payroll in December, and saved him $8,400 in self-employment taxes for that year alone. Over five years, that's $42,000 in tax savings.
The strategy:
Contribute to tax-advantaged retirement plans before December 31st (or April 15th for certain plans) to reduce your 2025 taxable income.
Options for fitness coaches:
SEP IRA: You can contribute up to 25% of your net self-employment income, with a maximum contribution of $69,000 for 2025. SEP IRA contributions can be made up to your tax filing deadline (including extensions), but deciding now allows for better planning.
Solo 401(k): Allows both employee deferrals ($23,000 in 2025, or $30,500 if age 50+) and employer profit-sharing contributions (up to 25% of compensation). Total contribution limit: $69,000 ($76,500 if age 50+).
SIMPLE IRA: If you have employees, SIMPLE IRAs allow $16,000 in employee deferrals ($19,500 if age 50+) plus either 2% nonelective or 3% matching employer contributions.
The tax savings:
A fitness coach earning $100,000 who contributes $20,000 to a SEP IRA saves approximately $6,000-$8,000 in federal and state taxes.
Why this matters now:
While SEP IRA contributions can be made until tax filing deadlines, Solo 401(k) plans must be established by December 31st to be used for the current tax year. You can make contributions until the filing deadline, but the plan itself must exist before year-end.
At Fitness Taxes, we help fitness professionals choose the optimal retirement plan structure based on income, business structure, and long-term wealth-building goals. A powerlifting coach we worked with established a Solo 401(k) in December and contributed $35,000 for the year, saving $10,500 in taxes while building retirement savings.
The strategy:
If you're close to but not exceeding the standard deduction ($15,000 for single filers, $30,000 for married filing jointly in 2025), bunch deductible expenses into alternating years to maximize tax benefits.
How it works:
Pay two years of property taxes in one year, prepay January's mortgage interest in December, make charitable contributions in concentrated years rather than spreading them out.
Why fitness coaches should care:
Many fitness professionals have significant business expenses that are already deducted on Schedule C. But personal itemized deductions (mortgage interest, property taxes, charitable contributions, state income taxes) compete with the standard deduction.
If you're at $13,000 in itemizable deductions, you'll just take the $15,000 standard deduction anyway. But if you bunch expenses and reach $25,000 in one year, you benefit from the additional $10,000 in deductions.
The limitation:
State and local tax (SALT) deductions are capped at $10,000 regardless of what you actually pay. This limits the benefit of bunching for high-income earners in high-tax states.
At Fitness Taxes, we run the numbers both ways to determine if bunching makes sense for your specific situation. For some clients, it saves thousands. For others with maxed-out SALT deductions, it provides minimal benefit.
The strategy:
Ensure you've paid enough estimated taxes throughout 2025 to avoid underpayment penalties.
How it works:
Self-employed fitness coaches must pay quarterly estimated taxes covering income tax and self-employment tax. The final 2025 estimated payment is due January 15, 2026.
The penalty:
If you underpay, the IRS charges interest and penalties. The current underpayment penalty rate is approximately 8% annually (varies quarterly based on federal short-term rate plus 3 percentage points).
How much to pay:
You must pay either 90% of your 2025 tax liability or 100% of your 2024 tax liability (110% if your 2024 AGI exceeded $150,000/$75,000 for married filing separately) to avoid penalties.
Why this matters in Q4:
If you had an unexpectedly successful year and your quarterly payments were based on last year's income, you might owe significantly more. Making an additional Q4 payment can help you avoid penalties and reduce the April shock.
At Fitness Taxes, our quarterly tax planning includes estimated tax calculations ensuring you never underpay or overpay. We've saved clients thousands in underpayment penalties simply by projecting year-end tax liability accurately in Q4 and making additional payments when needed.
A bodybuilding coach had a breakout year in 2024, earning $140,000 compared to $75,000 in 2023. His quarterly payments were based on 2023 income. Without our Q4 intervention, he would have faced $3,200 in underpayment penalties. We calculated the additional payment needed and saved him that entire penalty amount.
The strategy:
If you're a sole proprietor and you have children, you can employ them in your business and deduct their wages as a business expense. Better yet, children's wages are not subject to Social Security, Medicare, or federal unemployment taxes if they're under 18.
How it works:
Your child works in your fitness business doing age-appropriate tasks: managing social media, organizing equipment, filing receipts, updating spreadsheets, helping with content creation.
You pay them through legitimate payroll. Their wages are a business deduction for you. If they earn less than the 2025 standard deduction ($15,000 for single filers), they owe no federal income tax.
Real example:
You hire your 16-year-old to manage your fitness business's Instagram account and organize client files. You pay them $6,000 for the year. You deduct $6,000 as a business expense, saving approximately $1,800-$2,400 in taxes. Your child owes no federal income tax because they're under the standard deduction threshold. The family keeps the full $6,000 shifted from your higher tax bracket to their zero tax bracket.
Critical requirements:
The IRS specifically allows this, but you must follow the rules precisely.
At Fitness Taxes, we help fitness professionals structure family employment arrangements correctly. One online coach hired his two teenagers to manage social media and edit training videos. He paid them $5,000 each ($10,000 total), deducted the full amount, and saved $3,000 in taxes while teaching his kids valuable business skills.
The strategy:
If you use cash-basis accounting (which most fitness coaches do), expenses are deductible when paid, not when incurred. Prepaying January expenses in December moves the deduction into 2025.
What to prepay:
The savings:
Every $1,000 in prepaid expenses saves you approximately $300-$450 in 2025 taxes (depending on your tax bracket and self-employment tax status).
The limitation:
You generally can't prepay more than 12 months of expenses. Prepaying three years of web hosting won't fly. But prepaying one year is legitimate.
At Fitness Taxes, we review clients' recurring expenses in November and identify prepayment opportunities. A gym owner prepaid $8,400 in insurance premiums in December instead of waiting for January billing. This moved the deduction into the higher-income year, saving him $2,520 in taxes.
The strategy:
Ensure your current business structure (sole proprietor, LLC, S-Corp, partnership) still makes sense for your income level and future plans.
Why this matters:
December planning:
If you're converting to an S-Corp for 2026, establish the entity in December so you're ready to file Form 2553 by the March 15th deadline.
At Fitness Taxes, we conduct business structure reviews every Q4 to ensure clients are in the optimal entity type for their current income level. We've helped dozens of coaches transition from sole proprietor to S-Corp as their businesses grew, capturing thousands in tax savings.
The strategy:
Before year-end, measure and document your home office space, business use of vehicles, and business versus personal use of equipment.
Why this matters:
Home office deductions require specific measurements. Vehicle deductions require usage percentages. Equipment depreciation requires business use determination. Having this documentation prepared before tax season makes filing easier and audit defense stronger.
What to document:
At Fitness Taxes, we provide clients with documentation checklists in November so everything is ready for tax season. This simple step has prevented countless audit problems and ensured clients capture every legitimate deduction.
The strategy:
If you've been tracking expenses haphazardly (or not at all), implement proper bookkeeping systems before year-end.
Why December is critical:
Tax preparation begins in January. If your books are a mess, your CPA will spend billable hours cleaning them up instead of finding tax savings. Or worse, you'll miss legitimate deductions because you can't find documentation.
The system:
At Fitness Taxes, we provide complete bookkeeping setup and ongoing monthly services specifically designed for fitness professionals. Our clients save 250+ hours annually and capture thousands in deductions they would have missed.
A powerlifting coach came to us in November with a shoebox of receipts and zero bookkeeping. We implemented proper systems in December, caught up on the entire year's bookkeeping, and discovered $14,000 in legitimate expenses he'd forgotten about. That translated to $4,200 in tax savings—more than paying for our services multiple times over.
Our parent company, Asnani CPA, has been providing bookkeeping and tax services for years, and Fitness Taxes applies that expertise specifically to the unique needs of fitness professionals.
The strategy:
If you run holiday promotions or annual membership campaigns in December, understand how timing affects your taxes.
How it works:
Cash-basis accounting: Income is taxable when received. If you collect $20,000 in December 2025 for services you'll provide in January-March 2026, that $20,000 is taxable in 2025.
Accrual-basis accounting: Income is taxable when earned, regardless of when payment is received.
The planning opportunity:
If you're having a very high-income year, consider delaying December promotions until January so revenue hits 2026 instead of 2025. Conversely, if you're having a lower-income year, accelerate revenue into December.
The ethical boundary:
You can't artificially manipulate timing to evade taxes. But legitimate business decisions about when to run promotions and bill clients are perfectly legal tax planning.
At Fitness Taxes, we help coaches think strategically about year-end revenue timing. An online coach was planning a big Black Friday promotion in November. After reviewing his year-to-date income, we realized he was already in a high tax bracket for 2025. We suggested delaying the promotion until January, shifting $35,000 in revenue to 2026 when he planned to take more business deductions. This strategic timing saved him approximately $10,500 in taxes.
The strategy:
If you itemize deductions, charitable contributions made by December 31st are deductible on your 2025 return.
How it works:
Cash donations are deductible up to 60% of your adjusted gross income. Non-cash donations (equipment, clothing) are deductible at fair market value up to 30% of AGI for appreciated assets.
The fitness angle:
Donate used equipment to high school athletic programs, youth sports organizations, or community fitness centers. Deduct the fair market value.
The documentation requirement:
Keep receipts for all donations. For non-cash donations over $500, file Form 8283. For donations over $5,000, you need a qualified appraisal.
At Fitness Taxes, we help coaches document charitable contributions properly. A bodybuilding coach donated $3,000 worth of used equipment to a local youth center. We helped him determine fair market value, document the donation properly, and claim the deduction. This saved him $900-$1,200 in taxes while supporting his community.
If you're making over $60,000 as a fitness professional, the tax savings from proper Q4 planning typically exceed professional accounting fees by 3-5x.
The moves outlined here aren't complicated individually, but implementing them correctly, in the right combination, for your specific situation requires expertise.
Generic accountants won't know that powerlifting coaches have specific equipment needs that create Section 179 opportunities. They won't understand that competition travel for coaches is different from personal travel. They won't realize that your garage gym is actually legitimate business space if documented correctly.
At Fitness Taxes, we specialize exclusively in fitness professionals. We've seen hundreds of fitness coaching businesses. We know exactly which moves make sense for your income level, business structure, and goals.
We'll lower your taxes and do your accounting. We make it a breeze for you to focus on your business, knowing you've done everything possible to reduce taxes, get the most in deductions, file everything on time and do things the right way to avoid penalties and problems.
This Week:
Before November 30th:
December 1-15:
December 16-31:
Here's what happens if you ignore Q4 tax planning:
You file your 2025 tax return in April 2026. You discover you owe $22,000. You don't have $22,000 sitting around because you didn't plan for this. You set up a payment plan with the IRS, paying interest and penalties.
Meanwhile, your competitor who planned properly saved $8,000 through strategic Q4 moves. They used that $8,000 to invest in marketing, attracting 15 new clients worth $30,000 in annual revenue.
Over five years, procrastination on tax planning costs you $40,000 in unnecessary taxes plus the lost opportunity cost of what you could have done with that money.
Procrastination leads to OVERPAID TAXES. We see it every single day at Fitness Taxes. Coaches who wait until March to start thinking about taxes end up paying thousands more than necessary because they missed the December 31st deadline for strategic moves.
January 1st is a hard deadline. Tax law doesn't care that you were busy training clients or that you meant to make that equipment purchase. What happens before December 31st affects your 2025 taxes. What happens after affects your 2026 taxes.
Most fitness professionals making $75,000-$150,000 can save $4,000-$15,000 through proper Q4 planning. But you must act now.
Schedule your Q4 tax planning consultation with Fitness Taxes today. We'll review your specific situation, identify your biggest opportunities, and implement the strategies that make sense for you before December 31st.
We're fitness tax specialists. We work exclusively with powerlifting coaches, bodybuilding professionals, CrossFit gym owners, and online fitness entrepreneurs. We know your industry inside and out.
Don't leave thousands of dollars on the table. Don't write a massive check to the IRS in April when you could have reduced it with December planning.
Contact us now. Let's make sure 2025 is your most tax-efficient year yet.
Remember: We create stunning financial results for our customers. Whether you're making $60,000 or $250,000 a year, we'll often find thousands or even tens-of-thousands in tax savings. NOBODY knows taxes and the online fitness coaching industry better than we do.
Our average clients save $6,500 per year in taxes and 250 hours per year in time. That's real money back in your pocket and real time back in your life to focus on training clients and building your business.
We're your secret weapon. We'll help you align your business and lifestyle to be as tax efficient as possible. Maximize your wealth and grow your business with Fitness Taxes.
Our parent company, Asnani CPA, has been serving business owners for years, and Fitness Taxes is our specialized division exclusively serving the fitness industry. We bring decades of accounting expertise specifically tailored to powerlifting coaches, bodybuilding professionals, gym owners, and online fitness entrepreneurs.
Don't wait. Don't waste any more time or money. Act before December 31st.
Schedule your Q4 tax consultation now and let's get to work saving you thousands in taxes.
