End-of-Year Tax Planning

🧾 End-of-Year Tax Planning: Why It’s Worth Your Attention

As the calendar inches closer to year-end, it’s a great time to take stock of your financial situation and make smart moves that could impact your tax bill. Taking a proactive approach to tax planning can lead to meaningful benefits for both individuals and business owners, especially when it comes to optimizing deductions, managing income effectively, and staying ahead of upcoming changes in tax regulations.

📌 What Is End-of-Year Tax Planning?

End-of-year tax planning is all about understanding where you stand financially and identifying opportunities before December 31st. Whether you’ve sold a home, changed jobs, had a child, or made investment moves, these events can significantly affect your tax outcome. Waiting until April to address them often means missed opportunities and surprises.

💡 Commonly Missed Opportunities

Here are some key strategies that taxpayers often overlook:

• Roth Conversions
  With changing income thresholds, converting to a Roth IRA before year-end can be a smart move, especially for retirees.
• Tax-Loss Harvesting
  Selling investments at a loss to offset gains can reduce taxable income.
• Charitable Contributions
  With the SALT (State and Local Tax) deduction cap increasing from $10,000 to $40,000, itemizing deductions may now make sense for more taxpayers—making charitable giving even more impactful.
• Retirement Contributions
  While some contributions can be made until April, planning ahead helps with cash flow and strategy.

🏢 Tips for Business Owners

For business owners, the fundamentals remain consistent, but timing is everything:

• Accelerate vendor payments to capture deductions.
• Consider deferring income into the next year.
• Employ children (if appropriate) to shift income to lower tax brackets.
• Plan for retirement contributions now—even if you won’t fund them until next year.
• Make state tax payments in December to ensure deductibility.

🧠 Planning = Peace of Mind

One of the biggest mistakes people make is waiting until tax season to start thinking about taxes. By then, most decisions are locked in. Planning now gives you time to organize documents, understand your cash flow, and make strategic choices.

Even if you’re not making major changes, year-end planning helps you get organized so you’re not scrambling in January. You’ll know what to expect, what documents you need, and how much you might owe, giving you time to prepare.

📣 Final Thoughts

Whether you’re navigating life changes or managing a business, tax planning is your chance to take control. If you’ve had a major event this year, like buying or selling property, receiving severance, or welcoming a new family member, now is the time to connect with a tax advisor. Don’t wait until April to find out what you could have done.

Need help with your year-end tax strategy? Reach out today to schedule a planning session and make sure you’re ready for 2026.