The last quarter of the year has a way of sneaking up on us. Between the holidays, year-end closings and the general rush of Q4, tax and financial planning can slip to the bottom of the list – – right up until the moment it’s too late to do anything about it.
The good news: a handful of focused moves between now and December 31 can make a meaningful difference in your 2026 tax picture and help set you up for a stronger 2027. Here’s where we focus our attention with clients:
- Run Your 2026 Tax Projection
Don’t wait until April to find out where you stand. A year-end tax projection gives you time to review income, capital gains, withholding and estimated payments while there is still an opportunity to act. We use projections not simply to estimate what a client might owe, but to identify planning opportunities before the calendar runs out.
- Maximize Retirement Contributions
Year-end is a good time to review your 401(k) and other retirement plans to make sure you’re taking full advantage of the opportunities available to you. For those over the age of 50, catch-up contributions may provide additional room. If you’ve had a particularly strong income year, maximizing tax-deferred retirement savings can be an effective way to reduce current taxable income while continuing to build long-term savings.
- Review Capital Gains & Losses
Higher interest rates have created an interesting opportunity in some portfolios. Bonds and bond funds purchased when rates were lower may now be sitting at meaningful losses and because fixed-income positions can be substantial, those losses may provide valuable tax benefits.
We review these positions alongside each client’s tax projection. Where appropriate, we may sell an investment to realize a loss and reinvest the proceeds, maintaining the overall investment strategy while potentially using the loss to offset gains elsewhere. In other situations, intentionally realizing gains may make sense. The objective is to make the investment and tax decisions together.
- Make Year-End Charitable Gifts
If charitable giving is part of your plan, how you give can matter as much as how much. Rather than simply writing a check, consider whether donating appreciated investments could provide a greater tax benefit. A donor-advised fund can also be useful for families who want to make a larger charitable contribution this year while deciding which charities will ultimately receive the money over time.
- Review Your Financial Plan for 2027
Tax planning shouldn’t happen in isolation. As the year closes, step back and look at the bigger picture. Are your savings and investments still aligned with your goals? Are there major changes ahead, like a home purchase, business transaction, retirement or another significant life event that should reshape your plan for next year?
The Bottom Line
The best year-end planning doesn’t start with a list of tax deductions. It starts by understanding where you are, running the numbers and then looking across your taxes, investments and financial plan for opportunities to act before December 31.
That’s how we approach year-end planning at Bayside Tax & Wealth: not as separate tax and investment conversations, but as one coordinated financial plan.
If you’d like help working through your own year-end planning, please reach out. We’re here to help you close out 2026 with a clear picture of where you stand and a plan for 2027.
Visit baysidetaxandwealth.com for more information.
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