With several tax provisions set to expire at the end of this year, now is the time to evaluate your financial situation and consider ongoing tax planning. Here are some key areas where early tax preparation may help you navigate potential changes.

Who should consider tax preparation?

1. Your Income Will Increase in 2025

If you’re expecting a job change, promotion, or other income increase, a tax planning session can help you prepare for potential tax rates and bracket adjustments. Understanding how your income will be taxed can help you make informed financial decisions.

2. You Typically Itemize Deductions

If you have significant deductions—such as state income taxes, real estate taxes, or mortgage interest—you may want to consider strategies to maximize deductions under current rules. Planning for potential changes can help optimize your tax situation.

3. You Have a Large Estate

The estate tax exemption is scheduled to decrease in 2026. If you have a sizable estate, consider reviewing your estate plan, including potential gifting strategies, to take advantage of the current exemption levels while they remain in place.

4. You Have Investments

Reviewing your investment portfolio can help ensure tax efficiency. Consider strategies such as tax-loss harvesting, maximizing contributions to tax-advantaged accounts, or adjusting your portfolio to align with potential future tax changes. If your tax rate will be lower in 2025 than in later years, selling appreciated assets strategically could be beneficial.

5. You Have Pass-Through Business Income

If you own a small business, review how changes to business tax deductions may affect your tax liability. Evaluating your business structure and income planning strategies can help you adapt to upcoming modifications.

Stay proactive with tax planning

Tax laws and regulations evolve, making it essential to stay informed and prepared. Reviewing your financial situation now allows you to move toward a smoother transition into the next tax year. Our team is here to help you develop a strategy tailored to your needs, ensuring you’re ready for whatever changes may come. Contact our RRBB advisors today.