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Year-End Tax Moves for 2026: What Business Owners Can Still Do Before December 31
Oct 17, 2026 · @Lymer Jover
Your 2026 tax bill is mostly decided by now. Mostly. Between today and December 31, there is still a short window where the right moves can legally lower what you owe in April. After that window closes, your tax preparer can only report what happened.
Here are the moves worth reviewing before the year ends.
Some Deadlines Arrive Before December 31
Not every year-end strategy runs on the calendar's deadline. Strategies that depend on outside providers, such as solar energy investments, often have their own cut-off dates. The submission deadline for the 2026 tax year is November 15, because the equipment must be delivered and placed in service before year-end. If one of these strategies fits your situation, the decision needs to happen weeks earlier than most people expect.
Time Your Equipment and Vehicle Purchases
If your business plans to buy equipment, machinery, or a qualifying vehicle, timing matters. Under the 2025 tax law, 100% bonus depreciation is back permanently for qualifying property acquired after January 19, 2025. The full cost may be deductible this year, but only if the asset is placed in service by December 31. Buying it in January moves the deduction to next year.
Maximize Your Retirement Contributions
Retirement plans remain one of the most reliable ways to reduce taxable income. For 2026, the 401(k) employee contribution limit is $24,500, with an additional $8,000 catch-up for those 50 and older, and a higher catch-up of $11,250 for those ages 60 to 63. Combined employer and employee contributions can reach $72,000.
One change to know: starting in 2026, if you earned more than $150,000 in FICA wages last year, your catch-up contributions must go in as Roth. Plan your cash flow accordingly.
Review Your S-Corp Salary Before the Last Payroll
If you operate as an S-Corp, your salary should be reasonable for the work you do. Too high, and you overpay payroll taxes. Too low, and you invite scrutiny. The final payroll of the year is your last chance to adjust it for 2026.
Rethink Your Charitable Giving
Charitable deductions work differently starting this year. If you itemize, only the portion of your giving above 0.5% of your adjusted gross income is deductible. If you take the standard deduction, you can now deduct up to $1,000 in cash gifts, or $2,000 if married filing jointly.
For larger givers, bunching several years of donations into one year, often through a donor-advised fund, can help you clear the floor and get more value from each gift.
Document Your Augusta Rule Meetings
If your business rented your home for legitimate business meetings this year, make sure the paperwork is complete before year-end: dates, agendas, attendees, and a fair market rent comparison. Under Section 280A, the rent can be deductible to the business and tax-free to you, but only if it is properly documented.
Look at Cost Segregation for Properties Placed in Service This Year
Real estate investors who bought or improved property in 2026 should consider a cost segregation study. It identifies building components that can be depreciated faster, and combined with bonus depreciation, it can front-load deductions into this year.
Manage the Timing of Income and Expenses
If your business uses cash-basis accounting, you have some control over which year income and expenses land in. Paying certain expenses before December 31, or invoicing in early January, can shift taxable income when it makes sense for your situation.
Start Your 2027 Plan Now
The best year-end move is not having to scramble next December. A year-round strategy means decisions get made when they still matter, not after the year has closed.
Ready to See What Still Applies to You?
Some year-end strategies close in mid-November. Book a free 30-minute strategy consultation now, and we will review where you stand and identify which moves still fit your situation before those windows close.
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