Top 10 Things Business Owners Should Do in Q4 for Tax Planning

The fourth quarter is where tax savings are won or lost. Once January 1 hits, most of your 2026 planning options disappear. Here's what smart business owners are doing before year-end:

1. Buy that equipment now. 2026 is one of the most tax-advantaged years ever to invest in equipment. The One Big Beautiful Bill Act restored 100% bonus depreciation permanently and raised the Section 179 expensing limit to $2.56 million (phasing out at $4.09 million). But the asset must be placed in service — installed and working — by December 31. A signed quote doesn't count. If you've been putting off a purchase, the clock is ticking.

2. Project your year-end income. You can't plan what you haven't measured. Run your profit-and-loss through at least November, project December, and know where you stand. Every decision below depends on whether you're having a great year (shift deductions into 2026) or a lean one (maybe defer).

3. Time your income and expenses. Cash-basis businesses have real power in December: delay invoicing late-December work into January to defer income, and prepay January expenses (rent, supplies, insurance) before year-end to accelerate deductions. Small timing moves, real tax dollars.

4. Max out retirement contributions. Employer contributions to SEP IRAs and Solo 401(k)s are among the biggest deductions available to owners — and for 2026, every dollar you contribute is a dollar off your taxable income. Employee elective deferrals to a 401(k) must come out of 2026 paychecks, so don't wait until December 31 to start the conversation.

5. Check your estimated payments. Underpayment penalties are the most avoidable tax cost there is. If your income ran hotter than expected this year, your Q4 estimated payment (due January 15) may need to go up. A quick projection now beats a penalty notice in the spring.

6. Harvest investment losses. If the business or you personally hold investments sitting at a loss, selling before year-end lets you offset capital gains — and up to $3,000 of ordinary income. Just watch the wash-sale rule if you plan to buy back in.

7. Give strategically. Charitable contributions still need to happen by December 31 to count for 2026. C corporations can deduct them directly; pass-through owners generally claim them personally. If you're on the fence about bunching several years of giving into one, this is the year to run the math.

8. Revisit your entity structure and owner compensation. With the 20% qualified business income (QBI) deduction now permanent — plus a new $400 minimum deduction — 2026 is the year to confirm your S corporation salary is still reasonable and your entity choice still fits. Getting this wrong is expensive; getting it right is free money.

9. Clean up the books and get 1099-ready. Reconcile every account now, while the year is still fresh. And chase down W-9s from every contractor you paid $600 or more — doing it in October beats begging in January when 1099s are due.

10. Sit down with your accountant before December. Not in March, when it's too late to change anything. A one-hour planning meeting in November can save more than a full year of bookkeeping cleanup. That's literally what we're here for.

The Bottom Line — Guiding Your Business. Strengthening Your Bottom Line. Call us at 419-472-2841 before the year runs out.