By Randy Brunson
SUWANEE, Ga. | As we wrap up 2025, a few tax planning ideas for 2025 and 2026.
Find organizations whose cause matters to you. Write a check or make an online donation. If you give appreciated stock, select the stock which has the highest percentage gain.
If you have had a major liquidity event, such as the sale of a business, consider opening a Donor Advised Fund. Two good resources in Georgia include the Community Foundation of Northeast Georgia and National Christian Foundation. Get the tax deduction this year, then decide on the ultimate charity later.
If you are a W2 employee, check to see if your employer has a matching gift option.
70.5 years old or older? You may give up to $100,000 annually from your IRA directly to a qualifying charity, without such distribution being income to you. This is known as a Qualified Charitable Distribution.
For 2025, the combination of sales and local taxes, mortgage interest and charitable gifts (the big three itemized deductions) needs to exceed the standard deduction of $31,500 for those married, filing jointly, in order to itemize.
Gain/Loss Matching: Review your investment portfolio for realized gain, especially if you own mutual funds. Short/long gain distribution information is on the fund website. If you have significant realized gain, see if you have other positions which can be sold at a loss to offset these gains.
The state also allows tax credits for business owners based on a) where the business is located, b) who you hire, and c) how you train your employees. Given the time frames involved, this is likely a 2026 tax benefit for those of you who own businesses.
Retirement Plans: You still have time to set up a retirement plan for your business for 2025, whether profit-sharing or cash balance plan. If you are self-employed, this includes a SEP IRA or SoloK plan. Looking to add a 401(k) feature? Best to make it effective in 2026.
Cost Segregation: Own commercial real estate? Cost segregation allows you to create different (and shorter) depreciation schedules for FF&E (furniture, fixtures, and equipment) than for building and land. Shorter depreciation schedules increase current year deductions.
Note that these few entries just scratch the surface of good planning opportunities. And provide an overview, rather than an in-depth analysis.
Looking Into 2026: The new year will likely offer a host of opportunities. How do you approach the new year, and make decisions regarding the uses of time, resources, your personal strengths, and capitalizing on these opportunities? How do you allocate for business and personal reserves, build reserves to capitalize on opportunities, assure that you have funds set aside for taxes? How do you allocate time well among personal relationships, business responsibilities, and charitable/volunteer endeavors?
Good questions all. We have a Weekend Planning Guide as well as both a Simple and Advanced Decision-Making Matrix, all of which have value. And can be especially valuable for those of you who own businesses and/or have complex financial statements. If you would like copies of them, let us know and we will send them to you.
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