As the leaves start to turn and the air gets a little crisper, most people are thinking about football, fall colors, and maybe one too many pumpkin lattes. Very few are thinking about taxes. After all, that’s something we usually associate with spring—right?
But if you wait until March or April to think about taxes, you’ve missed most of your opportunities to do anything about them. That’s because effective tax planning happens before December 31. Tax preparation is what happens in the spring. Tax planning is what happens now.
While Transcend Wealth isn’t a tax firm, we often work hand in hand with clients’ CPAs to help tie everything together. When your financial plan, investment strategy, and tax picture align, it can make a meaningful difference in the long run. So as 2025 winds down, here are seven smart moves to discuss with your CPA or tax professional before year-end.
Before crunching any numbers, step back and look at the big picture. What do the next five to ten years look like for you? Are there major expenses ahead—travel, a home renovation, helping family, or philanthropic goals? Laying out your timeline and intentions helps your tax professional make the right technical decisions around timing income, deductions, or realizing gains. Your financial plan should steer your tax plan—not the other way around.
If you’re still working, one of the simplest and most effective tax strategies is maximizing contributions to your retirement accounts.
For 2025, you can contribute up to $23,500 to your 401(k) ($31,000 if you’re 50 or older). These contributions must be made by December 31.
IRA contributions, on the other hand, can be made up until April 15, 2026—but don’t wait. Getting those dollars invested now gives them more time to grow, and it reduces the risk of forgetting come tax season. The IRA contribution limit for 2025 is $7,000, plus an extra $1,000 if you’re 50 or older.
Charitable giving can be a meaningful way to express your values and reduce taxes at the same time. If you itemize deductions, gifts to qualified charities can lower your taxable income.
If you’re age 70½ or older, you can donate up to $108,000 directly from your IRA to a qualified charity as a Qualified Charitable Distribution (QCD). The gift is tax-free and counts toward your Required Minimum Distribution (RMD) if you’re 73 or older. It’s a powerful way to give strategically while keeping taxable income lower.
When markets fluctuate, there can be opportunities hidden in the volatility. Selling investments at a loss can offset gains elsewhere in your portfolio—a strategy known as tax-loss harvesting. Done well, this can boost after-tax returns over time.
But be careful. The IRS “wash-sale rule” prohibits repurchasing the same or substantially identical investment within 30 days before or after the sale. And don’t sell a quality investment just for the tax benefit. As with most financial decisions, strategy and discipline matter more than speed.
The type and timing of your investment income can significantly affect your tax bill. Capital gains, qualified dividends, and interest income are each taxed differently. Thoughtfully deciding when to realize gains—or whether to defer them—can help reduce your future tax burden. This is an area where coordination between your advisor and tax professional can make a meaningful difference.
No one ever wants to deal with an audit—but if you do, clean documentation makes all the difference. Now is a good time to review how your records are stored and organized. Make sure you know which documents are most important and how long to keep them. Your CPA can help you set up a system that’s easy to maintain.
Finally, before the holidays take over, ask your tax professional to run a quick projection for 2025. You’ll want to know:
This step can reveal whether it makes sense to accelerate or defer income, harvest losses, or execute a Roth conversion before year-end. It’s also one of the best ways to avoid surprises come filing season.
Before the year slips away, take some time to connect with your tax professional and review these items. Thoughtful planning in Q4 can save you money, simplify your life, and help you enter 2026 with greater clarity and confidence.