As the year draws to a close, it’s time to maximize your 2026 tax deductions and other planning opportunities — including turning investment losses into a tax benefit through tax-loss harvesting. Here’s a brief checklist of moves to help reduce your tax exposure.
TAX-LOSS HARVESTING
Selling under-performing investments before year’s end lets you offset realized capital gains dollar-fordollar. If losses exceed gains, deduct up to $3,000 against ordinary income and carry the remainder forward. Avoid the washsale rule: don’t repurchase a substantially identical security within 30 days, or the loss will be disallowed.
BUSINESS EXPENSES
Reduce your 2026 tax bill by pre-paying certain business expenses before year’s end — renewing subscriptions or paying ahead for advertising, insurance premiums, rent, and licenses that don’t extend more than 12 months.
EQUIPMENT
Repair broken equipment and put new equipment into service by year’s end. Deduct the full cost of qualified equipment up to $2,560,000 for tax year 2026, phasing out once purchases exceed $4,090,000.
MAXIMIZE QBI DEDUCTIONS
Owners of S corporations, partnerships, and sole proprietorships may deduct up to 20% of qualified business income (QBI). For 2026, eligibility phases out at $201,750 for single filers and $403,550 for joint filers.
Talk with your advisor about finding additional deductions.