Year-End Tax Moves for Sarasota Families and Business Owners

Most people meet their tax professional in March. By then, 2026 is over and almost every chance to lower the bill has passed. Preparing a return records what already happened. Planning changes what happens.

That makes October through December the most valuable stretch of the year. The new federal tax law that took effect in 2025 added several deductions that only reward people who act before December 31. Here in Sarasota, where many of our neighbors are retirees, snowbirds, and small business owners, those changes matter more than usual.

Below are the moves we are reviewing with clients right now. If any of them sound like you, it is worth a conversation before the year runs out.

7 moves to make before December 31

1. If you are 65 or older, protect your new senior deduction

From 2025 through 2028, each taxpayer 65 or older can deduct an extra $6,000 — or $12,000 for a married couple when both qualify. It comes on top of the standard deduction. The catch is that it shrinks once your income passes certain limits. A large IRA withdrawal, a Roth conversion, or a big capital gain late in the year can quietly cost you part of it. Timing those moves is where planning pays off.

2. Take your required distributions, and consider giving straight from your IRA

If you are subject to required minimum distributions, the deadline is December 31 and the penalty for missing it is steep. If you are 70½ or older and give to charity, a qualified charitable distribution sends money directly from your IRA to the charity. It can count toward your RMD without ever showing up as taxable income — which also helps with the senior deduction limits above.

3. Rethink charitable giving under the 2026 rules

Starting this year, people who take the standard deduction can still write off some cash gifts to charity — up to $1,000 for single filers and $2,000 for couples. People who itemize face a new floor that trims a small slice of their giving. The right approach depends on which group you are in, and "bunching" several years of gifts into one can still make sense.

4. Look at a Roth conversion while rates are known

The current tax brackets were made permanent, so the guesswork about rates jumping in 2026 is gone. A partial Roth conversion in a lower-income year can reduce future RMDs and leave heirs tax-free money. Florida has no state income tax, so residents only pay the federal side. The key is converting just enough to fill a low bracket without tripping other limits.

5. Review your investment account for tax-saving opportunities

Investments that are down can be sold to offset gains elsewhere — a strategy called tax-loss harvesting. Watch the 30-day wash-sale rule if you plan to buy back in. On the other side, retirees with modest taxable income may qualify for a 0% rate on long-term gains, which can make it a good year to take some profits on purpose.

6. Max out your retirement contributions

For 2026 you can put up to $24,500 into a 401(k), and $7,500 into an IRA ($8,600 if you are 50 or older). One change catches people off guard: if you earned $150,000 or more in wages last year, your 401(k) catch-up contributions must now go in as Roth. That may change how you split the rest of your savings.

7. Business owners: buy, book, and pay yourself on purpose

The 2025 law brought back full first-year write-offs for qualifying equipment and made the 20% deduction for pass-through business income permanent. Equipment has to be placed in service by December 31 to count this year. Clean, current books are what make these decisions possible. If you run an S corporation, now is also the time to confirm your salary is reasonable and your estimated payments are on track.

Why these moves work better together

None of these decisions stand alone. A Roth conversion affects your senior deduction. A capital gain affects your Medicare premiums two years later. A new piece of equipment affects your business deduction and your personal return. Software handles each piece separately. A planner looks at the whole picture — and that is usually where the real savings are.

That is what we do at Sarasota Tax Planning. We work with individuals, retirees, and local business owners all year, not just in tax season, so your taxes, your books, and your investment decisions all point the same direction.

Book your year-end review

The best time to plan is before December 31, and our calendar fills up quickly in the fall. Call us at 941-225-5455 or email Katie@SarasotaTaxPlanning.com to schedule a year-end review. Bring last year's return and a recent investment statement, and we will show you where you stand and which of these moves fit you.

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Katie C. Pepin is a Certified Public Accountant licensed in Florida. Tax preparation, tax planning, accounting, and bookkeeping services are offered through Sarasota Tax Planning. This article is for general educational purposes only and is not tax, legal, or investment advice for any individual. Tax laws change often and their application depends on your specific circumstances. Please consult a qualified professional before acting on any information here. Figures reflect 2026 federal rules as of October 2026.