Why Waiting Until November for Q4 Tax Planning Could Cost You: How to Prepare for 2025 (and Beyond) Now

September has crept up on us, and as we transition into the final quarter of the year, it’s the perfect time to reflect on your business’s financial health and prepare for what’s ahead. For many business owners and real estate professionals, Q4 tax planning often gets pushed to the backburner. It’s a common pattern: most people wait until November (or even December) to start preparing for their year-end taxes.

But here’s the truth that many overlook: effective tax planning for Q4 should already be focused on Q1 2026—and even beyond. In reality, the time to prepare your taxes for next year starts now, in September, not at the last minute when it’s too late to make meaningful adjustments.

The Common Pitfall of Last-Minute Tax Planning

If you’re like most business owners, especially in the real estate industry, you may find yourself getting frantic phone calls or emails around November:

• “My numbers don’t look right. What should I do?”
• “I’m not sure if my tax strategy is complete.”
• “Are my deductions maximized? I don’t know what I’m missing!”

These concerns are legitimate—and they often arise from waiting too long to tackle tax planning. But waiting until the end of the year to plan your taxes means you’re already behind the eight-ball. By the time you realize there are mistakes or missed opportunities, it might be too late to make corrections that will have a meaningful impact on your tax burden.

Why Waiting Until Q4 Is Too Late for Strategic Tax Planning

Tax planning isn’t just about looking at your numbers and filing your taxes—it’s about strategically positioning your business and real estate investments for the future. The earlier you start, the more options you have to take advantage of tax deductions, credits, and other opportunities that can reduce your tax liability.

Here’s why waiting until November or December can leave you scrambling:

1. Missed Deductions & Credits: Many tax-saving strategies, such as making contributions to retirement accounts or conducting asset depreciation for real estate, require advance planning. By waiting too long, you may miss valuable opportunities to reduce your taxable income for the current year.
2. Limited Flexibility for Tax Moves: For example, a 1031 exchange—which allows real estate investors to defer capital gains tax by reinvesting the proceeds into a like-kind property—requires careful timing and preparation. Last-minute tax planning limits your ability to take advantage of these types of opportunities.
3. Last-Minute Stress: By waiting until November, you’re setting yourself up for a stressful end to the year. You’ll need to rush through complicated decisions and miss out on the more strategic choices that early planning can offer. In essence, you lose out on making decisions that could have a substantial impact on your business’s or investment portfolio’s future.

Tax Planning for Q4 Should Actually Be Focused on 2026 (and Beyond)

The real key to successful tax planning isn’t about rushing to prepare for this quarter—it’s about planning ahead for the next tax year and beyond.

Here’s how to shift your mindset and get the ball rolling now:

• Review your business structure: Are you operating as an LLC, S-Corp, or C-Corp? Your business structure has a significant impact on your taxes, and it’s essential to reassess whether the current structure is the most tax-efficient one. Changes to your entity can be made at any point in the year but require thorough tax planning to understand the long-term effects.
• Plan for 1031 exchanges: If you’re a real estate investor, tax planning for Q4 2025 should involve strategizing for a potential 1031 exchange. A 1031 exchange allows you to defer paying taxes on the gain of your property sale if you reinvest those proceeds into similar property. Early planning ensures you meet all the timing and legal requirements.
• Accelerate deductions: Many tax-saving actions can only be taken at specific times. For instance, maxing out contributions to retirement plans like a SEP IRA or 401(k) before year-end can reduce your taxable income for the current year. Early planning ensures that you don’t miss out on these opportunities.
• Consider capital gains taxes: For both business owners and real estate investors, planning for capital gains taxes is essential. Depending on your assets and income, there could be ways to defer, minimize, or even eliminate capital gains tax. Tax-loss harvesting (selling investments at a loss to offset gains) can also be a powerful tool.

How Early Tax Planning Can Benefit Your Business and Real Estate Investments

Waiting to begin tax planning until Q4 means missing the chance to adjust strategies for the following year. Here’s how starting now benefits you:

1. Reduced Stress: When you start your tax planning early, you have plenty of time to explore all options and make well-informed decisions that align with your business or investment goals. No more scrambling at the last minute.
2. Better Tax Strategy: Early tax planning allows you to take advantage of tax-saving strategies, such as qualifying for certain deductions, credits, and making key purchases before the year ends.
3. Increased Profitability: By reducing your tax liability, you can allocate more funds to grow your business or reinvest in real estate properties. Fewer taxes mean more money in your pocket, which can be used for strategic business expansion.
4. More Time for Adjustments: If you discover issues in your planning, you’ll have plenty of time to consult with your CPA or tax professional to come up with alternative strategies. You’ll also be better prepared with a clear picture of your financial situation.

Don’t Wait—Start Your Tax Planning Today

The best time to start your tax planning is now. It doesn’t matter if you’re a small business owner, an entrepreneur, or a real estate investor—early tax planning can provide invaluable benefits in terms of reducing your taxable income and minimizing future liabilities.

If you haven’t started planning your taxes for Q4 yet, don’t wait. Reach out to your tax professional today and schedule a consultation. The earlier you plan, the more options you have to reduce your tax burden and position your business for success.

Conclusion:

Waiting until the last minute to handle Q4 tax planning can cost you both financially and strategically. By planning ahead and focusing on next year’s tax implications today, you ensure your business and real estate investments are positioned for long-term success. Don’t let November’s rush catch you off guard—take action now to secure your financial future.

Ready to get started? Contact us today https://mlcpas.net/contact/, and let’s build a tax strategy tailored to your business needs. Looking for a tax professional to help you with early tax planning for Q4? [Contact us now] https://mlcpas.net/contact/ to schedule a consultation and start planning for a financially sound future!