Do your tax strategies need a refresh?
This guidebook provides an excellent starting point for individuals who are looking for general tax planning strategies. It discusses the wide array of relevant topics and offers some simple suggestions for reducing an individual’s overall tax burden, and it offers an entry point into these topics by providing clear, concise statements of tax rules and the situations in which they arise.
To help you identify strategies that might work for you in 2025-26, we’re pleased to present LBMC’s web-based tax planning guide.
To view it, simply click on the image above to visit our Web Tax Guide, where you can learn about important tax law changes and ways to minimize your income tax liability.
Anyone may so arrange his affairs that his taxes shall be as low as possible. He is not bound to choose that pattern which will best pay the Treasury. There is not even a patriotic duty to increase one’s taxes. – Judge Learned Hand in Helvering v. Gregory, 1934
2025 Brings More Tax Planning Certainty for Higher-Income Taxpayers
The expiration of certain provisions from the Tax Cuts and Jobs Act (TCJA) looms in 2026, and many high-income taxpayers are reviewing strategies to take advantage of current rates while they remain in effect. Although some uncertainty remains regarding future tax legislation, 2025 provides a relatively stable environment for proactive planning.
Key areas to consider include:
- Income Timing: Evaluate opportunities to accelerate income into 2025 if tax rates are expected to rise in 2026. This can include exercising stock options, finalizing deferred compensation payouts, or harvesting long-term gains.
- Charitable Contributions: Donors may consider bunching charitable gifts into 2025 to maximize itemized deductions before the potential return of higher thresholds and reduced standard deductions.
- Estate and Gift Planning: The lifetime estate and gift tax exemption remains historically high through 2025. Utilizing available exemptions before they are scheduled to revert to pre-TCJA levels can result in substantial long-term savings.
- Business Structures: Owners of pass-through entities should review whether the Qualified Business Income (QBI) deduction will continue to offer benefits and how future legislative changes might impact entity choice.
- Retirement Planning: With relatively low tax rates in place, converting traditional IRA assets to Roth IRAs can be an effective long-term strategy, especially for individuals who anticipate higher rates later.
What this means:
For many high-income taxpayers, 2025 represents a window of opportunity to reassess income, investment, and estate strategies before scheduled tax changes take effect. Collaboration with tax and financial advisors early in the year is recommended to identify the most advantageous moves under current law.
Of course, this guidebook is not the final authority on tax planning. Taxes are complex, and the best way to plan for them, take advantage of available tax benefits, and avoid potential tax problems is with professional advice.
Once you review this guide, we would welcome the opportunity to help you map out a tax plan that takes full advantage of all strategies available to you. Most tax reduction strategies must be implemented by Dec. 31 —and some even sooner. If you would like to discuss how we can help you develop a tax plan this year and beyond, please reach out to a financial professional at LBMC to get started.
* Investment advisory services are offered through LBMC Investment Advisors, LLC, which is a registered investment adviser with the U.S. Securities & Exchange Commission.
Tax Guide Contents:
- Income & Deductions
- Executive Compensation
- Investing
- Real Estate
- Business Ownership
- Charitable Giving
- Family & Education
- Retirement
- Estate Planning
- Tax Rates
LBMC tax tips are provided as an informational and educational service for clients and friends of the firm. The communication is high-level and should not be considered as legal or tax advice to take any specific action. Individuals should consult with their personal tax or legal advisors before making any tax or legal-related decisions. In addition, the information and data presented are based on sources believed to be reliable, but we do not guarantee their accuracy or completeness. The information is current as of the date indicated and is subject to change without notice.