The Q4 tax planning checklist we run with every client
By October, most of the year's tax outcome is already locked in. Here's the short list we go through with every advisory client before year-end.
Most of our advisory meetings in October and November follow the same agenda. It's not glamorous, but it catches the decisions that actually move the number on the return.
Retirement contributions. For owner-employees, we size the Solo 401(k) or SEP contribution against current and projected income. For high earners, we also look at whether a cash balance plan is worth opening before year-end.
Equity compensation. If the client has ISOs or NSOs, we model AMT, short-vs-long-term treatment, and whether exercising before year-end makes sense given their current bracket.
Charitable giving. For clients with appreciated securities, we look at donor-advised fund contributions in lieu of cash. The deduction is the same, but the cost basis isn't.
Estimated payments. We recalculate the Q4 estimate against the year-to-date books. For clients with uneven income (one-time gains, deferred comp), the safe-harbor rules often save cash flow.
Entity cleanup. If there's an entity we're closing, dissolving, or restructuring, year-end is usually the cleanest date.