Year-End Tax Planning Checklist for Orange County Small Business Owners — What to Do Before December 31, 2026

Pathfinding Consultants | Business Tax Preparation | Orange County, CA | June 2026

Source: IRS Topic 409 | IRS Publication 560 | IRS Publication 550 | IRS Publication 590-B | IRS Publication 915 | IRS Rev. Proc. 2025-32

For Orange County small business owners, the most important tax deadline of the year is not April 15. It is December 31. Filing your tax return in April only reports what already happened during the year — it does not change it. Every significant year-end tax planning move — harvesting investment losses, making retirement contributions, converting pre-tax assets to Roth, establishing a Solo 401K — must be completed before the December 31 tax deadline. After that date, these options permanently close for the 2026 tax year. Year-end tax planning has two core goals that every Orange County small business owner should understand before the December 31 tax deadline arrives: defer income where possible into future tax years, and accelerate deductions where possible into the current tax year to reduce your 2026 tax liability. Pathfinding Consultants provides business tax preparation and year-end tax planning consultations for Orange County small business owners. If you have been searching for a tax advisor near me or enrolled agent near me for year-end planning, call (949) 620-1036 or book at calendly.com/tax-pathfindingconsultants/30min. Source: IRS.gov

Section 1: Investment Tax Moves to Complete Before December 31

Orange County small business owners with investment accounts have three year-end tax planning moves to consider before the December 31 tax deadline. All three are based on IRS-confirmed rules — no opinion, no speculation. Source: IRS Topic No. 409 — irs.gov/taxtopics/tc409

Tax Loss Harvesting — Sell Losing Positions Before December 31

If you hold investment positions that are currently worth less than you paid for them, you can sell those positions before December 31 to realize a capital loss. Those capital losses offset any capital gains you realized during 2026 on a dollar-for-dollar basis. If your total capital losses exceed your total capital gains, you can use up to $3,000 of the excess loss to offset ordinary income on your 2026 tax return ($1,500 if married filing separately). Any remaining losses that exceed the $3,000 limit carry forward to future tax years indefinitely — there is no expiration. This is confirmed IRS policy. Source: IRS Topic No. 409 — irs.gov/taxtopics/tc409 | IRS Publication 550

Mutual Fund Distribution Avoidance — Check Before You Buy

Many mutual funds issue taxable capital gain distributions in November and December. If you purchase mutual fund shares right before the distribution date, the fund’s share price drops by the distribution amount on the ex-dividend date — meaning you receive no market value gain from the distribution. However, you are still taxed on the full distribution as a capital gain. This is a common year-end tax planning mistake. Before purchasing any mutual fund shares in November or December, confirm whether a year-end distribution is expected. If the expected distribution amount exceeds the embedded gain in your position, exiting before the distribution date may reduce your 2026 tax liability. Source: IRS Publication 550 — irs.gov/publications/p550

Capital Gain Acceleration — The 0% Rate Opportunity in 2026

For 2026, the long-term capital gains tax rate is 0% if your total taxable income falls at or below $49,450 (single filer) or $98,900 (married filing jointly). Taxable income is your adjusted gross income minus your standard deduction — which is $16,100 for single filers and $32,200 for married filing jointly in 2026. If your 2026 income is unusually low due to a slower business year, a change in employment, or large deductions, and your taxable income falls within the 0% bracket, selling appreciated investment positions before December 31 locks in those gains at zero federal capital gains tax. Source: IRS Rev. Proc. 2025-32 — irs.gov

2026 long-term capital gains tax rates confirmed by IRS Rev. Proc. 2025-32 — these apply to assets held more than one year. Short-term capital gains (assets held one year or less) are taxed as ordinary income at your regular tax bracket rate. Source: IRS Topic No. 409

2026 Long-Term Capital Gains Tax Rate Thresholds — Source: IRS Rev. Proc. 2025-32:

Filing Status	0% Rate (taxable income at or below)	15% Rate	20% Rate
Single	$49,450	$49,451 – $566,700	Above $566,700
Married Filing Jointly	$98,900	$98,901 – $613,700	Above $613,700
Head of Household	$66,450	$66,451 – $600,050	Above $600,050

Need help reviewing your year-end tax position before December 31?

Pathfinding Consultants provides year-end tax planning consultations for Orange County small business owners. Book now.

Schedule your consultation now.

Call: (949) 620-1036  ·  pathfindingconsultants.com

Section 2: Retirement Contribution Moves Before December 31

Retirement contributions are one of the most powerful year-end tax planning tools available to Orange County small business owners. All retirement contribution limits below are confirmed 2026 IRS figures from IRS Publication 560 and IRS Revenue Procedure 2025-32. Source: IRS Publication 560 — irs.gov/publications/p560

2026 Retirement Contribution Limits — Confirmed IRS Figures:

Plan / Contributor	Under 50	Age 50-59 / 64+	Age 60-63
401K / 403B employee deferral	$24,500	$32,500	$35,750
Solo 401K total (employee + employer)	$72,000	$80,000	$83,250
Solo 401K deadline (employee deferrals)	December 31, 2026 — hard cutoff for S-Corps and partnerships

Source: IRS Publication 560 (irs.gov/publications/p560) | IRS Retirement Topics 401(k) Contribution Limits (irs.gov) | SECURE 2.0 Act Section 109 (higher catch-up for age 60-63).

Max Out Your 401K or 403B by December 31

Employee salary deferrals to a 401K, 403B, or 457 plan must be completed by December 31 — they cannot be made retroactively after year-end. For 2026, the employee deferral limit is $24,500. If you are age 50, 51, 52, 53, 54, 55, 56, 57, 58, or 59, or age 64 or older, the catch-up contribution limit adds $8,000 for a total of $32,500. If you are age 60, 61, 62, or 63, SECURE 2.0 provides a higher catch-up of $11,250 for a total of $35,750. Check your most recent pay stub to confirm your year-to-date deferrals are on pace to hit your applicable limit before your final paycheck of 2026. Source: IRS Publication 560

Solo 401K — Must Be Established by December 31 for Employee Deferrals

For Orange County self-employed business owners, S-Corp owners, and partnerships, establishing a Solo 401K plan by December 31, 2026 is required to make employee salary deferral contributions for the 2026 tax year. This is the hard cutoff — the plan documents must be signed and the plan adopted by December 31. The total Solo 401K contribution limit for 2026 is $72,000 for those under age 50, combining both the employee deferral ($24,500) and an employer profit-sharing contribution of up to 25% of compensation. Age 50-59 and 64+: up to $80,000 total. Age 60-63: up to $83,250 total. Once established by December 31, actual cash contributions can be made up to your business tax return due date including extensions. Source: IRS Publication 560 | IRS Retirement Topics — irs.gov

Catch-Up Contributions — The Age 50 Calendar Year Rule

If you turn 50 at any point during 2026, you are eligible for catch-up contributions for the entire 2026 calendar year — starting January 1, 2026, regardless of which month your birthday falls in. You do not need to wait until your birthday month to begin making catch-up contributions. The additional catch-up for age 50-59 and 64+ is $8,000 in 2026. For those who turn 60, 61, 62, or 63 in 2026, SECURE 2.0 provides a higher catch-up of $11,250. Source: IRS Publication 560 | SECURE 2.0 Act Section 109

Roth Conversion Analysis — Lower-Income Year Opportunity

A Roth conversion moves pre-tax IRA or 401K assets into a Roth account. The converted amount is taxable as ordinary income in the year of conversion. However, assets in a Roth account grow tax-deferred and are withdrawn tax-free in retirement. If your 2026 income is lower than normal — due to a slower business year, a large deduction, or a change in employment — you may fall into a lower tax bracket than usual. Converting pre-tax assets in a low-income year reduces the tax cost of the conversion. During market downturns, Roth conversions become even more efficient because asset values are compressed, meaning more shares convert for the same tax cost. Source: IRS Publication 590-B — irs.gov/publications/p590b

Section 3: Year-End Tax Trip Wires to Check Before Acting

Year-end tax planning moves do not work in isolation. Each strategy can interact with other parts of your tax return in ways that reduce or eliminate the benefit. Pathfinding Consultants reviews these interactions as part of every year-end Orange County tax planning consultation. The following are the most common trip wires confirmed by IRS guidance:

Trip Wire 1: Roth Conversion + Social Security Taxability

Social Security benefits begin to become taxable when your combined income (adjusted gross income plus nontaxable interest plus half of your Social Security benefits) exceeds $25,000 for single filers or $32,000 for married filing jointly. Up to 85% of your Social Security benefits become taxable when combined income exceeds $34,000 (single) or $44,000 (married filing jointly). A Roth conversion increases your adjusted gross income, which can push combined income above these thresholds and increase the taxable portion of your Social Security benefits. Source: IRS Publication 915 — irs.gov/publications/p915

Trip Wire 2: Roth Conversion + Medicare IRMAA Surcharges

Medicare Part B and Part D premiums are subject to Income-Related Monthly Adjustment Amount (IRMAA) surcharges when your Modified Adjusted Gross Income (MAGI) exceeds certain thresholds. The Social Security Administration determines IRMAA surcharges using your tax return from two years prior. A large Roth conversion in 2026 that significantly increases your 2026 MAGI can trigger IRMAA premium surcharges in 2028. Before completing a Roth conversion, calculate the impact on your Medicare premiums two years forward. Source: CMS.gov / Medicare.gov / IRS.gov

Always run a full tax projection before implementing any year-end strategy

Each year-end tax planning move must be evaluated in the context of your complete 2026 tax picture before implementation. A Roth conversion that saves one Orange County business owner $8,000 in income tax may simultaneously increase Social Security taxability and trigger IRMAA surcharges that cost a different business owner $6,000. There is no universal year-end tax planning strategy. The correct moves for your situation depend on your 2026 income, your entity structure, your retirement account balances, your investment gains and losses, and your California FTB position. Pathfinding Consultants prepares a full tax projection as part of every year-end Orange County tax planning consultation. Call (949) 620-1036 or book at calendly.com/tax-pathfindingconsultants/30min

Section 4: Year-End Tax Planning Checklist — Orange County Small Business Owners 2026

Use this small business tax checklist before December 31, 2026. Each item in this small business tax checklist is based on confirmed IRS rules. Keep this small business tax checklist accessible through December. Items marked with ⚠ have a hard December 31 deadline that cannot be extended. Source: IRS.gov

Investment Moves:

• Review all investment positions — identify losses to harvest against 2026 capital gains before December 31

• Check mutual fund year-end distribution dates before purchasing shares in November or December

• If 2026 taxable income falls at or below $49,450 (single) or $98,900 (married) — evaluate selling appreciated positions at 0% capital gains rate before December 31

 Retirement Contribution Moves:

⚠ Confirm 401K or 403B salary deferrals are on pace: $24,500 limit / $32,500 if age 50-59 or 64+ / $35,750 if age 60-63

⚠ If self-employed with S-Corp or partnership — establish Solo 401K plan documents by December 31 (required for employee deferrals)

⚠ If turning 50 in 2026 — confirm catch-up contributions are activated (eligible from January 1, 2026 regardless of birthday month)

Evaluate Roth conversion opportunity if 2026 income is lower than prior years

 Before Acting — Check These:

• Check Social Security taxability impact if considering a Roth conversion — thresholds: $25,000 single / $32,000 married

• Check Medicare IRMAA surcharge impact of any income increase in 2026 — affects premiums two years forward

• Run a full tax projection before implementing any strategy

• Call Pathfinding Consultants for your year-end Orange County tax planning consultation before December 31 — (949) 620-1036

Why Orange County Small Business Owners Work with Pathfinding Consultants for Year-End Tax Planning

When Orange County small business owners search for tax firms near me, business tax firms near me, or other business tax firms near me for year-end tax planning, Pathfinding Consultants provides business tax preparation and year-end tax planning consultations that cover your complete 2026 tax picture — not just one strategy in isolation. As an enrolled agent near me option for Orange County business owners, Pathfinding Consultants provides:

• Full tax projection before December 31 — every year-end move evaluated against your complete 2026 income, deductions, retirement accounts, capital gains, and California FTB position.

• Solo 401K setup — Pathfinding Consultants assists Orange County self-employed business owners in establishing Solo 401K plans before the December 31 tax deadline to preserve full employee deferral eligibility.

• Retirement contribution analysis — exact Solo 401K, SEP-IRA, and defined benefit plan contribution calculations based on your actual 2026 net self-employment income. No estimates.

• Roth conversion analysis — if your 2026 income creates a Roth conversion window, Pathfinding Consultants calculates the optimal conversion amount after checking Social Security taxability and Medicare IRMAA impacts.

• Investment loss review — Pathfinding Consultants reviews your capital gains and losses as part of every year-end Orange County tax planning consultation and identifies harvesting opportunities before December 31.

• California FTB coordination — year-end tax planning for Orange County business owners must account for California state tax implications alongside federal. Pathfinding Consultants covers both.

• Year-round tax advisor near me access — Pathfinding Consultants is not a seasonal tax firm. Your year-end tax planning consultation is available now, before the December 31 tax deadline. Call (949) 620-1036 or book at calendly.com/tax-pathfindingconsultants/30min

December 31 is your real tax deadline — not April 15

Most tax-saving moves expire December 31. Pathfinding Consultants provides year-end Orange County tax planning consultations for small business owners.

Schedule your consultation now.

Call: (949) 620-1036  ·  pathfindingconsultants.com

Key Takeaways — Year-End Tax Planning Orange County 2026

• December 31 is the real tax deadline for year-end tax planning moves — not April 15. After December 31, most tax-saving options close permanently for 2026.

• Tax loss harvesting: sell losing positions before December 31 to offset capital gains. Up to $3,000 of excess losses offsets ordinary income. Remaining losses carry forward. Source: IRS Topic 409.

• 2026 capital gains 0% rate: taxable income at or below $49,450 (single) or $98,900 (married filing jointly). Source: IRS Rev. Proc. 2025-32.

• 401K deferral limit 2026: $24,500. Catch-up age 50-59/64+: $8,000 additional. Catch-up age 60-63: $11,250 additional. Source: IRS Publication 560.

• Solo 401K total 2026: $72,000 under age 50. $80,000 age 50-59/64+. $83,250 age 60-63. S-Corp and partnership plan must be established by December 31 for employee deferrals. Source: IRS Publication 560.

• Roth conversions increase AGI — check Social Security taxability (thresholds: $25,000 single / $32,000 MFJ) and Medicare IRMAA surcharges before converting. Source: IRS Publication 915 / CMS.gov.

• Run a full tax projection before implementing any year-end strategy. Results vary by individual situation.

• Pathfinding Consultants — business tax preparation and year-end Orange County tax planning for small business owners. Enrolled agent near me with full IRS representation.

• Source: IRS Topic 409 | IRS Pub. 550 | IRS Pub. 560 | IRS Pub. 590-B | IRS Pub. 915 | IRS Rev. Proc. 2025-32 | CMS.gov

• Internal: /tax-preparation-services | /tax-planning-services | /bookkeeping-services

• Call (949) 620-1036 | calendly.com/tax-pathfindingconsultants/30min

IRS DISCLAIMER:

This blog is for general informational purposes only and does not constitute tax or financial advice. Tax laws are complex, change frequently, and every situation is different. Figures cited reflect IRS guidance as of 2026 and are subject to adjustment. Please consult a qualified tax professional before implementing any tax strategy. For official IRS guidance visit irs.gov.