Smart Tax Moves to Make This Fall for Individuals and Business Owners

It’s never too early to start planning for tax season. Abacus! knows fall is an especially critical time for tax planning because it’s the last full quarter before the year ends. 

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That timing, according to experts, is exactly why fall is considered the sweet spot for tax planning. “By autumn, you have a clear picture of your income, expenses and any life or business changes that have occurred,” says Cristian Rath, CPA and tax strategist at Abacus!. “This window gives you enough time to make strategic moves—like maximizing retirement contributions, harvesting investment losses or making charitable gifts—before December 31, when most tax-saving opportunities close for the year. Waiting until January is often too late to make meaningful changes that could lower your tax bill.”

Tax Planning Mistakes to Avoid by Planning Ahead

Rath let us in on the top mistakes he sees clients make when they wait too long to begin planning for tax season. 

• Missing deadlines: Many tax-saving actions must be completed by December 31. Waiting until tax filing season (January–April) is too late for most strategies.
• Overlooking new laws: People often miss out on new deductions or credits because they don’t realize the law has changed.
• Not adjusting withholding or estimates: If you’ve had a big change in income, waiting until tax time can mean a surprise tax bill and penalties.
• Failing to harvest losses: Investors who wait may miss the chance to offset gains with losses.
• Business owners missing expensing opportunities: Delaying equipment purchases or not reviewing entity structure can mean missing out on deductions or credits.

New Bills and Laws to Know

The One Big Beautiful Bill Act (OBBBA), signed earlier this year, made changes to the tax code. Here are some highlights that affect both individuals and business owners:

For Individuals:

• Lower individual tax rates are now permanent, avoiding the scheduled increase after 2025.
• The standard deduction is permanently increased (for 2025: $23,625 for heads of household, $15,750 for singles).
• The expanded child tax credit is now $2,200 per child, with inflation adjustments and stricter Social Security number requirements.
• The estate and gift tax exemption is permanently increased to $15 million (indexed for inflation).
• The cap on state and local tax (SALT) deductions is increased to $40,000 for 2025, with a phase-down for high incomes.
• The deduction for personal exemptions remains suspended, except for a temporary senior deduction.
• Miscellaneous itemized deductions remain suspended, except for educator expenses.

Fall Tax Planning for Individuals vs. Business Owners

Individuals tend to focus on maximizing deductions through charitable giving, medical expenses or mortgage interest. They also look at tax-advantaged accounts such as IRAs and HSAs and review investment gains or losses. Many also double-check withholding or estimated tax payments to avoid surprises at filing time.

Business owners take a broader approach. They may accelerate or defer income and expenses, make equipment purchases to capture expense or bonus depreciation and review compensation strategies. Retirement plan contributions for themselves and their employees often come into play as well. Business owners also keep a close eye on new tax credits, deduction limits and changes to rules on business interest or expenses.