It’s Never Too Early: Why Smart Tax Planning Starts Now

The forms are filed, the deadlines are met and your 2024 tax season is officially behind you (or you’ve at least filed your extension). If you’re like most business owners or high-net-worth individuals, you probably let out a sigh of relief before going right back to everything else on your plate.

But here’s the truth: The most successful financial outcomes don’t happen during tax season. They’re built long before it ever begins.

A Fresh Start Right After the Finish Line

At James Moore, we’ve seen firsthand how year-round tax planning turns a stressful sprint into a strategic advantage. It’s not about reacting to what happened last year; it’s about anticipating (or better yet, deciding) what’s coming next. That’s why, even just a week after the April 15 deadline, the best time to think about next year’s tax strategy is today.

Whether you run a business, manage a portfolio of properties or lead a nonprofit, your tax picture is constantly evolving. Planning early helps you stay ahead of those changes and makes business tax preparation smoother, smarter and far more beneficial.

Why Early Tax Planning Pays Off: Data and Dollars

If you’ve ever scrambled to gather receipts, run payroll reports or figure out which deductions you’re eligible for at the last minute, you already know the stress of tax season. But beyond convenience, there’s measurable value in planning ahead. One of the biggest benefits is the ability to plan ahead for tax credits, deductions, and cash flow. When tax planning is done early and thoughtfully:

• Opportunities increase
• Cash flow improves
• You gain negotiating power
• Tax preparation becomes proactive

This kind of thinking becomes even more critical as tax laws change. Whether it’s updated depreciation rules, estate tax thresholds or energy-efficiency incentives, being prepared is key to capturing value instead of scrambling to catch up.

The Difference Between Tax Prep and Tax Strategy

We know the words “tax preparation” don’t exactly inspire excitement. For many, it’s the time to gather paperwork, send it to a CPA, sign the return and move on. But tax preparation is just one piece of the puzzle. It gets the job done, but it simply reports what has already happened. It doesn’t shape what comes next, like tax strategy does.

Here’s where the biggest gap lies: Too often, clients come to us in March expecting a dramatic last-minute solution to reduce their tax bill. And while there are a few elections we can make when preparing your return — think Section 179 expensing or depreciation timing — by the time your books are closed and the forms are due, most of the decisions that impact your tax liability have already been made.

That’s why strategy is so powerful. Tax planning gives you the opportunity to change the outcome. You can time equipment purchases, adjust compensation structures, optimize retirement contributions, or structure charitable giving in ways that minimize your tax exposure and support your bigger goals.

More importantly, tax strategy isn’t one-size-fits-all. A good advisory team will look at your entire financial picture (not just your income statement) and help you build a plan that reflects where you want to go. That includes things like:

• Choosing the right entity structure as your business grows
• Coordinating tax-smart withdrawal strategies across investment accounts
• Evaluating multistate tax exposure and nexus risks
• Preparing for liquidity events like a business sale, inheritance or windfall

For example, say your construction company is planning to purchase $750,000 in new equipment. A good preparer will apply depreciation rules and get your return filed on time. But a great advisor will ask in October, “Should we accelerate the purchase to take advantage of bonus depreciation this year? Should we structure it differently to free up cash flow?” That’s tax strategy, and it could mean tens of thousands in savings.

The same goes for high-net-worth individuals. Selling a rental property? Gifting stock to family? Donating to a foundation? When timed correctly, these moves can dramatically reduce your tax liability. But if you only bring them up at filing time, your options may already be limited.

The bottom line? If you’re only focused on tax prep, you’re looking in the rearview mirror. Tax strategy puts your eyes on the road ahead — and gives you the tools to steer.

Industry-Specific Tax Opportunities You Can’t Afford to Miss

Every industry has its own set of tax planning levers, and most of them require time to pull effectively. Rather than try to cover them all here, we’ve broken them down by sector with detailed strategies to explore:

• Construction Tax Planning Strategies
• Year-End Healthcare Tax Moves
• Manufacturing Tax Planning
• Unrelated Business Income and Nonprofits
• The Interplay Between Real Estate Investments and Tax Strategies

▶ Learn more about our R&D Tax Credit Services.

Personal and 1040 Tax Planning for Business Owners

Business decisions directly impact your personal return. That’s why tax planning for business owners should always include a 1040 strategy.

Some of the biggest opportunities include:

• Timing income recognition from passthrough entities
• Managing capital gains through harvesting or donation strategies
• Funding retirement plans to reduce AGI
• Coordinating charitable contributions with your estate plan

When your personal and business planning are aligned, you’re in a better position to manage cash flow, avoid underpayment penalties and reduce overall liability.

Individual Tax Planning for High-Income Earners and HNWIs

Tax planning isn’t just for business owners. If you have significant assets, multiple income streams or complex investments, planning early can make a major difference in what you pay and what you keep.

High-income earners and high-net-worth individuals (HNWIs) benefit most from year-round planning. That includes strategies like:

• Timing income to manage brackets and surtaxes
• Harvesting capital losses to offset investment gains
• Bunching charitable donations for greater deduction impact
• Funding tax-advantaged accounts like IRAs, HSAs and 529 plans

For those with multistate residences, real estate investments, trusts or private equity interests, the web of personal tax rules gets even more complex. That’s why it’s essential to have a coordinated plan that reflects your financial structure.

▶ Thinking long term? Our Estate Planning Services are designed to protect your legacy — and your beneficiaries.

Your Tax Calendar: What to Do Now, Next Quarter and Year-End

One of the biggest benefits of early tax planning is avoiding the crunch. When you spread the work across the calendar, you gain breathing room and better insights. Here’s a high-level view of what proactive businesses and individuals do throughout the year.

Spring (April–June)

• Review your most recent return
• Adjust estimated tax payments based on current year projections
• Update your chart of accounts
• Reapply refunds toward estimated taxes

Summer (July–September)

• Conduct mid-year tax projections
• Evaluate capital investments
• Start documentation for potential credits
• Review entity structure

Fall (October–December)

• Finalize strategic moves (bonuses, donations, contributions)
• Implement required elections
• Run final projections
• Gather documentation early

Year-End & January (December–January)

• Close the books
• Review and sign engagement letters
• Organize tax documents

Start Tax Planning Today for a Year-Round Advantage

We get it. After tax season, the last thing you want to think about is more tax work. But when you treat tax planning as a year-round priority, business tax preparation becomes less stressful, more strategic and more valuable.

At James Moore, we help you align your tax strategy with your business goals, your family’s financial future and your evolving life circumstances. Whether you’re overseeing operations in multiple states, expanding your investment portfolio, or exploring energy-efficient tax credits for your construction firm, we’re here to support your success every step of the way.  Contact us to put proactive planning in motion for your business, your estate and your future.

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a James Moore professional. James Moore will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.