Tax mitigation strategies when rebalancing your investment portfolio
Large stock market gains in recent years, coupled with volatility in 2026, may have left you with a portfolio that’s out of balance with your desired asset allocation. If you haven’t rebalanced recently, it may be time. Careful planning can minimize the tax cost.
Say your portfolio is overweighted in large-cap U.S. stocks. You can save 2026 taxes if you sell some of this appreciated stock from a retirement account because the gain won’t be taxed. If you need to sell the stock from a taxable account, see whether there are assets in the account you can sell at a loss. The recognized loss can offset some or all of your capital gains.
Unlock tax-free gains with QSB stock
C corporation shareholders usually owe tax on gains from selling stock. But qualified small business (QSB) stock sales may qualify for a special gain exclusion. To be eligible for this break, certain requirements must be met.
QSB stock acquired after Sept. 27, 2010, may be eligible for a 100% gain exclusion if it’s held for at least five years. Under recent tax law changes, QSB stock acquired after July 4, 2025, may be eligible for a partial gain exclusion if it’s held for at least three years.
Contact us to learn whether this tax-saving strategy is right for your business. We can help structure your business to unlock the potential tax savings and navigate the complex rules.
How to ensure your business really owns its intellectual property
Intellectual property (IP) is foundational to the value of most businesses. To help ensure you actually own your company’s patents, trademarks, copyrights, trade secrets and other IP, work with an attorney to draft a standard invention assignment agreement. Employees and independent contractors should sign it when they’re hired and provide you with a list of excluded inventions (developed on their own or for previous employers). Legal advice is critical, but contact us as well. We can help you address IP ownership issues before you sell your business or before workers leave your employment. We can also help identify financial and tax considerations of IP.
Individual tax calendar: Key deadlines for the remainder of 2026
Here are a few key tax-related deadlines for individuals for the rest of 2026. JUNE 15: Pay the second installment of 2026 estimated taxes, if applicable. SEPT. 15: Pay the third installment of 2026 estimated taxes, if applicable. OCT. 15: File a 2025 income tax return and pay any tax, interest and penalties due if an automatic six-month extension was filed. DEC. 31: Incur various expenses that potentially can be deducted on your 2026 tax return. Contact us for more information about the filing requirements and to help ensure you meet all deadlines that apply to you.
Material participation: Why it matters for LLP and LLC owners
LLC and LLP owners: Can you deduct your business losses this year? The answer may depend on whether your activity is considered passive according to the IRS’s passive activity loss rules.
Under these rules, you generally can use passive losses only to offset income from other passive activities. If you meet certain “material participation” criteria, however, you may be able to offset LLC or LLP losses against nonpassive income, such as wages, interest, dividends and capital gains — but the rules can be complex, especially for limited partners.
Contact us for guidance on tracking your participation hours, applying the material participation test and maximizing business loss deductions.
Starting a business? 5 things you need to know
If you’ve decided to start a business, congratulations! Your first task will be to raise start-up funds if you can’t fund the business yourself. A thoughtful, detailed business plan can help attract lenders and equity investors. Next, separate your personal and business finances and choose an accounting system to record transactions and generate financial statements. Start tax planning early. The same goes for factoring your new business into your estate plan. Finally, consider offering early employees equity rather than big salaries. We can help you make critical financial decisions and support your operations as your business grows.
Your post-tax-filing checklist
After you’ve filed your 2025 tax return, what’s next? Here are a few to-dos: 1) Check your refund status by going to irs.gov and either logging into your IRS account or using the refund tracker. 2) If you forgot to report some deductible 2025 expenses (or anything else), file an amended tax return to claim those deductions and potentially increase your refund. 3) Store your return and supporting documents in a secure place where you’ll easily be able to find them if needed. 4) Turn your tax focus to 2026 planning. We can help project your income, deductions and credits for the year and propose strategies you can implement in the coming months to reduce your taxes. Contact us to get started.
ACA penalties may still apply — and they’re increasing for 2026
Growing small businesses may trigger the ACA’s play-or-pay provisions. These rules apply to applicable large employers (ALEs), which are those with 50 or more full-time employees, including full-time equivalents (FTEs).
ALEs must offer full-time employees and their dependents minimum essential coverage that’s affordable and provides certain minimum value. For 2026, the penalties for noncompliance generally are 1) $3,340 per full-time employee, excluding the first 30, for not offering coverage, and 2) $5,010 per full-time employee who receives a premium tax credit, for offering coverage that doesn’t meet the affordability and minimum value requirements.
Contact us to discuss your obligations.
What you need to know about filing an extension — and minimizing penalties
If you’re not ready to file your 2025 federal individual income tax return by April 15, you can request an automatic extension. Filing an extension (Form 4868) by April 15 can give you breathing room to file accurately and protect you from the failure-to-file penalty (assuming you file by the extended Oct. 15 deadline).
But it doesn’t extend your deadline for paying tax owed. So you should project and pay any amount due by April 15 to minimize interest and late payment penalties.
Have questions about your situation? Need assistance estimating your tax liability or filing an extension? Contact us. We can help you stay compliant and minimize penalties and interest.
FAQs about the research credit
Companies that engage in research and development activities may qualify for a federal tax credit for some of those expenses. The research credit is complicated to calculate, and not all research activities are eligible. But the tax savings can be significant. Certain taxpayers may even be able to use the credit to offset employer-paid payroll taxes or the owners’ alternative minimum tax obligations.
We can help you navigate the complexities of claiming this credit, including how it works, which costs may qualify and how it interacts with the deduction for research and experimentation costs. Contact us to discuss your business’s eligibility and quantify the potential benefits.