Experts Stay Vigilant of Tax Law Changes in 2026

With the holiday season quickly approaching, financial advisors are highlighting the importance of year-end tax management for their clients. As 2025 comes to a close, advisors are emphasizing the need for preparation and strategic planning to maximize tax benefits and navigate the shifting tax landscape.

The recent enactment of the One Big Beautiful Bill Act has brought about significant changes to tax legislation and government spending. Tax experts like Kathy Buchs from MAI Capital Management point out that the new law has introduced complexities surrounding itemized deductions, particularly affecting charitable contributions for the upcoming years. To address these limitations, many clients are opting to accelerate their charitable giving in 2025 to maximize tax benefits before the rules take effect.

One tax-efficient strategy gaining traction is the use of donor-advised funds, providing flexibility for future charitable donations while optimizing tax advantages. Patrick Sabol of Facet suggests that simply maximizing contributions to pre-tax retirement accounts like 401(k)s and Health Savings Accounts can also yield substantial tax savings.

Another notable change brought about by the One Big Beautiful Bill Act is the increase in the deduction limit for state and local taxes, better known as the SALT deduction. John Patterson from OnePoint BFG Wealth Partners highlights that the deduction cap has been raised to $40,000 for the years 2025 through 2029, offering relief for taxpayers affected by the previous $10,000 limit.

Aside from charitable contributions and SALT deductions, advisors are emphasizing the importance of tax-loss harvesting as a year-end strategy. Gabriel Shahin of Falcon Wealth stresses the need to offset ordinary income with investment losses, optimizing tax liabilities. Lance Elrod of Next Step Financial Transitions recommends reviewing overall portfolio allocations and considering strategic Roth conversions to capitalize on potential tax benefits.

In light of the growing interest in cryptocurrency investing, advisors are also exploring tax management opportunities within this asset class. Elrod notes that recent market volatility in cryptocurrencies presents tax-saving opportunities for investors facing losses in their positions, highlighting the unique tax treatment of digital assets compared to traditional investments.

As clients navigate the complexities of year-end tax planning, advisors stress the importance of careful consideration and proactive decision-making to effectively manage tax liabilities. With the evolving tax landscape and new regulations coming into effect, strategic tax planning is essential to ensure clients make the most of available tax-saving opportunities and financial resources.