The tax moves I wish I’d made before December 31

For as long as I can remember, I’ve extended my taxes and settled up in October. Granted, “as long as I can remember” gets a little shorter every year. Ask me what I had for lunch yesterday and we’re both guessing.

Every October, I’d have the same thought.

I wish I’d done something about this last December.

My extension gave me more time to file. Any tax I owed was generally due in April, and by October the year I could’ve done something about was long over.

So here’s the list I wish I’d had.

Save it, forward it to your CPA, or add it to that pile of to-dos you and your spouse have been passing back and forth like a hot potato. Maybe, just maybe, this is the year you file by April 15 and owe less than you expected.

If you’re working toward the day your investments pay the bills, here’s what I’d look at before year-end.

Decide which repairs to do now

If you’re a cash-basis taxpayer, fixing a leak at an existing rental and paying for it by December 31 generally gives you a 2026 deduction.

A full roof replacement is usually an improvement you depreciate over time. For work that can safely wait, ask your CPA which year the deduction would help most.

IRS rental property guide

Review the rentals you already own

Check your property manager’s statements for expenses you paid separately, and ask your CPA to review your depreciation schedule.

Residential rental buildings generally depreciate over 27½ years.

Certain shorter-lived assets, like eligible appliances, may qualify for 100% bonus depreciation.

IRC §168 and IRS depreciation rules

Pay your kids for real work

If they take listing photos or organize receipts for the business, track their hours, pay a reasonable rate, and handle it through payroll.

Their ages and your business structure affect the payroll rules.

Those wages can also give them earned income to fund an IRA.

IRS family employee rules

Ask about the Augusta rule

If you rent out a home you use as a residence for fewer than 15 days total during the year, you can generally exclude the rent from federal income.

If your own business wants to rent it for a real meeting, ask your CPA whether the arrangement qualifies and what to document.

IRC §280A(g) and IRS guidance

Make a plan for your IRA

The 2026 limit is $7,500, or $8,600 if you’re 50 or older, subject to eligible compensation. A traditional IRA contribution may be deductible, and you generally have until the April 2027 filing deadline to make a 2026 contribution.

IRS IRA guide

Talk to your CPA before you sell

If you’re selling a rental, ask what you’ll owe on the gain and how prior depreciation factors in.

If you want to explore a 1031 exchange, get a qualified intermediary involved before closing.

IRC §1031 and IRS exchange instructions

Looking for a rental that could help with your 2026 tax bill?

We’re finishing up about four more properties available for December purchase. One of our new builds has a $40,000 price reduction and a $15,000 credit that could help buy your rate down to roughly 6%, depending on lender terms and borrower qualifications.

If the deal works for your portfolio, have your CPA run the numbers now. To start depreciation this year, the property needs to be ready and available to rent by December 31. Your CPA can tell you exactly how much of the deduction you can use on your 2026 return.

IRS rental property guide · IRS passive loss rules

Inventory is limited and December is close. If you want to reserve a property, reach out now.