Tips to Turn Q4 Into Tax Savings

Reconsider your SALT deduction strategy

With the state and local tax (SALT) deduction limit increasing from $10,000 to $40,000 in 2025, now's a great time to review how you handle your state and local taxes. If you live in a high-tax area, this could mean big savings on your federal tax bill. To take advantage, look into whether itemizing makes more sense now.

Consider bundling two years worth of property taxes into one year, along with bunching two or more years of charitable deductions into 2025. This strategy can help you cross the itemization threshold more easily and boost your deductions even further.

Explore SALT benefits for pass-through business owners

Owners of pass-through entities such as S corporations, partnerships, or LLCs may also benefit from the expanded SALT deduction, as many states allow these businesses to pay state income tax at the business entity level using a method called the pass-through entity tax (PTET).

These state tax payments can then be deducted against federal income taxes up to the higher $40,000 SALT cap. But PTET isn’t automatic. You need to make a formal election to use it, and each state has its own deadline and requirements.

Consider donating appreciated stock

Instead of donating cash, consider giving appreciated securities you’ve held for more than a year. By doing so, you not only avoid paying capital gains tax on the appreciation, but you also receive a charitable deduction for the full fair market value of the stock. This creates a powerful double benefit: lowering your tax bill while supporting causes that matter to you.

This strategy can be especially valuable in years when your portfolio has performed well and you’re holding highly appreciated positions. For example, if you purchased stock for $10,000 and it’s now worth $25,000, donating the stock directly means you can deduct the full $25,000 without ever realizing the $15,000 gain. That avoids thousands of dollars in potential capital gains tax while still giving you the same charitable impact.

Manage multiple properties across states

If you have a long-time homestead in one state and another property elsewhere, your residency status and how you split time between states can have significant tax consequences. States are becoming more aggressive in asserting tax residency, with where you are classified as a resident potentially impacting not only your income tax liability but also your estate and inheritance taxes.

So now is a great time to evaluate where you've spent the majority of your year, whether you’ve maintained domicile ties (like voter registration, driver’s license, or mailing address), and how your property ownership aligns with your long-term tax planning goals.

Please call if you have questions about these or any other tax planning topics.