Heading Into Q4: Should Wealth Taxes Be Part of Your 2026 Financial Planning?

As we head toward the fourth quarter of 2026, year-end tax planning should be moving higher on the priority list for business owners, investors, and high-net-worth individuals.

There are still several months left in the year, but many of the tax-planning decisions that can affect your 2026 return need to happen before December 31.

That makes now a good time to look at your income, investments, business activity, estate plan, retirement contributions and distributions, charitable giving, and overall financial picture. It is especially important to understand the new 2026 charitable-contribution rules, which can cause the amount donated to differ from the amount actually deductible.

It is also a good time to pay attention to the ongoing discussion surrounding wealth taxes and the taxation of high-income and high-net-worth taxpayers.

The United States does not currently impose a broad annual federal wealth tax. However, proposals introduced in Congress during 2026 show that the taxation of accumulated wealth continues to be part of the national tax-policy conversation.

For taxpayers building significant wealth, the lesson is not to react to every proposal. It is to make sure your tax and financial strategy is prepared to adapt.

What Is a Wealth Tax?

Most federal taxes are tied to income, transactions, or transfers.

A traditional wealth tax is different because it is based on the net value of assets owned by a taxpayer, rather than solely on income earned during the year.

Depending on how a wealth-tax law is structured, assets considered could potentially include:

• Stocks and investment accounts

• Real estate

• Privately held businesses

• Partnership interests

• Certain trusts

• Valuable personal property

• Other financial and investment assets

Liabilities may also be taken into account when determining net wealth.

This distinction matters because net worth and cash flow are not the same thing. Someone may have substantial wealth tied up in a company, real estate portfolio, or investment holdings without having an equivalent amount of cash readily available. That is one reason wealth taxation creates unique financial-planning questions.

Are Wealth Taxes Currently Law in 2026?

There is currently no broad annual federal wealth tax in effect in the United States. However, legislation has been introduced.

The Ultra-Millionaire Tax Act of 2026 was introduced in both the House and Senate in March 2026. The Senate version, S. 4246, was referred to the Senate Finance Committee. It proposes a federal tax based on the net value of certain taxpayers' assets. As of August 28, 2026, the proposal remains legislation and has not become law.

Other proposals introduced during 2026 have focused on increasing taxes on very high-income taxpayers rather than directly taxing net worth. For example, the Millionaires Surtax Act was introduced in April and would impose an additional tax on certain high-income individuals.

These proposals may change, stall, or never become law. Taxpayers generally should not restructure their entire financial lives based on legislation that has not passed.

Still, proposed changes can serve as an important reminder: tax laws evolve, and financial plans need to evolve with them.

Why Q4 Tax Planning Matters

Tax preparation and tax planning are not the same thing. Tax preparation looks backward. Tax planning looks forward.

When your CPA prepares your return, many of the financial decisions affecting that return have already happened. By Q4, however, there may still be time to evaluate your situation and make decisions before the year closes.

• That may include reviewing:

• Expected 2026 taxable income

• Capital gains and losses

• Retirement contributions and distributions

• Business income

• Estimated tax payments

• Charitable contributions and the amount actually deductible under the new 2026 rules

• Investment transactions

• Estate and gifting strategies

• Major purchases or sales

• Potential 2027 transactions

The goal is not simply to lower this year's tax bill. Good planning looks at how today's decision affects 2026, 2027, and your longer-term financial position.

1. Review Your Capital Gains Before Year-End

If you own investments, real estate, or other appreciated assets, take time before year-end to understand your unrealized gains and losses.

Selling an appreciated asset can create a taxable capital gain. At the same time, realized investment losses may sometimes help offset taxable capital gains, subject to applicable tax rules and limitations.

Rather than making investment decisions based only on market performance, consider the potential after-tax impact as well. A conversation between your investment advisor and tax professional can be particularly helpful when major transactions are being considered.

2. Business Owners Should Review Their 2026 Income Now

Business owners have an additional layer of planning because business decisions and personal taxes are often closely connected.

Before Q4 gets away from you, review your year-to-date financial statements and compare them with your expectations for the remainder of the year.

Questions to consider include:

• Is the business more profitable than expected?

• Have estimated tax payments kept pace with income?

• Are there large expenses or purchases anticipated before year-end?

• Are owner distributions being handled appropriately?

• Are retirement contributions being maximized where appropriate?

• Are there significant transactions planned for early 2027?

• Does your current entity structure still make sense?

This is another reason accurate and current bookkeeping matters. It is very difficult to make informed tax-planning decisions using financial records that are several months behind.

3. Do Not Forget About Liquidity

One of the biggest differences between income and wealth is liquidity. Consider a business owner whose company has become extremely valuable. Their personal net worth may have increased substantially, but most of that wealth could still be tied up in the company.

The same issue can occur with:

• Rental real estate

• Commercial property

• Closely held businesses

• Concentrated stock positions

• Family-owned companies

• Valuable noncash assets

A person's financial statement may show considerable wealth while their available cash tells a very different story. For individuals building substantial assets, liquidity planning should be part of the overall financial strategy.

4. Review Estate and Gift Planning

Q4 is also an appropriate time to review estate and gifting strategies.

For 2026, the federal basic estate and gift tax exclusion amount is $15 million per individual. The IRS also confirms that the annual gift tax exclusion for 2026 is $19,000 per recipient, subject to the applicable rules surrounding gifts and gift-tax reporting. See the IRS estate and gift tax update.

Why the $15 million exclusion matters

Public Law 119-21, commonly referred to as the One Big Beautiful Bill Act (OBBBA), changed the prior sunset rules. Instead of allowing the higher estate and gift tax exemption to expire after 2025, the law amended Internal Revenue Code Section 2010(c)(3) to establish a $15 million basic exclusion amount for 2026, with inflation adjustments after 2026.

This removed the scheduled sunset that otherwise would have reduced the exemption. Even with the larger exclusion, estate planning remains important because tax exposure is only one part of a complete transfer plan.

That does not mean every gift under or over those amounts has the same tax consequences. Gift taxation can involve issues such as:

• Lifetime exemption usage

• Gift-tax return filing requirements

• Valuation

• Trusts

• Generation-skipping transfers

• Business interests

• Marital and charitable deductions

For families with significant wealth, estate planning should generally be coordinated among your CPA, estate attorney, and financial advisor.

The goal is not simply to avoid taxes. It is to make sure assets are ultimately transferred according to your wishes while understanding the financial and tax consequences of those decisions.

5. Look at Charitable Giving Before December 31

If charitable giving is part of your financial plan, Q4 is a good time to consider how and when those gifts will be made. Beginning with the 2026 tax year, new federal rules change how charitable deductions work for both itemizers and taxpayers who take the standard deduction.

Key charitable-deduction changes for 2026

0.5% AGI floor for itemizers: Taxpayers who itemize may deduct charitable contributions only to the extent that their aggregate contributions exceed 0.5% of their contribution base, which is generally adjusted gross income (AGI). In practical terms, the first 0.5% of AGI produces no current charitable deduction unless a separate carryforward rule applies.

Example: If your AGI is $200,000, the floor is $1,000. A $10,000 charitable contribution would produce a potential $9,000 itemized deduction before applying any other applicable percentage limits, valuation rules, or substantiation requirements.

Deduction for non-itemizers: Taxpayers taking the standard deduction may deduct up to $1,000 for single filers or $2,000 for married couples filing jointly for qualifying cash contributions to certain eligible organizations.

Permanent 60% AGI limit: The ceiling for qualifying cash contributions to public charities remains at 60% of AGI. Public Law 119-21 removed the scheduled expiration of that higher limit.

QCDs remain available: Qualified charitable distributions made directly from an eligible IRA to a qualified charity continue to be excluded from income rather than claimed as an itemized charitable deduction. Because they do not run through the itemized-deduction calculation, QCDs are not reduced by the new 0.5% floor.

The IRS confirms the new non-itemizer deduction beginning in 2026 and explains the documentation required for charitable gifts. Review IRS Topic No. 506.

Depending on your circumstances, charitable planning could involve:

• Cash contributions

• Appreciated securities

• Donor-advised funds

• Qualified charitable distributions

• Bunching multiple years of gifts into one tax year

• More complex charitable strategies for high-net-worth taxpayers

The tax treatment depends heavily on the type of contribution, the recipient organization, your income, whether you itemize, and other factors. For example, the new non-itemizer deduction is limited to qualifying cash gifts and does not automatically extend to every charitable vehicle.

The 0.5% floor may also make timing more important. Some itemizers may benefit from concentrating several years of planned giving into one year rather than making smaller gifts annually. However, the correct approach depends on your projected income, itemized deductions, charitable goals, and the rules that apply to the type of property being donated.

Qualified charitable distributions may remain particularly valuable for eligible IRA owners because a properly completed QCD is generally excluded from income and can count toward a required minimum distribution. The IRS explains QCD requirements in its IRA FAQs.

Before making a significant year-end gift, discuss the strategy with your tax and financial advisors. The amount given, the amount deductible, and the year in which the tax benefit is available may not be the same.

6. Evaluate Retirement and Investment Decisions

Retirement planning and tax planning should work together.

Before December 31, some taxpayers may want to evaluate issues such as:

• Retirement plan contributions

• Required minimum distributions, when applicable

• Roth conversion opportunities

• Investment gains and losses

• Portfolio rebalancing

• Qualified charitable distributions

• The tax impact of large withdrawals

The best decision is not necessarily the one that generates the lowest tax bill this year. Sometimes paying tax today can support a better long-term financial strategy. That is why tax projections are so valuable.

7. Consider State Taxes Too

Federal taxes are only one piece of the puzzle. State residency, business activity, investment property, and income earned across multiple states can create additional tax considerations.

This is particularly important for individuals who:

• Own homes in multiple states

• Spend significant amounts of time outside their home state

• Own rental or investment property elsewhere

• Operate businesses across state lines

• Are considering moving

• Are selling a business or major asset

Residency and domicile rules can be complex, and simply changing an address does not necessarily change your state tax obligations. If a major move is part of your financial strategy, discuss the potential tax consequences before making assumptions based on state tax rates alone.

8. Think About 2027 Before 2026 Ends

Good year-end planning does not stop on December 31. Some of the most valuable conversations you can have during Q4 involve what is expected to happen next year.

Are you planning to:

• Sell a business?

• Buy or sell significant real estate?

• Retire?

• Exercise stock options?

• Take a large retirement distribution?

• Transfer ownership of a family business?

• Make a significant gift?

• Move to another state?

• Receive a large bonus?

• Make a major investment?

Knowing about those events in advance gives your tax professional more opportunity to model potential outcomes. Finding out about a major transaction after it happens usually provides far fewer planning options.

Do Not Make Financial Decisions Based on Tax Headlines

Wealth taxes and proposals targeting high-income taxpayers tend to attract plenty of headlines. That does not mean you should immediately sell investments, move assets, establish complicated trusts, relocate to another state, or overhaul your financial strategy.

Proposed legislation is just that: proposed. Instead, use changing tax policy as motivation to stress-test your financial plan.

Ask yourself:

• What happens if my tax rate changes?

• How diversified is my wealth?

• How much of my net worth is illiquid?

• Do I know my approximate tax exposure for 2026?

• Are my estimated payments sufficient?

• Does my estate plan still reflect my wishes?

• Are my investment and tax advisors communicating?

• Are my business financials current enough to make planning decisions?

• Do I have any major transactions coming in 2027?

Those questions remain valuable regardless of whether a particular wealth-tax proposal ever becomes law.

Q4 Is the Time to Start Planning

December 31 has a funny way of arriving faster than expected. Once the year ends, many tax-planning opportunities end with it.

That makes the beginning of Q4 an ideal time to review your financial picture while there is still time to act.

At Kamish & Associates, CPA Firm, we believe tax planning should happen before tax season, not during it.

We work with individuals and business owners to evaluate their tax position, understand the impact of major financial decisions, and identify planning opportunities before the year closes.

If you have not reviewed your 2026 tax position yet, now is the time. Contact Kamish & Associates to schedule a year-end tax-planning conversation before December 31.

This article is intended for general educational purposes only and should not be considered individualized tax, legal, investment, or financial advice. Tax laws and legislative proposals can change. Your individual circumstances matter, so consult with appropriate tax, legal, and financial professionals before making significant financial decisions.