Year-End Tax Planning Could Look Different This Year
Year end is always a critical time for tax planning decisions.
For tax year 2025, these are some of the top considerations and strategies our Goldman Sachs Family Office is reviewing with clients.
Considerations
- Itemized deduction changes in 2026.The OBBBA created a new overall limit for taxpayers in the highest tax bracket which caps the maximum value of each dollar of itemized deductions at 35% (from 37% in 2025), starting in 2026.
- Taxpayers receive an income tax deduction when they make a charitable contribution.Beginning in 2026, a 0.5% adjusted gross income (AGI) floor will be instituted on charitable donations in addition to the cap on itemized deductions. Accelerating charitable donations to 2025 could be an attractive option for some taxpayers.
- Donating long-term appreciated securities.When these securities are donated, taxpayers generally receive a deduction based on the current fair market value and can avoid realizing embedded capital gains. The receiving charity may be able to avoid capital gains tax as well, but that depends on the organization’s structure. Work with your wealth advisor to review the tax implications of specific scenarios.
- The planned substantial reduction of the lifetime estate and gift tax exemption was canceled.The OBBBA increased the exemption to $15 million for 2026 (from $13.99 million in 2025)—rather than the scheduled reduction to pre-Tax Cuts & Jobs Act (TCJA) levels. Although this alleviates the urgency to make key estate planning decisions by year end, it is still an important wealth planning area to discuss with legal, tax, and wealth advisors.
- The state and local tax (SALT) deduction was increased.The SALT cap is increased from $10,000 to $40,000 for tax years 2025–2029. However, the ability to benefit from the increased cap begins to phase out for all taxpayers (single and joint filers) with modified adjusted gross income (MAGI) above $500,000 and is fully phased out for all taxpayers with MAGI of $600,000 or more.
- Business owners may be able to benefit from certain OBBBA provisions.Notably, a tax deduction for bonus depreciation was increased, allowing for 100% of the cost of qualified business property to be deducted—if it was acquired after January 19, 2025.
Timing Strategies
Determining when it would be most beneficial to realize income, gains, deductions, and losses depends on a taxpayer’s individual circumstances.
Consult with your tax and wealth advisors prior to implementing any tax planning strategies.
Common Strategies to Alter the Tax Year in Which Income/Gains are Realized
Timing income and gains can help to distribute tax liability into the years in which it will be most beneficial. Generally, taxpayers tend to defer income and gains to reduce their taxable income in the current year. However, it may make more sense in some cases to realize income and gains in the current tax year.
For example, in response to the OBBBA’s provisions around charitable giving, some taxpayers may benefit from accelerating income to take advantage of the charitable deduction in tax year 2025, as the benefit will be reduced in future tax years.
Common Strategies to Alter the Tax Year in Which Deductions/Losses are Realized
Itemized Deductions
Given 2025’s relatively high standard deduction ($15,750 for single filers / $31,500 for joint filers) and the fact that the increased SALT cap ($40,000) is not available to all taxpayers, itemizing may not be beneficial to all taxpayers. If potential itemized deductions exceed the standard deduction, accelerating itemized deductions may make sense.
Above-the-Line Deductions
Most taxpayers benefit from accelerating above-the-line deductions, which can push forward the realization of the tax benefit. For business-related deductions, there are additional considerations that could impact your timing strategies.
Consult your tax and wealth advisors about timing strategies around itemized or above-the-line deductions.
Our Year-End Tax Planning Guide
The Goldman Sachs Family Office has prepared a guide to assist taxpayers and their advisors as they consider a variety of tax-efficient strategies for 2025 year-end planning. Given the OBBBA’s impact on tax regulations, any actions should be considered carefully for broader wealth-planning implications. For more information on the OBBBA’s provisions, see our article Understanding the Personal Tax Implications of the OBBBA of 2025.
Contact your Goldman Sachs advisor for access to the full year-end planning guide. If you do not have a Goldman Sachs advisor, connect with us to learn more.
Aug 15, 2025 | 6 min read
This material is intended for educational purposes only and is provided solely on the basis that it will not constitute investment advice and will not form a primary basis for any personal or plan’s investment decisions. While it is based on information believed to be reliable, no warranty is given as to its accuracy or completeness and it should not be relied upon as such. Goldman Sachs & Co. LLC. (“Goldman Sachs”) is not a fiduciary with respect to any person or plan by reason of providing the material herein, information and opinions expressed by individuals other than Goldman Sachs employees do not necessarily reflect the view of Goldman Sachs.
This material is not an offer or solicitation with respect to the purchase or sale of any security in any jurisdiction. Investing involves risk, including the potential loss of money invested. Past performance does not guarantee future results. Neither asset diversification or investment in a continuous or periodic investment plan guarantees a profit or protects against a loss. Information and opinions provided herein are as of the date of this material only and are subject to change without notice.
Neither GS&Co., nor the Adviser provide legal advice to their clients, and all clients should consult with their own legal advisor regarding any potential strategy, investment, financial plan, estate plan or with respect to their interest in any employee benefit or retirement plan.
GS&Co. does not provide accounting or tax advice to its clients, unless explicitly agreed between the client and GS&Co. All clients should be aware that tax treatment is subject to change by law, in the future or retroactively, and clients should consult with their tax advisors regarding any potential strategy, investment, or transaction.
Certain information contained herein is based upon materials provided by third parties. We do not represent that such information is accurate and complete and it should not be relied upon as such.
This material may not, without Goldman Sachs’ prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorized agent of the recipient.
©2025 Goldman Sachs & Co. LLC. All Rights Reserved.
Goldman Sachs & Co. LLC is registered with the Securities and Exchange Commission (“SEC”) as both a broker-dealer and an investment adviser and is a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”).