TAX PLANNING

Tax Planning

Pay Less. Keep More. Plan Ahead.

The best time to reduce your tax bill is before the year ends — not when you are sitting across from your tax professional in April wondering what happened.

Year-round proactive tax planning for small business owners and individuals across Washington State.

Virtual statewide. In person at our Bothell office.

Call +1 (425) 699-6990

WHO IT'S FOR

Who Needs Tax Planning

Tax planning is not just for the wealthy. It is for anyone who wants to stop being surprised in April.

Small Business Owners

S-Corps, LLCs, sole proprietors, and partnerships who want to reduce self-employment and income tax.

High Income Individuals

Tech workers, real estate investors, and professionals with growing investment income.

Growing Businesses

Businesses scaling revenue, adding employees, or expanding to multiple locations.

Life Event Situations

Marriage, divorce, home purchase, new baby, inheritance, or business sale creating major tax events.

Tax Preparation Looks Back. Tax Planning Looks Forward.

WITHOUT PLANNING

Surprised by large April tax bills
Missing retirement contribution deadlines
Wrong business structure costing thousands
Paying estimated taxes incorrectly
Missing deductions that expired

WITH PLANNING

Know your tax liability all year
Maximize retirement contributions on time
Operating under the right entity structure
Accurate quarterly estimated payments
Every deduction captured before year end

WHAT WE DO

Tax Planning Strategies

Every strategy is specific to your situation. These are the areas we focus on most.

Business Strategies

S-Corp election timing, Reasonable compensation analysis, Retirement plan setup, QBI deduction optimization, Timing of income and expenses

Real Estate Strategies

Cost segregation, Depreciation acceleration, 1031 exchange planning, Qualified opportunity zone investments, Short vs long term gain planning

Retirement & Investment

Solo 401k setup, SEP IRA contributions, Tax loss harvesting, Capital gain timing, Roth conversion analysis, Deferred compensation planning

When Tax Planning Happens

Jan – Mar

Review last year's results for planning opportunities
Set up quarterly estimated payments
Prior-year IRA and HSA contribution decisions

Apr – Jun

Review Q1 estimated payments
Retirement contribution review
Entity structure review

Jul – Sep

Mid-year tax review
Adjust withholding and estimated payments
Investment gain and loss review

Oct – Dec

Year-end planning session
Final retirement contribution decisions
Deduction bunching strategies

WASHINGTON

Planning for Washington's Tax Rules

Washington's rules create planning opportunities that most federal-only advice misses. The state has no income tax on wages today, but its capital gains tax applies to long-term gains on assets such as stocks: 7% above an annual standard deduction ($278,000 for 2025), plus an additional 2.9% on gains above $1 million. Real estate and retirement accounts are exempt. Timing when you sell appreciated stock — and in which year — can change what you owe.

In 2026 the legislature enacted a 9.9% tax on Washington taxable income above a $1 million standard deduction (ESSB 6346), starting with income earned in 2028, and it currently faces legal challenges. For business owners planning a sale, executives with large equity awards, and investors approaching that level, 2026 and 2027 are the planning window.

Federal rules changed too. The One Big Beautiful Bill Act, signed July 4, 2025, made 100% bonus depreciation permanent for property acquired after January 19, 2025, made the QBI deduction permanent, raised the SALT cap to $40,400 for 2026 with a phase-down at higher incomes, and changed how charitable gifts are deducted starting in 2026. Each of these belongs in a current-year plan, not a filing-season surprise.

Real estate investors should also read our page for real estate investors, and construction owners our page for general contractors. We meet planning clients in person through our Bothell tax preparation office and virtually across the Eastside, including Redmond. For a starting point, see when to start tax planning and our year-end tax planning checklist.

COMMON MISTAKES

Planning Mistakes We See

Most expensive tax surprises start as a decision made without the tax picture in view.

Waiting Until April

By the time your return is prepared, most strategies for that year have expired. Planning works on the current year.

Ignoring Withholding After a Big RSU Vest

Supplemental withholding on equity income is often lower than your actual rate. Adjusting estimated payments mid-year avoids a large balance due.

Electing S-Corp Without a Payroll Plan

The election only saves tax when you run payroll, pay yourself a reasonable salary, and file the separate return every year.

Selling Stock Without Checking Washington's Capital Gains Tax

Gains above the annual standard deduction are taxed by Washington even though wages are not. Spreading sales across years can matter.

Missing Retirement Contribution Deadlines

IRA and HSA contributions for the prior year can be made until the April filing deadline, and SEP IRA contributions until your filing deadline including extensions — but some plans must be set up before year end.

WHAT TO HAVE READY

Bring These to Your First Planning Session

The more complete the picture, the more specific the plan.

Last two years of tax returns
Year-to-date pay stubs
Year-to-date business profit and loss
RSU, ESPP, and option statements
Brokerage statements
Retirement account balances
Estimated payments made this year
Expected major events this year

How Tax Planning Works With PBX

Discovery — We review your current tax situation, entity structure, income and goals

Strategy — We build a customized planning roadmap specific to your situation and financial goals

Implementation — We implement the strategy throughout the year and adjust as your situation changes

PRICING

What It Costs

Tax planning engagements are quoted based on the complexity of your financial situation — income sources, entity structures, investments, and goals.

See tax planning pricing →

Tax Planning Engagement$300 – $1,500

Most engagements range from $300 to $1,500 depending on complexity — from a one-time strategy session to ongoing quarterly advisory. Your exact quote is confirmed before we begin.

Common Questions

Tax preparation reports what already happened after the year ends. Tax planning is proactive strategy during the year — timing income and expenses, choosing the right entity, and funding retirement accounts — so you owe less when you file.

As early in the year as possible, and always before December 31. Most planning strategies only work while the tax year is still open. See when to start tax planning.

Not on wages today. In 2026 the legislature enacted a 9.9% tax on Washington taxable income above a $1 million standard deduction (ESSB 6346), but it applies to income earned in 2028 and later, with first payments due in 2029, and it currently faces legal challenges.

It applies to long-term gains on assets such as stocks and funds above an annual standard deduction ($278,000 for 2025) at 7%, plus an additional 2.9% on gains above $1 million. Real estate and retirement accounts are exempt, so which assets you sell — and when — matters.

Only in limited ways. Prior-year IRA and HSA contributions can be made until the April filing deadline, and SEP IRA contributions until your filing deadline including extensions. Most other strategies must happen before the year ends.

It depends on your net profit, what a reasonable salary for your role would be, and the added cost of payroll and a separate return. We model the before-and-after for your numbers as part of planning — see business formation for how the election is filed.

You get a written plan with the specific actions and deadlines for your situation. Ongoing engagements revisit the plan during the year as your income and circumstances change.

Most engagements range from $300 to $1,500 depending on complexity — from a one-time strategy session to ongoing quarterly advisory. Your exact quote is confirmed before we begin. See tax planning pricing.

RELATED SERVICES

GET STARTED

Stop Paying More Than You Owe

The best time to start tax planning is before the year ends. Schedule a free consultation — no obligation.