What You Can Still Do for 2025 Taxes in 2026 (and the Best Strategies for 2026)

1) What You Can Still Do for 2025 in 2026

IRA contributions (Roth or Traditional)

Nate emphasizes that IRA contributions are one of the few common moves that can still be made after the year ends, as long as they’re completed by the April 15 filing deadline.

HSA contributions

HSAs are also called out as a post-year-end move:

• You can still contribute for the prior year by the filing deadline, but
• If you contribute outside payroll after year-end, you may miss certain payroll-related advantages.

Cost segregation studies (no need to panic by 12/31)

You don’t need to finish a cost segregation study before December 31.

Thomas adds the critical nuance investors miss:

• The property must have been acquired and placed in service during 2025 if you want to claim 2025 depreciation and cost seg benefits.
• For STR investors, the STR strategy also requires guest stays during 2025 to establish average period of customer use.

Bottom line: You can finish the report later, but you can’t “create” 2025 eligibility after the year ends.

If you missed it in 2025, you’re not “out”

Nate makes a practical point: if you didn’t hit the requirements for 2025, that doesn’t mean the strategy is dead. It often means you’re just executing it in 2026 instead.

2) Top Tax Strategies to Focus on in 2026

Short-Term Rental “Loophole” + cost seg + 100% bonus depreciation

Thomas frames this as the flagship strategy for:

• High W-2 earners
• Business owners
• Part-time real estate investors who can’t meet REPS requirements

Key ingredients they reiterate:

• Average stay generally 7 days or less
• Material participation
• Cost segregation to accelerate depreciation
• Ability to use losses against W-2/active income when structured correctly

They also note there’s been no federal tax change targeting the STR rules, though local/state restrictions and HOA rules can affect where STRs are viable operationally.

Oil & gas (working interest funds)

Nate calls out oil & gas as a strategy that can generate meaningful deductions with less day-to-day involvement than real estate operations, but also warns (and Thomas echoes) the classic principle:

Don’t let the tax tail wag the dog.
Provider quality and investment fundamentals matter.

Real Estate Professional Status (REPS)

Thomas reinforces that REPS remains a major strategy for:

• Long-term rental investors
• Mid-term rental investors

who can meet the time and participation requirements.

And the best part: if you’re listening in early January, you’ve got a fresh year to execute cleanly.

1031 exchanges (and the “lazy 1031” alternative)

Nate points to 1031s as powerful but “golden handcuffs” due to the strict:

• 45-day identification deadline
• 180-day completion deadline

Thomas explains the alternative they call the lazy 1031:

• Sell a property and buy another property in the same tax year
• Use cost seg/bonus depreciation on the new property to offset gain (including depreciation recapture) from the sale

Important constraint:

• Lazy 1031 requires both sale + purchase to happen between January 1 and December 31 of the same year.
• A traditional 1031 can cross tax years.

Qualified Opportunity Zones (QOZ) in 2026 (and 2027 changes)

Nate explains the 2026–2027 landscape at a high level:

• 2026 is when many investors will be forced to recognize previously deferred gains (the “piper comes to pay” concept).
• There may be planning opportunities to reinvest into new QOZ structures depending on how gains flow (especially via partnerships/K-1 timing), potentially positioning investors to take advantage of new rule sets starting in 2027.

(They keep this at strategy level and emphasize structure/timing matters.)

S-corporations for self-employment tax planning

Thomas notes S-corps remain a core tool for business owners to reduce exposure to self-employment taxes (when properly structured).

Nate adds a caution:

• Some states and professions have additional legal/structural friction with S-corps.
• Federal tax treatment may differ from state-level rules, so coordinate with an advisor before implementing.

3) What You Can No Longer Do After 2025

Residential solar credit (primary residence)

Nate highlights that solar credits for primary residences are no longer available after 2025 (as discussed in the episode), while:

• Some business solar credit planning may still exist for a limited window beyond that.

Charitable contribution changes and limitations

Nate briefly touches on new dynamics around charitable deductions, including:

• A “haircut” concept tied to AGI for certain itemizers
• New deduction availability for certain non-itemizers (cash contributions)

(They don’t go deep here, but flag it as a change worth knowing going into 2026.)

Closing: Start 2026 With a Real Tax Plan

They wrap with a simple message: if you want to reduce taxes in 2026, don’t wait until December. Build a plan early, execute throughout the year, and give yourself time to meet the requirements (placed in service, guest stays, REP hours, documentation, etc.).

They also preview upcoming content for 2026:

• A new short-term rental tax court case episode
• More investor interviews and portfolio stories
• Ongoing strategy updates as the year unfolds

Use the year-end checklist, and if you want to “come out of the gate running,” start planning early for 2026, especially with 100% bonus depreciation back in the mix

Disclaimer: This podcast summary was generated from the transcript and may contain some errors or miss key points from the audio recording.