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For many individuals and business owners, taxes are an annual chore. You gather your documents, hand them to your accountant, cross your fingers, and hope for a refund (or at least a small tax bill).

This approach is called passive tax preparation — and while it might keep you compliant, it’s leaving money on the table.

The better path?

Active tax planning. Especially before Q3 ends.

Let’s break down the difference — and how you can shift gears before it’s too late to impact your 2025 tax bill.

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Passive Tax Prep vs. Active Tax Planning

What is Passive Tax Prep?

It’s what most people do:

• Collect W-2s, 1099s, receipts

• Submit them to your tax pro in March or April

• Hope everything works out

The problem? At that point, the tax year is over. There’s little your accountant can do to change your tax liability.

What is Active Tax Planning?

It’s a proactive, year-round strategy focused on:

• Lowering your tax bill before the year ends

• Making intentional moves in Q3 and Q4 that directly impact your tax outcome

• Leveraging the tax code to your advantage — legally and efficiently

And Q3 (July–September) is your critical window.

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Why Q3 is a Make-or-Break Tax Window

Most powerful tax strategies need to be in place before December 31st. Waiting until Q4 — or worse, tax season — is often too late.

Here’s why Q3 matters:

• You still have 6 months of financial visibility to project income

• It’s a prime time to adjust salaries, business structure, or retirement contributions

• There’s still time to shift strategies without scrambling

Think of Q3 as your tax “halftime.” The score isn’t final, but now’s your chance to change the game plan.

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5 Moves to Shift into Active Tax Planning (Before It’s Too Late)

1. Run a Mid-Year Tax Projection

• Work with a CPA or use a projection tool to estimate your current tax liability.

• Know if you’re under- or overpaying, and correct course now.

2. Review Business Entity Structure

• Should you be an S Corp instead of an LLC?

• The right structure could save you thousands in self-employment taxes.

3. Time Big Expenses Strategically

• Planning a major purchase or equipment upgrade?

• Placing it in Q3 or Q4 could trigger bonus depreciation or Section 179 deductions.

4. Maximize Retirement Contributions

• SEP IRAs, Solo 401(k)s, or Defined Benefit Plans can slash taxable income.

• Use Q3 to increase contributions (especially if cash flow is strong).

5. Implement Income-Splitting or Family Strategies

• Hiring your kids, gifting appreciated assets, or income-shifting through trusts all work best when planned ahead — not in February.

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How to Take Action This Quarter

If you’ve only been doing tax prep, it’s time to level up.

Here’s your Q3 checklist:

✅ Schedule a mid-year meeting with your CPA or tax strategist

✅ Review year-to-date P&L and cash flow statements

✅ Revisit your goals — are you optimizing for lowest tax, most retirement savings, or highest investable cash?

✅ Implement any high-impact strategies by September 30th

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Final Thoughts

Taxes aren’t just about paperwork — they’re about strategy.

The wealthy don’t just “do their taxes.” They plan for them. They make moves in July, August, and September that save five or six figures come April.

The difference between reactive and proactive tax planning could be the difference between a painful tax bill — or an extra vacation, retirement boost, or investment opportunity.

Before Q3 slips away, take the reins.

Because the best tax savings don’t happen by accident — they happen by design.

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Want personalized help shifting from tax prep to tax strategy?

Let’s schedule a planning call:

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