Many private lenders and business owners are focused on day-to-day operations and typically only address taxes when it’s time to file their return. Unfortunately, waiting until year-end can mean missing valuable opportunities to reduce tax liabilities and maximize available tax benefits.
Tax planning should happen throughout the year, not just during tax season. Regular reviews can help you better manage your tax liabilities and take advantage of available tax-saving strategies.
Here’s some good news for California business owners: beginning in 2026, businesses that miss or underpay the required June 15 PTE payment may still be eligible to make the PTE election.
Under the previous rules:
- Missing the June 15 PTE payment generally meant losing eligibility for the election for that tax year
Starting in 2026 through 2030:
- Businesses may still make the PTE election even if the June 15 payment is missed or underpaid
- The available PTE tax credit may be reduced rather than completely lost
- The reduction is 12.5% of the qualified taxpayer’s pro rata share of the unpaid required June 15 payment
This change provides additional flexibility and may allow taxpayers who missed the June payment deadline to still benefit from the PTE election. It also demonstrates how tax laws continue to evolve, creating new opportunities for business owners.
Staying informed about these changes is one of the key benefits of year-round tax planning. Regular tax reviews can help you identify planning opportunities, maximize available tax benefits, and avoid costly surprises.
Don’t wait until tax season to start thinking about tax savings. Contact us to learn more about how we can help you keep more of what you earn.