Maria Reyes

MediumDraftingProspect

W-2SingleMA, NHMeera KapoorAnnualReturn on file

Est. current income

$268,000

vs $214,000 prior year

Effective rate

22.4%

Marginal bracket

32% ordinary

Dec 31 hard stops

Maria Reyes

2026 Year-End Planning Summary

~$3K–$8K of federal tax addressed across a withholding fix and the new rental's depreciation setup, with a small Q4 true-up.

Est. income

$268,000

vs $214,000

Effective rate

22.4%

Marginal

32% ordinary

Key changes

flagged

1. Current-Year Action Items

Time-sensitive moves before December 31.

Set up depreciation and a cost segregation on the new rental

Dec 31 hard stop

Client response: "I bought a rental property this year."

A first rental should be set up correctly from the start: basis split between non-depreciable land and the building, with a cost-segregation study identifying 5- and 15-year components eligible for 100% bonus depreciation. At this income the §469 passive-loss limits may defer some benefit, but the depreciation schedule and any current offset against rental income still matter.

$3,000–$7,000 of first-year tax reduced

Assumes placing the rental in service in 2026 with proper basis allocation (land vs. improvements) and a cost-segregation study accelerating 5/15-year components eligible for 100% bonus depreciation (post-OBBBA). Passive-loss rules (§469) may limit current use at this income.

Without action

Without proper basis allocation and a cost-seg study, first-year depreciation is understated and benefits are left on the table.

With the plan

$3K–$7K of first-year tax reduced; depreciation set up correctly going forward.

DeadlineDecember 31, 2026 (placed in service)

OwnerBoth

AuthorityIRC §168IRC §168(k)IRC §469

Correct under-withholding after the job change

PYR + current W-2: new employer withholding set to the single/standard default; income up ~25%.

A mid-year employer change with a severance payout frequently leaves cumulative withholding short of the safe harbor. A revised W-4 for the remainder of the year — or a modest Q4 estimate — closes the small gap and avoids both a penalty and an April surprise.

$1,000–$2,500 of penalty/surprise-balance avoided

Assumes the §6654 safe harbor — 110% of 2025 tax ($39,000) = $42,900 — is not yet met; $40,000 withheld leaves a $2,900 gap. Mid-year job change with severance commonly leaves withholding misaligned.

Without action

~$2,900 short of the safe harbor; small penalty plus an April balance due.

With the plan

Safe harbor met; no penalty or surprise.

DeadlineJanuary 15, 2027 (Q4 voucher)

OwnerClient

AuthorityIRC §6654IRC §3402

2. Long-Term Opportunities

Multi-year planning to revisit beyond this season.

3. Open Questions for the CPA

Items to resolve before the client conversation.

Severance timing — confirm the payment year and withholding

Severance can be paid in a lump sum or over time, and supplemental wages have their own withholding rules; deferred arrangements can raise §409A issues. We need to confirm the timing and withholding before projecting the year accurately.

OwnerCPA

Elan

Grounded on Maria Reyes

Nothing outstanding for Maria Reyes right now.

Elan brought this to you

Nothing needs you for Maria Reyes right now.