If you’re in the Denver metro area and have $2 million or more invested, tax planning isn’t something you should think about just once a year; it’s something that should be built into your wealth-building and management processes on an ongoing basis.
With the latest updates tied to the OBBBA (often called the “One Big Beautiful Bill”), you’re dealing with a new set of rules that can influence how deductions, income, and long-term planning decisions fit together. The real challenge isn’t just understanding what changed; it’s figuring out how those changes apply to your specific situation, including your income sources, investments, business interests, and long-term goals.
This is where working with a team focused on wealth management in Denver can make a difference. It’s not that the tax laws are new; it’s that they’re changing more often and becoming more complex, making ongoing coordination more important than ever.
Below are five strategies worth evaluating in light of the 2026 tax law changes and how they may fit into your broader financial plan in Denver, Colorado.
Strategy 1: Are You Taking Full Advantage of Expanded Deductions?
One of the more meaningful changes under the OBBBA is the expansion, phasing, or restructuring of certain deductions, especially for higher-income households. While not every change applies across the board, several areas warrant closer examination for how they interact with income levels, business ownership, and itemization strategies.
At a high level, the changes tend to focus less on introducing entirely new deductions and more on adjusting how existing ones are applied. That distinction matters because it creates planning opportunities if you’re paying attention to timing and structure.
Here are some areas to consider:
- State and Local Tax (SALT) Adjustments
One of the most talked-about changes involves modifications to SALT deduction limitations. While caps may still exist, certain provisions have been adjusted or expanded to benefit high-income earners, particularly if you are a business owner who can utilize pass-through entity tax (PTET) elections.
For you, this could mean revisiting how state taxes are paid and deducted, especially in a state like Colorado, where income taxes play a meaningful role in your overall tax liabilities. - Qualified Business Income (QBI) Deduction Refinements
If you have business income, updates to QBI rules may affect eligibility thresholds, phase-outs, or calculation methods. Depending on your structure, LLC, S-corp, or partnership, there may be opportunities to revisit how income is reported and whether adjustments to compensation or distributions make sense within the updated framework.
This is one of those areas where small changes in structure can have an outsized impact. - Charitable Contribution Enhancements
The OBBBA includes provisions that may expand how charitable deductions are applied, particularly for those who itemize their deductions. This can include higher deduction limits relative to income or more flexibility in how contributions are structured.
For you, this could mean coordinating charitable giving with high-income years, rather than treating it as a standalone decision. - Accelerated Depreciation and Business Deductions
If you own real estate or operate a business, changes to depreciation rules, such as bonus depreciation or Section 179 expensing, may allow for more front-loaded deductions. This can create opportunities to offset income in years where earnings are higher.
Think of this like choosing when to recognize expenses rather than whether the opportunities exist. - Itemization vs. Standard Deduction Planning
With adjustments to deduction thresholds, it may be worth re-evaluating whether itemizing continues to provide value each year. In some cases, “bunching” deductions and grouping them into specific tax years can help you cross thresholds and maximize their impact.
What ties these changes together is a coordinated approach. The OBBBA updates don’t operate in isolation; they interact directly with your income timing, investment decisions, and overall financial structure. This is where a partnership with a Denver wealth management team that operates like a family office becomes essential.
While the technical side of these deductions is important, the real value lies in how they are managed over time. Tyler Boon, President and Founder of Jupiter Wealth, offers this perspective on the shift:
“Most people hear ‘tax changes’ and wait for a single, massive shift. But with the OBBBA, the real opportunity is in the nuance of how existing deductions are applied. Whether it’s leveraging PTET elections for your business or strategically ‘bunching’ charitable gifts, these aren’t just line items; they are active levers we can pull to protect your wealth throughout the year, not just in April.”
Strategy 2: How Should You Time Income in a Changing Tax Environment?
The OBBBA has introduced updates that can shift how different types of income are taxed, particularly as you move into higher income brackets. That makes timing less of a tactical afterthought and more of an ongoing planning process.
If you have flexibility for when income is recognized, you have more control than you might think. The question becomes: when does it make the most sense to take that income based on your broader financial picture?
Q: Why does timing matter more now than it used to?
A: Tax brackets, deduction limits, and phaseouts can all change from year to year. Under the new rules, certain thresholds may impact how much of your income is taxed at higher rates or how much you can deduct.
If a large portion of your income hits in a single year, it can push you into less favorable territory, higher marginal rates, reduced deductions, or additional surtaxes.
Think of it like pouring water into a glass. Pour too much at once, and it spills over. Spread it out, and you stay within the limits.
Q: What types of income give you the most flexibility?
A: If your financial life includes multiple income sources, you may have more control over timing than someone with only a fixed salary. Common examples include:
- Bonuses or deferred compensation: You may have options on when these are paid or recognized
- Stock options (ISOs/NSOs) and RSUs: Exercising or selling can often be timed strategically
- Business income or distributions: Owners may have flexibility in when income is taken
- Capital gains: You decide when to sell and realize gains
Each of these creates an opportunity to coordinate income with your broader tax picture.
Q: What are some practical ways you might approach timing?
A: While every situation is different, a few common approaches include:
- Deferring income into a future year if you expect to be in a lower tax bracket
- Accelerating income into the current year if rates are expected to increase or deductions are more favorable now
- Pairing income with deductions so they offset each other within the same tax year
- Spreading income events over multiple years to avoid sharp spikes
This isn’t about guessing where tax rates will go in the future; it’s about making informed financial decisions based on what you know today and how your income flows.
Q: How does this fit into your overall tax planning strategy?
A: Timing income doesn’t happen in isolation. It connects directly to your investments, your deductions, and even your long-term planning decisions. For example, exercising stock options in the same year you realize large capital gains could create a very different outcome than spreading those events across multiple years. Similarly, taking a larger distribution in a year where deductions are limited may reduce tax efficiency.
This is where coordination matters. If each decision is made separately, you may miss how they interact.
Our team of Denver investment advisors can assist with modeling these types of decisions in advance rather than reacting at tax time, so you’re planning throughout the year based on how your income flows.
Read our newest Quick Guide: Why Are Family Office Services Essential for Managing Multi-Generational Wealth?
Strategy 3: Are You Positioning Investments for Tax Efficiency?
Investment decisions and tax outcomes are closely tied, but they’re often managed separately. Under the updated OBBBA rules, there may be more value in aligning those two areas.
If your portfolio includes taxable brokerage accounts, private investments, or concentrated stock positions, the way gains and losses are realized can have a meaningful impact.
You should review these items with a Denver-based wealth manager:
- Opportunities for tax-loss harvesting to offset gains
- The balance between short-term and long-term capital gains
- Asset location strategies (which investments are held in taxable vs. tax-advantaged accounts)
Remember that your investment strategy isn’t just about returns; it’s also about how returns are treated from a tax perspective to produce higher net returns.
Strategy 4: How Can You Use Gifting and Estate Planning More Effectively?
The OBBBA also highlights estate and gift tax considerations, especially amid ongoing discussions about future exemption changes. If you’re thinking about transferring wealth to the next generation, timing and structure matter.
If your estate is approaching or exceeding current thresholds, you may want to explore:
- Annual gifting strategies to reduce your taxable estate
- Use of trusts to manage how assets are transferred
- Coordinating charitable giving with tax planning
This is less about giving assets away and more about deciding how and when transfers occur.
Think of it like passing down a business. The structure you choose affects not just what is transferred, but how it is received and managed.
This often becomes part of a long-term planning discussion that connects estate planning, tax strategy, and families’ philanthropic goals.
Strategy 5: Are You Coordinating All Moving Parts of Your Financial Plan?
One of the biggest takeaways from recent tax changes isn’t tied to a single rule; it’s the growing importance of coordination.
Taxes don’t exist in isolation. They connect to your investments, income, estate plan, and the pursuit of long-term goals. When those areas are managed separately, opportunities can be missed.
Here are some of the questions that we look at when developing a tax plan for clients:
- Are your tax strategies aligned with your investment decisions?
- Are income decisions being made with tax implications in mind?
- Is your estate plan coordinated with current tax laws?
If each piece is handled independently, everything may function, but not as efficiently as it could. This is where working with a wealth manager in Denver becomes essential; the goal isn’t just to manage investments, but to ensure every element of your financial life supports the others.
Ultimately, the effectiveness of any tax strategy depends on this level of integration. As Tyler Boon, President and Founder of Jupiter Wealth, often emphasizes:
“I often tell our clients that a tax strategy is only as strong as the communication between your moving parts. You can have a great investment portfolio and a solid estate plan, but if they aren’t ‘talking’ to the current tax law, you’re likely leaving money on the table. Our goal is to ensure your income, investments, and legacy goals are all pulling in the same direction.”
What Should You Be Paying Attention to in 2026?
The OBBBA changes don’t necessarily require dramatic shifts in your strategy. But they do highlight the importance of staying aware of how tax rules evolve, and how those changes interact with your broader financial picture.
If you have a complex financial life that includes multiple income streams, investment accounts, or estate considerations, the value often lies in how well those pieces work together.
Talk with our team of investment advisors today about your tax planning needs.
