Quick hits
Stat or Quote of the Month:
"An ounce of action is worth a ton of theory." - Ralph Waldo Emerson
Tax Tip of the Month
Q4 is when the "save a fortune on taxes" pitches get loud. On September 18, the IRS warned about promoters selling "Tribal Tax Credits" (also sold as "Native American" or "Sovereign Tribal" tax credits). They don't exist, and claiming them can bring penalties, interest, and even criminal charges.
Credits sold at a deep discount, or a request to sign a nondisclosure agreement before you get any details. If a tax deal sounds too good to be true, run it by your advisor first.
Read the IRS warning >
Finance Tip of the Month
Does your team travel for work? As of October 1, the IRS simplified per diem rates went up to $329 a day for high-cost cities and $230 a day everywhere else in the continental U.S. Pay travel through an accountable plan using these rates and your business gets a clean deduction, your employees get tax free reimbursements, and nobody has to chase a pile of meal receipts.
See IRS Notice 2026-60 >
Wealth Building Tip of the Month
Here's the wealth math most owners never run. Buyers value a business at a multiple of its profit, often 3x to 6x for practices and service businesses. So every extra $50,000 of yearly profit can add $150,000 to $300,000 to what you walk away with.
That's the path we build with clients: a Tax Savings Blueprint finds the tax dollars you're overpaying, the Breakaway Growth Accelerator turns them into lasting profit and gives you your time back, and a business that runs without you is the one buyers pay the most for. Keep more. Grow profit. Exit on your terms.
Essential Reads
How to Value a Healthcare Practice: What the EBITDA Multiple Actually Measures
Your net income and your practice value can be very different numbers. See how buyers adjust your profit, what multiples look like by specialty, and why a $50,000 bump in EBITDA can be worth six figures at sale. Read more >
How to Value a Dental Practice: The Financial Metrics That Actually Determine the Number
Five numbers drive what a buyer will pay for your dental practice. Here are the targets for each one, and how overhead control and tax planning alone can swing a valuation by $750,000. Read more >
Your Breakaway Growth Navigator
Q4 Tax Planning: Your Last Real Window
Last month, we finished SOAR with Phase 4: Retire. Building a business that can run, or sell, without you standing in the middle of it.
That wraps the series. Stabilize, Optimize, Accelerate, Retire. Four phases pointing at one goal: a business that funds your life.
As this lands in your inbox, there are 79 days left in 2026. After December 31, most of the moves that lower this year’s tax bill are gone. You can’t buy last year’s equipment in January.
April is when you find out what you owe. Q4 is when you decide it.
I know what it’s like to run a business in Q4. Holidays, year end pushes, a packed schedule. Tax planning slides to “after the holidays,” and by then all that’s left is tax reporting.
The Q4 Five: Moves With a December 31 Deadline
- Get your books current. Every move below depends on real numbers. If your books are three months behind, you’re planning blindfolded.
- Run a tax projection. Project this year’s profit through December and estimate the bill. Now you have a target, and every other move stops being a guess.
- Max out retirement contributions. Contributions to plans like a 401(k) or a cash balance plan lower your taxable income and build your wealth at the same time. Some plans must be set up before December 31 to count for 2026.
- Time your equipment purchases. Need equipment, technology, or a vehicle for the business? Section 179 and bonus depreciation may let you deduct much of the cost this year. The catch: it has to be placed in service by December 31. And never buy something you don’t need just to save tax. Spend a dollar to save 30 cents and you’re still out 70.
- Check your structure and your portfolio. Is your S corporation salary reasonable? Should your LLC elect S corporation status for 2027? Does your state’s pass through entity tax (PTET) election make sense? On the personal side, selling losing investments before year end can offset your gains. Each of these needs groundwork before the ball drops.
One warning: these moves affect each other. A bigger retirement contribution changes your projection. That’s why they work best as one coordinated plan.
This is the one month a year I’m going to push. We do tax planning and projections for clients in October and November. By mid-December, many options are off the table.
Client Story of the Month
We found a client about $56,000 a year in recurring tax savings, and it repeats every year they keep the plan in place. We got there with three moves: fine-tuning their retirement plan contributions, making the pass-through entity tax election, and "bunching" charitable gifts, which means grouping a few years of giving into one year so the deduction actually counts. Every one of those moves runs on a year end clock. Know someone with a big tax bill coming? We can help.
Who do you know that needs our services?
We're accepting new clients for...
- Multi-year strategic tax savings
- Proactive accounting, tax & advisory
- Tax resolution
- Forensic accounting and fraud investigations
Who do you know that needs our services? Let us know--we're happy to help!
A Question for You
What's one move you could make before December 31 that would change your 2026 tax bill?
Until next month,
Your Red Bike Advisors Team
About Red Bike Advisors
We're on a mission to help small business owners simplify, streamline, and save. From compliance and finance & tax strategy to lifetime wealth-building & financial retirement, we bring in clarity, growth, and peace of mind.
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