Making the Most of a Peak Income Year

Tax Planning Considerations for High-Earning Years

Some years are financial outliers. A liquidity event. A business windfall. A banner compensation year.

When income spikes above your “normal,” the tax impact can spike with it.

This guide explores practical, timing-based strategies often considered when income is temporarily elevated and expected to decline in a future year.

Inside the Guide

Thoughtful deduction timing
How accelerating eligible expenses may help reduce taxable income in high-earning years.

Business owner opportunities
Prepaid expenses, supplies, Section 179, and bonus depreciation considerations.

Retirement contribution strategies
Solo 401(k), SEP-IRA, and defined benefit plan concepts for managing taxable income.

Itemized deduction planning
Charitable giving, State and Local Tax (SALT) limitations, and medical expense thresholds.

Income deferral principles
Constructive receipt rules and installment sale timing dynamics.

Key thresholds to monitor
Qualified Business Income (QBI) deduction phase-outs, contribution caps, and other tax-sensitive limits.

Why This Matters

Peak-income years create planning opportunities — but also introduce complexity.

Tax rules are filled with phase-outs, limits, and technical requirements that can materially change outcomes.

This isn’t about “last-minute tips.”

It’s about aligning timing, regulation, and long-term strategy.

Investment advisory and financial planning services offered through Bleakley Financial Group, LLC, an SEC registered investment adviser, doing business as OnePoint BFG Wealth Partners (herein referred to as “OnePoint BFG”).

OnePoint BFG often uses Artificial Intelligence (“AI”) in the generation of marketing and advertising and has established policies to ensure all AI generated material goes through human review prior to dissemination. This communication has been provided for general informational and discussion purposes only, and should not be considered as investment, legal or tax advice or as a recommendation. OnePoint BFG does not represent any third-party information used as its own. Please contact your legal counsel or tax advisor to recommend the application of this general information to any particular situation or prepare an instrument chosen to implement the design discussed herein.

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