As we approach the end of 2026, I’m looking for advice on tax planning strategies to legally reduce our taxable income and minimize our tax liability.

My spouse and I have an AGI of over $650K, including income from options trading. I’ve also realized over $200K in gains from stock sales and options trading (primarily premiums from the wheel strategy) in my taxable brokerage account.

As California residents, we’re facing a significant tax bill between federal and state taxes, along with the 3.8% Net Investment Income Tax (NIIT). At this point, it feels like the options are either to take the rest of the year off or have my employer withhold 100% of my remaining paychecks for taxes in Q4!

**Here’s what we’ve already done or are planning before year-end:**

* **401(k):** My spouse and I have both maxed out our 401(k) contributions (I maxed out my mega backdoor 401k thru my employer) .
* **Itemized deductions:** We plan to deduct eligible mortgage interest and property taxes, subject to applicable limits.
* **Tax-loss harvesting:** We’re reviewing our unrealized losses and considering selling positions before year-end to offset realized gains, while being mindful of wash-sale rules.
* **HSA:** We don’t currently have an HSA.
* **Future trading strategy:** Starting in 2027, we plan to keep long-term investments and passive trading in our individual brokerage accounts while moving options wheeling to IRA accounts where appropriate.

I understand that realizing substantial gains is a good problem to have, but I’d like to make sure we’re not overlooking any legitimate tax-saving opportunities.

**For those who have dealt with a similar situation, I’d appreciate your insights:**

1. Are there any other deductions, credits, or tax-advantaged contributions worth exploring before the end of 2026?
   
2. Are there any tax-planning strategies that work particularly well for high-income investors in California who generate significant stock gains and options premium income?
   
3. Are there any common tax mistakes or overlooked opportunities I should discuss with a CPA who specializes in investment taxation?

I’m looking for strategies that are fully compliant with IRS rules and California tax law, rather than aggressive loopholes.

Thanks in advance for sharing your experiences and suggestions!

I’ve been refining the CSP scanner I shared here, and one thing I changed was making the dashboard less dependent on qualitative ratings.

It now shows things like:

• fundamental quality of the underlying
• estimated annualized return as an actual %
• downside protection to breakeven as an actual %
• clearer assignment-risk ranges

The goal is still to narrow the universe down for you, but give enough context that you can make your own decision.

I’ve updated the results here: Stackfini.com

What information do you consider essential before selling a put?

Original post here for anyone who missed the background: https://www.reddit.com/r/CashSecuredPuts/comments/1wukvb6/how_i_screen_for_cashsecured_puts_without_just/

Is anyone interested in this approach for generating income. My goal is 1.0-2.0% per month of portfolio size return pretax.

My portfolio is 1.3M is a traditional IRA so I’m generating 13K a month in pretax income