Year-end tax strategies every roofing business owner should be thinking about

By Exit Stage Left Advisors.

Four ways roofers leave money on the table. 

As 2026 winds down, most roofing owners are focused on finishing projects, collecting receivables and preparing for next year. But before December 31, there is another conversation worth having with your CPA: Are you taking advantage of the tax and retirement strategies still available to you to reduce your burden?

Here are a few areas worth reviewing before we begin 2027:

1 - Maximize your 401(k).

Exit Stage Left Advisors President Ted Jenkin recently discussed 401(k) strategy on the Today Show, and year-end is an ideal time to review your contributions. For 2026, employees can defer up to $24,500 into most 401(k) plans. Those 50 and older can generally contribute an additional $8,000, while participants ages 60–63 have a higher $11,250 catch-up limit.

Business owners should also talk with their advisors about employer contributions and the design of their retirement plan. Depending on the plan and circumstances, total defined-contribution plan contributions can reach $72,000 in 2026 before applicable catch-up contributions.

2 - Review equipment and capital purchases.

If you are planning to purchase vehicles, machinery, technology or other equipment, talk with your CPA. For example, purchases you already need should be placed in service before year-end and whether Section 179 or other depreciation rules apply. Owners sometimes purchase the deduction, but the investment should make business sense first.

3 - Revisit estimated taxes.

This business can be seasonal, and a strong second half can leave owners underpaid on estimated taxes. S-corporation shareholders, partners and sole proprietors may need to adjust estimated payments based on actual full-year performance.

4 - Don't wait until tax season to plan.

By the time your CPA prepares your return, some planning opportunities may already be gone. Schedule a year-end meeting now and bring your CPA, financial advisor and other advisors into the conversation. This is one of the biggest mistakes we see business owners make, not meeting with their CPA quarterly.

These same philosophies apply to selling your roofing company. The best tax and exit strategies are developed before you need them.

At Exit Stage Left Advisors, we help roofing owners prepare years in advance to maximize what they receive and ultimately what they keep, when the time comes to exit.

Learn more at www.wesellroofers.com.