TAX PLANNING

We are accepting new clients for the new Tax Season!

Who Needs Tax Planning

None of us wants to pay more tax than required by law. You’ve probably read or heard of various tax deductions or credits, but how do you know which ones are legitimate and whether they actually apply to you? Instead of taking the time to study the tax code, treasury regulations, and court cases, as well as take regular courses to learn how to apply them, just talk to someone who already has, who can answer your questions and provide solutions for your situation.

If you share some of these questions, have others, or just don’t know where to start, contact us to see how you can keep more of the money you earn.

Pricing

Tax Consulting

$240/hour

(New clients 1 hr minimum and appointment must be prepaid)

New Business Consulting

$400 for a 2-hour session

What Is Tax Planning?

Tax planning is the process of organizing your financial affairs in a way that minimizes your tax liability. It involves anticipating and estimating your tax liability for the coming year and taking steps to reduce that liability through effective use of deductions, credits, and other tax-saving strategies. Tax planning is a proactive approach to managing your finances and ensuring that you’re paying only what you owe in taxes. It can help you save money, minimize your risk of audit, and ensure that you’re in compliance with tax laws and regulations.

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How Tax Planning Works

Tax planning begins by estimating your tax liability for the coming year and considering your overall financial goals and objectives. Based on this analysis, a tax planner will make recommendations for changes to your financial situation that will help you reduce your tax bill.

This might include things like maximizing your deductions, taking advantage of tax credits, and considering different tax-saving strategies, such as tax-deferred investments or changing your business structure.

Tax planning is an ongoing process that should be reviewed and updated regularly, especially in light of changes in your personal or business situation, or changes in tax laws and regulations.

With us helping you with tax planning, you can ensure that you’re taking advantage of all available tax-saving opportunities and that you’re in compliance with all relevant tax laws.

Limiting Taxable Income

One of the key objectives of tax planning is to minimize taxable income. Taxable income is the amount of money you earn that is subject to income tax. By reducing taxable income, you can lower your tax bill and keep more of your money.

There are several ways to reduce taxable income, including maximizing contributions to tax-deferred retirement accounts, utilizing tax-free investment options, and deferring income to a later tax year.

Taking Advantage of Tax Credits

Tax credits are subtracted directly from the amount of taxes you owe, making them more valuable than deductions. Tax planning helps you identify tax credits you are eligible for and take advantage of them.

Some common tax credits include the earned income tax credit, the child tax credit, and education tax credits. By taking advantage of tax credits, you can significantly reduce your tax bill and keep more of your hard-earned money.

Increasing Number of Tax Deductions

Tax deductions are expenses that you can subtract from your taxable income to reduce your tax bill. The more deductions you claim, the lower your taxable income and the lower your tax bill.

Tax planning helps you identify all the deductions you are eligible for and make sure you are taking advantage of them. Some common tax deductions include mortgage interest, charitable contributions, medical expenses, and business expenses.

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Why Do Tax Planning?

There are several reasons why tax planning is important for both personal finances and businesses:

Minimize Tax Liability:

Tax planning helps you identify ways to reduce your taxable income and minimize your tax liability. By minimizing your tax bill, you can keep more of your hard-earned money.

Avoid Tax Penalties:

Tax planning helps you stay compliant with tax laws and regulations and avoid costly penalties for non-compliance.

Improve Cash Flow:

By reducing your tax bill, tax planning can improve your cash flow and give you more money to put toward your financial goals.

Better Financial Planning:

Tax planning is an important part of overall financial planning. By considering your tax situation in the context of your overall financial goals, you can make more informed decisions about your finances.

Business Advantages:

For businesses, tax planning is especially important. By minimizing your tax bill, you can improve your bottom line and have more money to invest in growth and expansion.

Tax planning can also help you stay compliant with tax laws and regulations, which can protect your business from costly penalties and legal issues.
If you want to stay on top of inflation and tax season, tax planning is one of the best ways you can do exactly that. Tax planning can help you maximize the amount of money you can keep and continue to invest in yourself and your business.

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Tax-Saving Strategies

Some examples of common questions we get asked are below. Many of the answers are, “it depends,” meaning there are tax planning opportunities, which can turn into savings if implemented the right way and at the right time.

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Frequently Asked Questions

Medical Expenses

Are medical expenses deductible? What about mileage? Are my insurance premiums deductible if they’re not through my employer?

Business Entities

Should I form an LLC? How does that affect my taxes?

Business Use of Home

When can you deduct it? Should you use the traditional method or the simplified method?

Charitable Donations

Is there a limit on non-cash donations? What records do I need?

Hiring Family Members

Should I hire my spouse or kids? What employee benefis can I give them (or myself)?

Employer Expenses

If I have job expenses that aren’t reimbursed, what and how much can I deduct?

Mileage

What miles are deductible? Should I use the standard mileage rate or my actual expenses? What’s the easiest way to track mileage?

Meals and Entertainment

What qualifies a meal as business? How should I document these expenses?

Self-employment Taxes

How much should I save for taxes? Can I reduce my taxes without spending money?

Real Estate

When should I do a like-kind exchange? When is my income taxes at capital gains rates vs. ordinary tax rates? How does depreciation work?

Travel Expenses

Can I deduct my trip if I conduct business? What expenses are deductible? Can I use per diem rates to deduct more than I even spent?

Retirement

Should I choose Roth or Traditional? If I’m self-employed, should I have a SEP IRA or a Solo 401(k), or something else?