TAX PLANNING

There are different levels of tax planning. For individuals who are flying under the radar of higher tax brackets and tax regimes, their planning is simpler. Typically, their decisions are based on deciding as to how they want to save their dollars, whether it be in a simple brokerage account, a pre-tax (tax deferred until distribution) account or after-tax (tax deferral of income for life).

Then as their savings and retirement grow the decisions are based on the most beneficial plan of tax efficient withdrawal strategies. Individuals who find themselves in higher tax brackets will decide type of account to hold their money and efficient distribution but may want to consider additional tax strategies.

People are different and therefore their incomes, assets and debts are different. When we sit down with someone, we will look at their overall situation and determine their unique set of circumstances to provide relevant advice. Roth conversion analysis can be very powerful and may be relevant for taxpayers. Tax Projections / Marginal & Effective Rate Planning can be used as a strategy.

For business tax planning the business owner must decide the proper tax entity, taking advantage of all possible tax deductions, best cost recovery method (depreciation), use of a retirement plan or not, use of accountable reimbursement plans to name the most obvious. As with people, businesses are unique unto themselves and may require unique tax planning.

To minimize your tax expenses, schedule an appointment with Michael today.