With the 2018 changes in the tax law, there are many tax saving opportunities for your business and family. We define tax planning under three key steps :
- Identifying key areas or Diagnostic test: This step is the process of identifying areas/ sources of income that may require you to pay the highest amount of tax. This is an important step as it helps us identify key areas we need to focus on depending on your tax situation.
2. Planning phase: Based on the diagnostic test or estimated tax from step #, we then identify the most advantageous tax strategies to defer or reduce your tax liabilities. We plan your taxes based on the most beneficial tax- provisions, increasing/optimizing the business tax deductions along with identifying the tax credits to make the best use of all the applicable tax breaks available under the Internal revenue code 2018 tax laws.
3. Implementation phase: The tax planning strategies identifying in step 2 are only planned strategies. Execution is the key to any tax planning strategy. Therefore, at this stage, we suggest reviewing the information providing by us. Then, implement and reap the benefits of the tax breaks.
Goals for your tax planning
We truly believe, there is no one solution as every individual/business has unique life situations that may require custom tax planning. However, at a broad level, it is essential that you set up a few primary goals for your tax planning session and discuss with your tax professional. Few examples include :
- Control when you pay estimated taxes. This includes rebalancing your business income/losses across the year based on your business/economic conditions.
- Lower your taxable income
- Take advantage of the tax credits available to you.
- Reduce the effective rate at which you are taxed.
- Make the best use of tax saving investments eg: Roth and traditional IRA, 401k (k), Health savings account, Dependent care account.
Having clear & well-defined goals with your tax professional is the best way to plan your tax planning session. For more information, you can contact us via this web link :