It’s no stretch to suggest that most of us are unhappy when it comes to paying taxes. We know this is certainly true of our clients who are working hard to accumulate wealth. You may feel you’re paying too much or that you simply don’t understand the process well enough.
Managing your taxes absolutely requires planning for the year ahead (or even two or three years), so you have plenty of time to implement tax-reducing strategies. All of our services take into consideration the tax implications surrounding the specific financial planning recommendations we make. Specific tax planning will include a thorough review of your tax situation for planning ideas to reduce and defer taxes, provide an explanation of current changes in the tax law that affect you, and review your investments from a tax perspective. This analysis should be coordinated with estimated income tax requirements by your CPA.
5 Fundamental Strategies for Tax Reduction:
- Timing income and expenses, so that you pay the lowest total amount over several years
- Converting taxable income to non-taxable income
- Deferring taxes to a subsequent year
- Shifting taxable income to someone in a lower tax bracket
- Deducting expenses
Minimize Tax Burden & Maximize After-tax Returns
- Tax Loss Harvesting
- Federal Tax-Exempt Bonds
- State Tax-Exempt Bonds
- Deduction planning
- Year-end planning strategies
- Kiddie Tax Planning
- Tax Efficient Gifting Strategies
- Tax Efficient Investment Strategies
- Reducing taxable income through income deferral or shifting.
Tax planning considers the tax implications of individual, investment, or business decisions, usually with the goal of minimizing tax liability. While decisions are rarely made solely on their tax impact, you should have a working knowledge of the income or estate tax issues and costs involved.
If you give away wealth, during life or at death, you may incur federal taxes—and possibly additional state taxes. These taxes include gift, estate, income, and inheritance taxes. You can help protect the assets you transfer from excessive depletion by understanding these taxes and the various strategies you can use to minimize them.
Tax Smart Ideas for Managing your Portfolio
Managing your taxes will help you work towards your financial goals. The tax savings you realize by planning ahead will work in tandem with the other financial planning steps you take to secure your future. As your goals change and your personal financial situation changes, we will help you adjust your tax planning, too.
Strategies to maximize after-tax cash flow by conducting an in-depth analysis of your current income tax situation are key to enhancing financial efficiency. The tax impact of various financial strategies, including your investment asset allocation, income generation, tax classification of assets, trust and business entities, and stock option exercise programs, are considered and evaluated. For business owners, the impact of corporate transactions is quantified, and strategies are designed to minimize total income tax liability and maximize retained wealth.
We attempt to mitigate the tax burden to our clients through proper tax planning. We advise on how to structure your investment portfolio and financial plan to minimize your tax burden. It can save the well-informed taxpayer significant amounts of money. We know that our clients have more important things to worry about in their lives.
A strategy built to maximize your benefit and minimize your burden. Effective tax strategies don’t just happen at tax time. They require year-round attention. And maximizing your benefit doesn’t always mean getting a maximum return at the end of the year. The goal needs to be a balanced portfolio with investments that help you to minimize your tax burden and maximize your after-tax returns.