Our income tax planning analysis enables us to use varying assumptions to obtain the most beneficial tax results. We will produce supporting schedules of income, deductions, and available credits and provide you with an analysis of various planning scenarios. The proposed sale of a business is a great example of the critical nature of tax planning. It is of utmost importance for the seller to know the potential after-tax results in order to determine a selling price.
People generally assume that tax planning only applies during years of high income or to businesses when they have a very positive year. However, both individuals and businesses can win from the proactive practice of tax planning. It can help either increase the successes of an already positive year, or addbenefits to a year where things took a down-turn.
There are a number of different strategies and approaches available, including reviewing pre-developed year-end tax checklists, performing a marginal tax rate analysis to ensure that you won’t be pushed into a higher tax bracket unnecessarily, deferring income and more. The following items are a few of the options we need to review before year-end:
- Deferring income
- For spouses, calculating both “married filing jointly” and “married filing separately” to determine any advantages
- Recognizing when to take capital gains and losses
- Considering any children or elderly parents you may be able to claim
- Contributing to retirement plans
- Using investment options for charitable giving instead of cash
- Large equipment purchases
- Real estate purchases / sales
Contact us for more information about our tax planning services.