Proactive Tax Planning.
We specialize in proactive tax planning—a strategy designed to help you minimize your tax liability not just at tax time, but all year round. By anticipating potential tax obligations and making informed decisions ahead of time, we empower both individuals and businesses to stay financially secure and compliant.
Proactive tax planning services:
Income & Expense Management:
Properly managing when and how income is recognized can have a significant impact on your tax liability. For high-income earners, deferring income into lower-tax years, such as retirement, can minimize immediate taxes. This approach is especially helpful for business owners or individuals nearing major life changes like retirement. Alternatively, if you're experiencing a low-income year, accelerating income or converting retirement funds to a Roth IRA may save you money in the long run.
Tax Efficient Retirement Planning:
For individuals and businesses planning for retirement, managing tax-deferred accounts such as 401(k)s and IRAs requires foresight. Proactive strategies, such as making withdrawals before Required Minimum Distributions (RMDs) kick in or converting traditional IRAs to Roth IRAs in low-tax years, can significantly reduce your future tax obligations. These approaches ensure you’re drawing income in a tax-efficient way during retirement, avoiding higher tax brackets and penalties.
Tax-Loss Harvesting:
For investors, offsetting capital gains with capital losses is an important tactic in minimizing taxes on investment income. This technique, called tax-loss harvesting, involves selling investments that have incurred a loss to counteract gains from profitable investments. Tax-loss harvesting should be done with care, keeping in mind the 30-day wash sale rule, which limits your ability to repurchase the same security immediately.
Charitable Contributions & Bunching:
If you frequently donate to charity, consider bunching your donations—giving multiple years’ worth of contributions in one calendar year. This strategy allows you to exceed the standard deduction threshold and itemize deductions, maximizing your tax savings in one year while providing greater flexibility in the following years.
Business Specific Tax Planning:
For business owners, proactive tax planning includes assessing potential deductions for equipment purchases, research and development, and other business expenses. Managing payroll, structuring employee benefits, and taking advantage of tax credits (such as for hiring veterans or energy-efficient equipment) can all play a part in reducing your tax burden. Additionally, businesses should evaluate how changes in tax laws, such as the potential sunset of the Tax Cuts and Jobs Act (TCJA), may impact future tax rates.
Work With an Experienced CPA!
We understand that proactive tax planning isn’t a one-size-fits-all solution. We tailor our strategies to meet the unique needs of every client, whether you're an individual, a family, or a small business. With years of expertise and a commitment to staying ahead of tax law changes, we ensure that you benefit from the latest strategies to reduce your tax liability while remaining compliant with IRS regulations.
Get Started Today!
The best time to plan for next year’s taxes is now. Let us help you create a personalized tax plan that reduces your financial stress and maximizes your savings. Schedule a consultation today to discuss how proactive tax planning can benefit you and your business.