Tax Planning
Identify tax efficiencies with smarter timing and strategy.
Taxes affect nearly every financial decision, but that doesn’t mean they have to run the show.
This part of planning helps you understand where taxes show up, how to plan around them, and what can be done to avoid unnecessary surprises. Whether it’s coordinating with your accountant, timing distributions, or looking at how different choices could impact your return, the goal is to keep more of what you’ve worked for.
You don’t need to know every rule. You just need a plan that keeps taxes in mind without letting them lead the way.
A major goal of tax planning is minimizing federal income tax liability. This can be achieved by:
Income and Investment Taxes
Plan around what you earn and how you grow it, so you’re not surprised at filing time.
Tax Timing and Strategy
Think ahead about when and how to use your money in ways that reduce unnecessary costs.
Collaboration With Your CPA
Keep your financial and tax planning connected so nothing falls through the cracks.
Stay ahead without the stress.
Tax strategy should lighten the load, not add to it. With the right approach, decisions feel more connected and less reactive.
This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Investors should consult with a tax or legal professional regarding their individual situations.
Tax planning considers the tax implications of individual, investment, or business decisions, usually with the goal of minimizing tax liability. Although 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.
A major goal of tax planning is minimizing federal income tax liability. This can be achieved by:
- Reducing taxable income through income deferral or shifting
- Deduction planning
- Investment tax planning
- Year-end planning strategies
Investment tax planning involves evaluating how to best position assets in order to minimize the amount of taxes you have to pay on an ongoing basis. This requires year-round planning, and it begins with an in-depth understanding of the tax implications of various investments and investment strategies, including:
- The treatment of wash sales
- Tax-exempt investments
- Gains and losses
- 1031 exchanges
- Qualified dividends
- Option strategies
- Tax-deferred investing
- Passive income and losses
- Mutual fund taxation
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 issues are never far from the mind of the business owner, and it’s likely that many of the decisions you make will be tax based. It starts with the formation of your business and continues through the sale. Your choice of business entity, how you pay out profits to the owners, and your accounting decisions will all have an effect on your tax liability.
Some events in life—retirement, for example—come with tax considerations. Life event planning focuses on the impact of significant events on your life, as well as on the stages of your overall investment plan.
This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Investors should consult with a tax or legal professional regarding their individual situations.