Tax Analysis and Strategy
Tax planning is not avoidance of tax payments nor is it done with intent to defraud or evade tax liability. Tax planning is carried out within the framework of tax law.
The “pay yourself first” phrase also applies to tax planning. Ignoring the after-tax return on investments or the after-tax cash flow on wages, for example, means that you often pay the US Treasury first and yourself last. Just as regular, consistent savings contributions go a long way toward building a long-term nest egg, regular, consistent tax planning helps ensure that you keep more of that nest egg.
Proper tax planning involves deploying analysis and sound strategy to minimize tax liability through the use of all available allowances, deductions, exclusions, credits, and exemptions and reducing or deferring taxable income. Tax strategy includes careful attention to the timing of recognizing income and planning purchases and other expenditures with the tax consequences in mind.
An experienced tax professional, like Denise Robinett, not only understands tax strategy as a way to maximize income, but she believes that it is essential that tax planning not trump overall financial planning and strategy. “While tax planning is an important part of financial planning, it shouldn’t be allowed to become counter-productive by taking the spotlight from business and investment growth,” she said, in a business tax planning meeting. “However, many taxpayers make the mistake of over-looking tax planning as a way to deploy resources better. Whether the taxpayer is a business or a family, resources are limited and should be put to their best use.”
By freeing up funds previously used for taxes, taxpayers can then put that money to its best use. Tax savings can be used to fund retirement, pay college tuition, purchase equipment for expansion, or even take a dream vacation
Customized approach to planning
Although no one can predict the future or fully know what tax law Congress will enact from year to year, making an assessment with the best information available is vital to planning for success.
There is no “one-size-fits-all” approach to tax planning as each business or individuals’ financial and tax situation is different.
At ETS, we offer comprehensive tax planning services. We believe that income tax planning is an essential part of financial planning and that without it, taxpayers can have difficulty saving for the future. Evaluating your tax position each year to determine the impact of increased tax rates and planning for higher tax burdens should be accomplished with the help of a trusted advisor. Commitment to the tax planning process will help you navigate through an ever-changing tax landscape and make it possible to “pay yourself first.”
Here are some examples of tax planning topics we regularly discuss with our clients:
Meeting Current Tax Liability
- Quarterly Estimated Tax Payments
- Adjusting Withholding to Avoid Penalties
- State Nexus and Filing
Timing, Deferrals and Exclusions
- Recognition/Deferral of Bonuses and Other Supplemental Wages
- Roll-overs of 401(k) and IRA plans
- NOL Carryforwards and Carrybacks
- Timing of Stock Sales
- Exercising Stock Options
- Passive Income and Losses
- Installment Sales
- The Kiddie Tax
- Alternative Minimum Tax
- Affordable Care Act
- IRA Conversions and Recharacterizations
- Charitable Contributions
- College Tuition Planning
- Gifting Assets
- Wash Sale Rules
- Capital Gains and Tax Brackets
- Investment Property Sales
- Investment Interest Expense
- Qualified Dividends
- Net Investment Income Tax
- Suspended Losses
- Capital Loss Carryforwards
- Grouping Elections
- Business Retirement Plans
- S Corp and Partnership Basis
New Business Consulting
Essential Tax Advice for Entrepreneurs
Tax Planning is essential when you must choose the entity classification. This decision dictates what organizational formalities must be followed, how income is reported and taxes are paid, and numerous other issues.
There are several choices among entity types, and each has its advantages and disadvantages from the ownership, income, liability, and tax perspectives. Make sure that you consult with us before making a final decision.
The form/entity that you choose isn’t permanent. If the circumstances of your business change, you can change the form of your business. For example, you may start your business as a sole proprietorship, but as your business grows, you may become a Limited Liability Company or take on a partner and become a partnership. Later, you may choose to incorporate to protect business creditors from pursuing your personal assets or to attract investors. However, some changes have serious and costly tax consequences so discussing your plans with us beforehand is a sound strategy.
At ETS, we will help you make informed, intelligent tax decisions.
13168 Piedmont Vista Drive
Haymarket, VA 20169
- Tax Services for Individuals and Businesses in Haymarket, Gainesville, Fairfax, Bristow and surrounding Metro areas.September 28, 2016 - 10:21 am
Northern Virginia Tax accountant serving Northern Virginia Metro and the entire United States. Essential Tax Services is a full-service tax accounting firm focused on providing quality tax preparation, tax planning, and accounting services to Haymarket, Gainesville, Bristow, Manassas, Fairfax Virginia and surrounding communities. For over 10 years, Essential Tax Services has provided quality accounting services with a strong dedication to client satisfaction. […]
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