By - February 6, 2023
Categories: General
What if you could make next year’s taxes less painful? What if next year, your taxes were ready to go and you knew you weren’t overpaying?
You can. It just requires a little extra planning now. One of the most underutilized tax tools small business owners leave on the table is tax planning. But what does tax planning cover? Here are the three areas that every tax planning expert will discuss with you.
Your Income
What can a tax planning expert do when it comes to your income? As it turns out, quite a lot. Everything about your income counts towards how you will be taxed. The amount of income you receive, the manner in which you pay yourself, the percentage of salary to business income, and when you pay yourself all factor into how much you will end up paying in taxes.
A tax advisor can help you optimize your income so that you are receiving the best income possible, while keeping your tax bill as low as possible.
Your Purchases and Expenditures
Did you know that your purchases affect your taxes? Your tax advisor knows not only what purchases will impact your taxes but also how to plan your purchases so they will help you or at least impact your taxes in a less negative way.
Tax advisors aren’t miracle workers, but their work can have measurable results.
Your Gains and Losses
Tax planning can get complicated at this stage. This stage is primarily for anyone who has investments. The stock market is volatile and businessmen know that they will experience losses as well as gains.
A seasoned tax advisor can help strategize so that their gains and losses impact their taxes in a more positive way.
The Big Picture
A tax advisor’s goal in tax planning is simple: make the tax bill as low as possible. He looks at how all the elements of your finances work together to affect your taxes and then optimizes the whole structure to work for you.
In a system like the modern US tax structure, the government is not on your side. You need someone on your side to take advantage of every legal method to save you money and protect your wealth and growth.
If you’d like to discuss more about what that could look like, I would be happy to speak with you!
