Tax Planning

TAX PLANNING

Interested in paying less taxes and accumulate wealth? It takes much more than just wishful thinking. Having a tax plan is the first step towards increasing your after-tax income. This shouldn’t come as a surprise as, like everything else, proper planning works wonders in increasing your after-tax income. Planning is the key to successfully and legally reducing your tax liability. We go beyond tax compliance and proactively recommend tax saving strategies to maximize your after-tax income. We make it a priority to enhance our mastery of the current tax law, complex tax code, and new tax regulations by attending frequent tax seminars.

While it sounds easy, putting it together requires intelligent and professional work.

A SmartCPA tax professional would have to gather information about your financial situation, then analyze and apply the relevant tax laws and regulations to create a suitable tax plan to meet your business and personal financial goals.  

Tax laws keep changing constantly depending on who is sitting in office and what party is controlling the house vote. As such, any professional must be up to date on all tax changes and updates. In recent years we have witnessed several policy changes and understand how this affects the existing tax laws. Therefore, before having a tax plan, a thorough understanding of the current tax laws is crucial.

This explains why we are always one step ahead by ensuring our tax professionals participate in seminars and continuing education in tax regulations which are applicable to different business industries.  While every individual and business owner is looking for ways to increase their after-tax income, only a few successfully manage to help clients save on their after tax income.

One of the things that makes SmartCPA stand out from the rest is that we offer not only end of year tax evaluation and planning, but also an ongoing year round tax monitoring of your business situation.

We recommend Tax Saving Strategies that help you…

  • Grow and preserve assets by keeping Uncle Sam out of your pockets.
  • Defer income so you can keep your money now and pay less taxes later.
  • Reduce taxes on your income so you keep more of what you make.
  • Reduce taxes on your estate so your family keeps more of what you’ve made.
  • Reduce taxes on your gifts so you can give more.
  • Reduce taxes on your investments so you can grow your wealth faster.
  • Reduce taxes on your retirement distributions so you can retire in style.

Here’s just a few of the Tax Saving Strategies we use…

  • Splitting income among several family members or legal entities in order to get more of the income taxed in lower bracket.
  • Shifting income or expenses from one year to another in order to have them fall where it will be taxed at a lower rate.
  • Deferring tax liabilities through certain investment choices such as pension plans, contributions and other similar plans.
  • Using certain investments to produce income that is tax exempt from either federal or state or both taxing entities.
  • Finding tax deductions by structuring your money to pay for things you enjoy, such as a vacation home.

Remember, we work for you not for the IRS.
Many of our clients save many times the fee in reduced tax liability through careful planning and legitimate tax strategies.

At SmartCPA, we are dedicated to offering services and recommending tax benefits once the situation of your enterprise has been studied diligently.  

While a tax planning expert can help guide you on the path to creating a tax-saving strategy, your actions could be harmful to whatever progress is made.

This reinforces the need to be well-informed on best tax practices and possible changes to the existing tax laws.

You might want to follow tax-related news since this could affect your income tax returns and your decisions going forward.

While SmartCPA would eagerly take up an advisory role, you still have the final say on the next line of action. However, we will always ensure a feasible tax-saving strategy is put in place by our efficient tax planning professionals.

If you run a small business with a chunk of the administrative activities done in your place of residence, you might want to consider taking advantage of the home office deduction. While it is a remarkable approach to save on your taxes, there are certain clauses the IRS has attached before you qualify for such a deduction. One of the main clauses is that the location has to be the focal point of all your business transaction. For instance, if you are involved in baking pastries, the bulk of your baking activities should be done in that location. Also, the space you use for your business activities must not be shared with anything else. So you can’t be doing your personal laundry or any other domestic activity in that same space. While it is a rigid regulation, it helps those with a work from home practice save money on their taxes.    

One of the benefits of registering a business as a Limited Liability Company is that it offers your business the opportunity of exploiting the tax election form which could help you save on your taxes. By electing the S Corporation form of entity, you decide how much is your salary and this is taxed accordingly. This is completely legal without any future implications. Many small businesses are unaware of this opportunity which these types of entities provide.

At SmartCPA, we are keen on ensuring we find hidden tax saving gems scattered around the tax code, laws and regulations. Tax incentives will only come to those who are ready. And one of the most effective ways to show readiness is having your books organized at an early stage. You don’t have to wait till when it’s time to make an income tax return before organizing your records. A squeaky clean book increases the chances of sniffing out tax saving options you might have otherwise missed. SmartCPA is dedicated to ensuring your books are organized on a regular basis, so every tax-saving opportunity is fully utilized.

SmartCPA can help you set up a tax plan which is unique to your situation, schedule your free consultation today.