With the fall tax filing deadlines behind us, we like to begin reaching out to our clients to offer assistance with year-end tax planning. Tax planning for our individual clients encompasses a broad range of issues depending on the complexity of a client’s financial picture. We not only look at the current tax year, we also evaluate how actions taken now or prior to year-end will improve their tax situation in both the short and long-term. Planning allows us to identify specific areas where we can help our clients the most and provide true value-added services. Some of the more common areas we like to discuss with our clients include:
1. Addressing any significant (or anticipated) changes in their income, family status, or residency.
2. Discussing the current political climate and the impact potential tax law changes, particularly in an
3. Avoidance of penalties. Has the client paid in enough tax through either withholding or quarterly payments over the course of the year to avoid underpayment penalties? And how can we help mitigate that risk?
4. Capital gain recognition or harvesting of unrealized losses. We work with the client and their broker or financial advisor to obtain all relevant year-to-date information in their accounts. From this information we can help formulate tax saving strategies for the client.
5. Acceleration/deferral of income and deductions. With many of our clients we see shifts in their tax brackets from year to year, so the timing of income and deductions can yield significant tax savings.
6. Pre-payment of 4th quarter state income taxes, depending on the individual’s exposure to Alternative Minimum Tax.
Remember, good planning is the key to a successful year and we’re here to help you along the way.
Contact us at email@example.com to discuss your situation.