Personal Tax Planning
What tax bracket you will be in should determine the most advantageous year to shift income and expenses. If you are collecting social security, try to minimize income to prevent 85% of your social security being taxable. If you will be applying for college financial aid, know what year income needs to be managed. People on Medicare will have to pay a surtax if they make moves that increase their income over a certain level. You may need to manage income to maximize the earned income tax credit college tax credits, and medical deductions. This is just a sampling of the reasons to perform personal tax planning.
Business Tax Planning
When a business purchases an asset, they need to decide if they should expense it or depreciate it. If the answer is to depreciate, then you must decide if bonus depreciation or section 179 is better. There is a new 20% Qualified Business Income Deduction. Decisions needed for this deduction include entity choice, wages, purchasing assets, self-employment tax and many others. Businesses may have losses which could create net operating losses that need to be managed. The choice of entity due to different tax structures along with future projections play important roles in business tax planning.
Effective tax preparation and planning can help you minimize your current and future tax liability. We can help you proactively manage both your personal and business tax issues, including understanding how upcoming business opportunities impact your tax status and vice versa. Not all tax planning opportunities are readily apparent. By having us on your team, you are more likely to benefit from those opportunities. We understand how the latest federal, state and local tax legislation affect you and your business and we are constantly identifying new ways to reduce tax related liabilities.
Interested in Tax Planning?
Our experts at Marion & Associates LLC are standing by.