Tax Planning

Our firm offers tax planning as part of our comprehensive financial planning service.  Tax Planning is an element of Financial Planning that is often overlooked. Tax planning attempts to assess future tax impacts and take steps today to minimize lifetime tax costs.

Wealth Management  =  Financial Planning  +  Investment Management

Tax Compliance vs Tax Planning

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Tax Planning

Tax planning, on the other hand, is making decisions today that may result in higher taxes today but benefit you more over the long term.  It’s an attempt to ascertain where tax benefits are now and where they will be, and then determining the best strategies to benefit taxpayers over their lifetime.

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Tax Compliance

Tax Compliance is typically an exercise taxpayers perform on an annual basis.  With tax compliance, the effort is to accurately report that year’s taxable events with an eye toward identifying every possible deduction and tax benefit.

Who Benefits From Tax Planning?

Everyone who pays taxes may potentially benefit from tax planning.  Granted, some returns are very straightforward and may provide little opportunity.  But even then, there may be future opportunities based on changing tax laws and changing circumstances for taxpayers.  For example, after 2025, Standard Deductions are scheduled to be reduced and caps on deductions for income and property taxes are scheduled to expire.  Whereas you may now benefit from the Standard Deduction, circumstances may change to benefit itemized deductions, but only to the extent that Alternative Minimum Tax doesn’t interfere with those benefits.  We can review your tax return and at least determine if your taxes are being optimized.  On the other hand, a review of your taxes could generate significant tax savings opportunities.

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Sample Considerations

  • C Corporations

    If you own a business, would you be best served by filing taxes as an S Corporation?  What are the requirements for reasonable compensation?  What are the benefits for managing wages versus future participation in Social Security upon retirement?


  • Retirement Savings Strategies

    If you have a business and would like to save for retirement, would you be best served by a SEP IRA, a SIMPLE IRA, a 401k Plan, a New Comparability Plan, or a Defined Benefit plan?  Whether or not you have employees can have a big impact on your decision.  If you do have employees, then how much you’re willing to contribute to their retirement plans as well as your own can be a factor in determining which type of savings vehicle to use.


  • ROTH IRAs

    ROTH IRAs allow you to grow your investments tax free and not pay tax on the growth, as long as certain requirements are met.  However, the ROTH IRA contribution and IRA conversion rules have changed a few times, creating opportunities for strategies referred to as Back Door ROTHS and Mega Back Door ROTHS.  New rules limiting participation in ROTH IRAs are being considered by various tax policy groups.  What opportunities are available for you now?  What strategies are available for conversion in retirement if you are in a lower tax bracket?  Should you consider accelerating ROTH conversions if the markets are down or if tax rates are scheduled to increase?


  • Cost Segregation Studies

    Certain businesses that purchase buildings have an opportunity to segregate real property and personal property with Cost Segregation studies, thereby accelerating deprecation.  This opportunity can provide substantial benefits, especially if taxes saved today can be used for business growth strategies.  However, if your business activities are reported on your personal return, and if doing a Cost Segregation Study results in lowering your taxable income to zero, then you may have only benefited this year from tax rates at 10%, 12% and 22% for some of those deductions.  If not accelerating that depreciation would mean depreciation deductions in future years at a 37% or higher tax rate, then was that Cost Segregation Study the best approach for your circumstances?  Plus, how would that approach affect future like kind exchange opportunities?


  • Charitable Giving

    How can charitable giving strategies lower your lifetime tax burden?


  • Realizing Capital Gains

    Are there opportunities for you to manage reporting and paying taxes on capital gains?  Are you in a concentrated stock position with significant capital gains?  Are there opportunities for you to diversify those holdings in a tax efficient manner?


Get Started Today

Would you like to have models and projections of significant tax events, such as selling a business or exercising stock options.  Tax rules are complicated and are constantly changed by Congress, the IRS, and court rulings.  Taking advantage of opportunities while they last can have a significant impact on your lifetime tax burden.  We can work with you to evaluate some of these opportunities.

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