Every financial decision you make has tax implications. That is why tax planning is an integral part of our tax service process. The value of the dollar depends on the person receiving it: the same dollar could be worth $2 dollars or a dime. Let’s say you go on a vacation to Korea. Since you are going on your own initiative, you cannot deduct anything from the money you spend. Yet if you had gotten an e-mail requesting a job interview or calling you to a business related meeting in Korea before you left, your travel expenses would have been deductible as a job search or a business meeting related cost. Knowing this possible tax deduction opportunity afterward would not have been of use.
Therefore, I believe that planning ahead of time is the best strategy to reducing your tax liability successfully and legally. With this in mind, when we do prepare tax returns with our client, we also discuss our client’s future plans, and we map out the very best tax efficient action plan under the taxpayer’s upcoming situation.
Again, we let our business and individual clients pay the lowest amount of taxes allowable by law because we continually look for ways to minimize your taxes throughout the year, not just at the end of the year.
Here are just a few of the Tax Saving Strategies we use…
- Maximizing employee fringe benefit inside the business, including but not limited to tax deferred pension plan, flexible spending account, education tuition support program, company reimbursement policy, etc.
- For employees, diverting expenses to job related un-reimbursed business expenses.
- For employees born in a foreign country, maximizing tax treaty benefits.
- Splitting income among several family members or legal entities in order to get more of the income taxed in a 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.