Effective tax planning is a long-term, year-round process, and cannot be executed in the waning days of December. Tax planning should ensure “tax efficiency,” when handling all elements of a plan.
Planning ahead can go a long way toward keeping your taxes as manageable as possible, especially for those who have reached their retirement years. It’s wise to get a good grasp on the income tax laws and options available to you.
We work directly with your CPA, tax preparer, or estate planner to help deploy tax strategies.
Defer your income
By deferring income to a later year, you may be able to minimize your current income tax liability and invest the money that you’d otherwise use to pay income taxes.
Shift income to family members
You may also be able to minimize your federal income taxes by shifting income to family members in a lower tax bracket.
Part of minimizing federal income tax is about taking advantage of deductions, and timing them in the most beneficial manner.
Investment tax planning
You can also minimize tax by making tax-conscious investment choices. Potential strategies can include the use of tax-exempt securities and intentionally timing the sale of capital assets for maximum tax benefit.