Tax Planning

 

Many clients do not realize how tax planning at the beginning of the tax year can have a significant impact on their end-of-year tax return and their tax liability for the year. With the many changes from the Tax Cut and Jobs Act law of 2017, tax planning has become critical, especially for pass-through entities.

 

Also, the choice of which type of entity will be most beneficial going forward from the 2018 tax year changed dramatically from what would have been the best choice in 2017.

 

Entrepreneurs with a new business must decide the type of entity they are going to choose (i.e. sole proprietor, corporation or pass-through entities such as LLCs’ and Subchapter S Corporation). Then, based on the entity type chosen, what are the decisions that must be carried out to take advantage of tax opportunities under the new tax law.

 

Also, is it time, based on your income, to setup a Health Savings Account? Are you going to take advantage of SIMPLE, Sep-IRA, or SIMPLE 401K plans offered by your employer? Is it time to think about setting aside money for college from your children under the Section 529 tax-advantaged saving plan?

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