No one wants to pay more taxes than they’re legally required to. Suffice to say, if you want to be proactive about being tax-efficient, you’ll want to speak with an expert about tax planning.
Simply stated, tax planning involves numerous strategies, such as making requirement account contributions, planning the timing of certain purchases, and making charitable contributions, among others, in a way that helps minimize your tax liability.
For example, if you make $100,000 per year and you contribute $26,000 to your 402(k) account, this will reduce your adjusted gross income (AGI) from $100,000 to $74,000, which in turn, will reduce what you owe in taxes.
If you own a business, tax planning may involve timing certain purchases, such as high-cost office equipment and vehicles, to offset unexpected income. Numerous businesses across the US used that strategy to help reduce their 2021 tax liability—especially those in industries that experienced a financial boom last year. Instead of making large purchases in January, they made their purchases before Dec. 31. Since the purchases were made in 2021, the investments they made in their businesses will qualify as write-offs when they file their 2021 taxes.
Benefits of meeting with a CPA
Tax law (and the tax code) is extremely complicated, and the tax code changes constantly. Consequently, if you want to be proactive about limiting your personal or business tax liability, it’s best to sit down with an expert.
The licensed CPAs at Hughes, Snell & Co., PA have years of experience in helping people just like you develop and modify their tax plans. They also understand that every client has unique needs, and that their tax plans might need to shift from year to year.
Regardless as to whether you think your tax situation is simple or difficult, we can help, because everyone can benefit from tax planning. For more information on various tax planning strategies, when you should start planning for your 2022 taxes, or to schedule a free-no cost consultation, call our office today to speak with an expert.
Our office is open Monday through Friday from 8:00am through 5:30pm, and we offer in-person and virtual appointments. Additionally, if you’d like to pre-schedule a time for one of our licensed CPAs to prepare your 2021 tax return, we can help with that as well. What are you waiting for? Call our office now at 239-939-2233 to get started.