Strategic Tax Planning Services

Start your tax planning during the taxable year to maximize tax savings.

At Wendroff & Associates, CPA we look at your company’s goals, and help you create long and short-term strategies to capitalize on the ever-evolving tax code to grow your business efficiently and successfully. By utilizing the most effective technology available and our network of tax law insiders, we stay on top of the latest tax law changes to give you the best strategic advice. It’s just one more thing that makes our tax services unique.

Why Start Tax Planning Early?

1) Prevent Surprises

We help you estimate your tax liability in advance to help prevent surprises at tax time. This also helps you manage cash flow to understand how much you may need to pay in quarterly estimated taxes, or when you file your return.

2) Reduce Tax Liability

By utilizing various tax planning strategies, it’s possible for us to significantly reduce your annual tax liability, especially while planning within the taxable year.

Our Tax Planning Process

Gather Information

Tax planning begins with you providing information ahead of our virtual meeting. We then analyze your data and prepare suggestions and strategies to optimize your taxes.

Virtual Meeting

During the virtual meeting, we will review your current financial situation and discuss potential changes that can reduce your tax liability. This assessment helps you stay on track with your tax obligations.

Comprehensive Approach

Our comprehensive approach takes into account changes in tax laws and their potential impact on your unique situation, as well as identifying tax deductions based on your personal circumstances, life changes, and financial goals.

Tax Planning to Reduce Tax Liability

There are numerous circumstances that can have an impact on your tax liability, both as a business entity and an individual. We cover these and more during your tax planning meeting:

Entity Selection: We will help assess the tax implications of different business entity types (such as sole proprietorship, partnership, LLC, S corporation, C corporation) to determine the most tax-efficient structure for your business. We’ll consider factors such as liability protection, ease of administration, and tax benefits.

State Residence: It’s important to understand the tax implications of residing in different states, including state income tax rates, residency rules, and potential tax credits or deductions available in your state of residence.

Life Changes: Major life events such as marriage, divorce, birth of a child, or death of a family member can have tax implications. We’ll consider how these changes may affect your filing status, deductions, credits, and other tax-related matters.

Charitable Giving: We’ll look at ways to maximize tax benefits associated with your charitable donations utilizing our knowledge of the tax rules related to deductions for charitable contributions, donating appreciated assets, and establishing charitable trusts or foundations.

Business Asset Purchases: We assist with strategically planning business asset acquisitions to take advantage of tax benefits, such as bonus depreciation, Section 179 expensing, or research and development tax credits.

Personal Asset Purchases: Our team will help you review the tax implications of major personal asset purchases, such as a home or vehicle, and evaluate available deductions or credits.

Retirement Planning: We’ll research opportunities for developing tax-efficient retirement plans, including contributions to retirement accounts, maximizing retirement plan deductions, and exploring retirement savings options like simplified employee pension (SEP),  individual retirement accounts (IRAs) or 401(k) plans.

Sale of Rental/Personal Property: It’s important to plan for tax consequences when selling rental properties or personal assets and consider capital gains tax, depreciation recapture, and potential tax deferral strategies like a 1031 exchange.

Tax Loss Harvesting: We’ll look for ways to strategically offset capital gains by selling investments such as stocks, mutual funds, and cryptocurrency which have experienced a loss, which can help reduce your overall tax liability.

Health Savings Accounts (HSAs):  If eligible, you may be able to maximize your contributions to HSAs, as they offer triple tax benefits – contributions are tax-deductible, earnings grow tax-free, and withdrawals are tax-free when used for qualified medical expenses.

RSUs (Restricted Stock Units) and ESPP (Employee Stock Purchase Plan): These common equity compensation programs require careful tax planning. RSUs have tax implications when they vest, including potential tax withholding by your employer. Holding RSU shares beyond vesting may result in capital gains tax upon sale. ESPPs offer discounted stock purchases, and understanding whether the plan is qualified or non-qualified is crucial for tax treatment. Meeting holding period requirements for ESPP shares can lead to more favorable tax rates, while disqualifying dispositions may trigger ordinary income tax. Together, we will navigate the complexities of RSUs and ESPPs and optimize your tax strategies.

Capital Gain Strategies: Implementing capital gains strategies can help manage your tax liability. We’ll consider tax loss harvesting to offset gains with losses, holding investments long-term for lower tax rates, bunching capital gains in specific years, utilizing tax-advantaged strategies for deferral, taking advantage of the step-up in basis at death, exploring QSBS tax exclusions, and donating appreciated assets to charities to avoid capital gains tax while receiving a tax deduction.

Education Savings: We’ll explore tax-advantaged education savings options, such as 529 plans or Coverdell Education Savings Accounts, to save for future education expenses while potentially benefiting from tax deductions or tax-free growth.

Home Office Deductions: If you operate a business from your home, we’ll review the criteria for claiming home office deductions, which can allow you to deduct a portion of your home-related expenses.

Qualified Business Income Deduction: For eligible businesses, you may be able to take advantage of the Qualified Business Income (QBI) deduction, which allows certain self-employed individuals and owners of pass-through entities to deduct up to 20% of qualified business income.

Estate and Gift Tax Planning: We’ll help you plan ahead for estate and gift taxes by utilizing estate planning strategies, such as gifting assets, establishing trusts, or utilizing exemptions and deductions available under estate tax laws.

Tax-Efficient Investment Strategies: Tax-efficient investment strategies, such as holding investments for the long term to benefit from lower capital gains tax rates or utilizing tax-efficient investment vehicles like index funds or tax-managed funds, should be considered as part of your annual tax planning efforts.

Estimated Tax Payments: Our team will help you stay on top of your estimated tax payments to avoid underpayment penalties and ensure you meet your tax obligations throughout the year.

Federal and State Tax Credits: We’ll research and leverage available tax credits, such as the R&D credit, VA land preservation, electric vehicle credit, etc., to help reduce your tax liability.

Proper tax planning gives you the power and knowledge to grow your wealth with confidence, while making your annual tax preparation efficient and smooth. Don’t wait until next year to discover tax-saving opportunities you missed. Contact us today to get started!
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