How Tax Planning Can Help You Save Money
Minimizing your tax liability should be a priority for you throughout the year. While many of us only realize this shortly before tax time arrives, tax planning can help you to plan to reduce your tax by making smart decisions throughout the year. Whether you own a business or simply earn enough that your taxes are considerable, tax planning can help you to reduce what you owe so you keep more of your hard-earned money.
The tax experts at Camputaro & Associates can help you to plan your savings, investments, and income to significantly reduce what you owe at tax time.
What is Tax Planning
Tax planning is the process of planning your financial decisions and purchases so that they will best reduce your tax. A CPA can help you to create a strategy using current tax law, tax code, and new tax regulations, which we can leverage to your advantage. By creating proactive tax saving strategies to help you reduce your after-tax income, we can greatly reduce your overall liability.
Ideally, we can work with you throughout the year, to help you plan your tax decisions, and make the best investments for this year and the next.
For example, we can use any of the following strategies to help reduce your tax:
Deferring Tax Liability – Investment choices such as pension plans, contributions, etc., can greatly reduce your tax liability. We can advise you throughout the year to ensure that you get the maximum benefit from every contribution.
Reducing Retirement Savings Tax – Cash and bonds are taxed at ordinary rates, which can hurt your retirement investments. We can advise you on restructuring your retirement accounts, to shield high-tax items like cash, bonds, and mutual funds, while minimizing the risk from stocks.
Investment Choices – Some investment choices will offer lower tax or no tax, which can be very beneficial. We can advise you on making the right choices to reduce investment tax as much as-is possible.
Deferring Income – Shifting income can be used to lower your taxes for one year, or to shift it to the next year when your income tax will be lower. Similarly, if you know that you are moving into a higher tax bracket, you can choose to report income earned in the first week of January in the previous year. We can help you to make the best choices to lower your total tax, rather than simply lowering the tax for this period.
Splitting Income – In some cases, it may be possible to split your income between several family members or legal entities to lower your total tax bracket. While this isn't always possible, it often is, and can greatly reduce the amount of tax you pay.
Finding Tax Deductions – Many people qualify for tax deductions they aren't aware of, and you may be able to reduce your liability by paying for things you need or enjoy.
Creating a Unique Tax Strategy
Every person and every situation is unique, which is why it's important that we review your income, your assets, and your expectations for the next year to create a customized tax saving strategy. We can create a custom plan to help you reduce your liability, using legitimate tax strategies that use the law in your favor.
Camputaro & Associates has provided financial guidance to local individuals and businesses in Daytona Beach since 1974. We stay up to date on new tax law and regulation, and we are members of the American Institute of Certified Public Accountants (AICPA) and the Florida Institute of Certified Public Accounts. With decades of experience, we can help you.
Camputaro and Associates
Certified Public Accounting Firm
136 N. Orchard Street, Suite 8
Ormond Beach, FL 32174