Planning is the key to successfully and legally reducing your tax liability. Tax planning is the process of analyzing a financial plan from a tax perspective. The goal of effective tax planning is to make sure you’re paying your taxes efficiently. Our experienced attorneys can help you make sure that all elements of your financial plan function together with maximum tax-efficiency. Reducing tax liability and increasing the ability to make contributions toward retirement plans are critical for success, and we’re here to help.
To create an effective and efficient tax plan, let the experienced tax planning attorneys at Hollander & Hollander, P.C. help.
About Tax Planning
Tax planning encompasses a variety of considerations: assets, income timing, and purchase timing are all important. Plus, chosen investments and various retirement plans should go hand-in-hand with tax filing status, as well as deductions in order to create the best possible outcome.
Tax planning allows you to streamline your tax payments such that you will receive considerable returns over a specific period of time involving minimum risk. Also, effective tax planning will help in reducing your tax liability.
Tax planning can be categorized as:
- Permissive tax planning, which is planning that falls under the framework of the law.
- Purposeful tax planning, which is planning with a specific objective.
- Long-range/short-range tax planning, which is planning executed both at the beginning and near the end of the fiscal year.
Benefits of Tax Planning
Tax planning has significant financial benefits, including:
- Reducing taxes on your income.
- Reducing taxes on your estate, allowing your family to keep more of what you’ve made.
- Reducing taxes on your gifts so you can make more gifts.
- Reducing taxes on your investments so you can grow your wealth.
- Reducing taxes on your retirement distributions so you can retire in the style you’re accustomed to.
- Growing and preserving assets by keeping the government from taking more than the absolute minimum.
- Deferring income so you can keep your money now and pay fewer taxes later.
Tips for Reducing Your Tax Liability
Tax planning is complex enough such that most individuals simply don’t have the experience to do it effectively, so the first and most important tip is to contact the experienced tax planning attorneys at Hollander & Hollander, P.C. Nonetheless, some simple tips include:
- Deferring tax liabilities through certain types of investments such as pension plans, employee stock purchases, contributions, and other similar plans.
- Finding certain investments to produce tax-exempt income that is protected from federal and/or state taxes.
- Finding tax deductions by investing in things you enjoy, such as a vacation home.
- Splitting income among several family members or various legal entities in order to get more of the income taxed in a lower tax bracket.
- Shifting income or expenses from one year to another in order to allow them to be taxed at a lower rate.
Let Hollander & Hollander, P.C. Help You Develop a Comprehensive Tax Plan
Tax planning is exceptionally valuable and available to you by simply contacting the experienced tax planning team at Hollander & Hollander, P.C. Contact us today to set up a no-obligation, free initial consultation.