For our clients that have moving parts to their tax returns such as business activity, interest, dividends, capital gains, etc., we give them the opportunity to do tax planning each year. While this service costs money, the return on investment is well worth it. This is especially true in such a complex market.

The question we often get from individuals new to the tax-planning world is, “Why do I need that?” While the answer can vary from client to client, the sentiment is the same. Making decisions that will help your financial situation only works when you are forward-thinking. When clients call us to let us know what they have already done, instead of asking what they should do, it removes any opportunity to look at tax strategies and growth options that can accomplish long-term goals.

While some clients are determined to use real estate for long-term investment strategies, others want nothing to do with the real estate market and would rather invest in things like business ventures, stocks and bonds, mutual funds, and life insurance packages.

We all have different motivations and levels of knowledge, and the complex and sometimes torturous tax code can be daunting. For example, the Advanced Child Tax Credit payments being made to families might seem like a great thing while the money is coming in, but the bottom line impact at tax filing time will cause many households to owe money that they otherwise wouldn’t owe if the Credit were received at filing time. This and many other intricacies of the tax world can be navigated with proper planning.

So, when should you plan? The answer is BEFORE any major decisions need to be made. At the very least, planning should be done before year-end to allow decisions to be made before the tax year closes, but in reality, you should be in communication with your CPA and/or Advisor throughout the year to avoid surprises. We have saved our clients millions of dollars through planning. Don’t pay more to the IRS than is required!

If you would like to learn more about how we can help you plan to accomplish your financial goals, give us a call today at 435-865-7666.