Tax Planning Means Different Things to Different People

A CPA/accountant/EA typically thinks of tax planning as doing a tax return for a client and sending them the bill for the taxes due. Some might recommend a SEP IRA or SIMPLE Plan, but they typically do not deal with real tax planning.

An attorney thinks of tax planning as doing someone’s living trusts so the client can maximize estate tax exemptions.

A financial planner/insurance advisor typically thinks of tax planning as the use of a 401(k) plan.

What we want to impress upon potential clients is that if you are not using a firm that knows the above topics and more, YOU ARE NOT receiving the best advice possible.

What does that mean? It means you are paying too much in income taxes and capital gains taxes, and ultimately that your heirs will pay too much in estate taxes upon your death.

Don’t do what everyone else does (the do-nothing position), be proactive to protect your money from the IRS and state government. Remember, your number one guaranteed creditor every year is the IRS. Only you, with the help of qualified advisors, have it in your power to protect your money.

If you want to determine if you are paying too much in income taxes, we recommend that you take the “LOSS TEST.”