ax Planning Guide
Year-End
Tax Planning for Individuals
We recommended many solid strategies,
Please review.........
As you know, tax laws are always changing. Congress
debates whether to eliminate or make permanent certain
provisions. Ask our financial planners for help in
staying abreast of the latest changes and the development of
strategies for tax reforms that effect your tax
situation.
Consider the following . . . . . .
Tax Planning:
- Maximize your exemptions
- Plan around the Kiddie Tax
- Shelter your children from earned income by establishing
an IRA (Individual Retirement Account)
- Take advantage of Tax Credits and Deductions
- Understand and protect yourself from AMT (Alternative
Minimum Tax)
- Itemize deductions
- Bunch deductions
- Pay estimated state tax early
- Donate appreciated property
- Optimize investment interest expense
- Understand the tax aspects of divorce
- Claim all available home-related deductions
Education
Strategies:
It is never to early to plan for educational expenses.
Ask for assistance from our Financial Planners. We
can provide information on:
- Coverdell Education Savings Accounts (ESA'S)
- Education credits
- 529 Plans
- Deduction for higher education expenses
Investment
Planning:
- Dividends
- Capital gains & losses
- Gain on home sale
Busness Tax Planning
Choosing a Business Structure
Employer-Provided Fringe Benefits
Health Savings Accounts
Business
Deductions:
- New manufacturing deduction
- Claim Section 179 expense
- Lower your taxable income
- Avoid mid-quarter convention
- Maximize depreciation
- Capture all travel, transportation, and entertainment
costs
- Be aware of inventory issues
- Put your kids to work
- Go into business with your kids
- Deduct business losses
Retirement
Strategies:
- Individual Retirement Accounts (IRA's)
- ROTH IRA's
- 401(k) Plans
- Introducing Roth 401(k)s
Estate Planning
& Strategies:
- Maximize your estate tax exemption
- Gifting benefits
- Lifetime gift tax exemption
- Annual gift for exclusion
- Gift stock to family members
- Employ a buy-sell agreement that values your business for
estate tax purposes
- Create an employee stock ownership plan (ESOP)
- Take advantage of the estate tax installment payment
option
Early planning is key to making the most of your
opportunities.