Article provided by: SMALL BUSINESS ACCOUNTING & TAX
Tax planning strategies from Small Business Accounting & Tax Inc. provides you with legal ways to avoid paying as much taxes as possible. In fact, that is the goal of tax planning – tax avoidance! If you are looking for Omaha tax planning services, give us a call. We can help to keep you in compliance and save as much money as possible by completely minimizing your taxes. However, it will not work without a strategy, so give us a call today for a free consultation.
Tax avoidance is the use of honest, legal, and legitimate methods to help you reduce your taxes to the lowest level possible. Tax avoidance is not the same as tax evasion, which is reducing or not paying taxes illegally. Tax evasion carries penalties of jail time and heavy fines when caught, so please, let us take care of your Omaha tax planning for you, and don’t resort to these methods!
When to Start Tax Planning
It is important that we begin planning your tax strategies at the beginning of the year, not at the end of the year. You don’t want to wait until the end of the year or when it’s close to the tax filing deadline of April 15. If you do that, you won’t have ample opportunity to make necessary changes in your tax situation, and your tax planning efforts will be rendered all but useless.
In order for tax planning strategies to reap optimal results, you will need to have some idea of the amount of income and deductions that you anticipate you will earn for the year. For example, if you anticipate making more money in the current year, you may choose to accelerate your deductions for this year. This way, you will achieve greater tax savings at a higher rate. Accelerating your deductions might include paying off your property taxes early, before the year is over. You may also decide to make charitable contributions during the current year because these often provide you with a better tax advantage.
What are Some Examples of Tax Strategies?
Of course, there is no one-size-fits-all tax strategy. That’s why a consultation and ongoing communication is essential for effective Omaha tax planning. If you want your tax strategy to work, you need a customized solution. Of course, it all depends on your situation. If you own your business, we can probably find some flexibility for you in deducting a portion of your home, so long as your home is used primarily for business. What would be a good example of this? Let’s say you provide a consulting service, and your home is the primary location where you conduct your business, then this would apply.
Other examples include if you are divorced and pay alimony. If that’s the case for you, then this amount can be deducted on your tax return. If you were to renovate your business so that you could conduct business meetings, a portion of your home’s cost could be deducted. Of course, these are just a couple of random examples of how you can save money with an Omaha tax planning strategist.