Tax planning is the process of managing your financial transactions to avoid unnecessary tax expenses. In practice, this can mean increasing and speeding up tax deductions and credits, or making the best out of all eligible tax breaks under the Internal Revenue Service’s code. For instance, consider Juanita, who worked as an administrator for a landscaping company. She earned a decent salary and spent frugally. But she initially dismissed the need for “tax planning” as something only her boss might need until she started her own side business at night knitting shirts and selling them on Etsy.
Fortunately, before she got too far along in her venture, Juanita spoke with an experienced tax attorney who helped her take advantage of IRS tax breaks that saved her substantial tax savings during her first year of operations.
The Golden Rules
- Share taxable income among family members.
- Take Advantage of all legal exemptions.
- Take advantage of all tax deductions and rebates from tax-saving investments.
- Leverage tax-exempted incomes.
- Tax planning is life planning!
Work with a professional to explore your options for tax-advantaged retirement plans, estate planning, exemptions, deductions, and reviewing tax returns.
If you have questions about estate planning and tax law, call an estate planning attorney, like an Estate Planning Lawyer Belgrade, MT, today.
Thank you to Joel Silverman, Attorney and Author, and the experts at Silverman Law Office, PLLC, for their insight and expertise in estate planning.