Nov 17, 2022
In this episode Janathan Allen discusses the value of, basis for and steps to accomplish tax planning for individuals and corporate entities. Jan explains the primary goal of tax planning: to review sources of income and structure personal and business transactions in a manner which ultimately reduces tax liability within the code and regulations of federal and state tax laws. The best time of year to begin tax planning is at the end of a fiscal or calendar year as you approach planning for the coming year. Tax planning generally involves a review of the previous year(s) tax returns as well as income streams and liabilities in order to evaluate opportunities for tax optimization. The discussion begins with evaluation of active and passive income and the types of taxation which applies to each bucket. An effective tax plan is based upon getting perspective on where things stand and developing a strategy which provides actual steps the client can implement to accomplish their goals while minimizing associated taxation. How can you best accelerate or decelerate income and associated expenses or losses in order to accomplish the best outcome from a tax perspective? How does underlying accounting throughout the year affect the ease and cost of effective tax planning? What should a US expat know about continuing tax exposures and how an effective tax plan will reduce their tax burden? Join us for another substantive episode of ABCast.