Tax Planning
Many small business owners think about their taxes in December, and most individuals don’t think about their taxes until it’s time to prepare the return!! Don’t wait. You should maintain contact with your tax preparer during the year. I can sit down with you and project what your taxes will be, and determine if any steps can be taken to reduce that tax burden.
Your personal life is changing. You may get married, divorced, have a child, buy a house, sell a house, etc. All of these things can affect your taxes. In some cases, your taxes may change for the better. In some cases, they may change for the worst. But don’t wait until the following year to find out.
As CPAs, most of us maintain office hours during the year, so why not take advantage of it? If a life-changing event occurs, contact your CPA. CPAs can determine what the tax impact will be, and how best to plan for it. One thing you do not want is to work hard all year long, and end up giving 30% or more of your money to the government in taxes.
Tax planning is not just a service, but actually requires a relationship between you and your CPA. Build that relationship, stay in contact during the year, and minimize the chances of an unwanted surprise when your taxes are filed.