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Tax Planning Chart

Tax Planning for Year End

Tax planning for year end is upon us.  I have written multiple times that you can’t start too early.  We at Fragnoli & Company, CPAs cannot stress enough the effectiveness of tax planning and the need to start sooner than later.  Well, it is almost September and it is definitely not too early.  Here are a few things you and/ or your business can look at and consider:

1.  Are there any equipment, furnishings, or other capital additions that need to be made and is it better to make those additions this year or next.

2.  Is it time to create and implement a retirement plan (if you don’t already have one).

3.  If you are a cash basis taxpayer, are there any expenses that can be prepaid for next year.  For example, we prepaid our tax preparation software fees for next year.

4.  If you or your company reside in a state with high income tax rates, consider prepaying any projected state tax liability by year end.

5.  Review any capital gains transactions executed this year and see if you have any investments in a loss position that may be worth liquidating to offset the gains.

6. Impact of education credits for full time college children who also have some taxable income.

These are just a few of the basic planning considerations individuals and companies should consider.  Tax planning is such a critical service we render offer to our clients.  It can be such a profitable action taken by our them.  The implementation of one simple planning recommendation can save a client significant tax dollars in  the current year or next year.   Be sure to have your CPA, EA or other tax preparer review any potential effect of the alternative minimum tax in any planning action you take.  This tax has impacted more than one client of ours when looking into tax considerations.  Also, be sure to have the plan incorporate all related entities.

If you are interested in have a comprehensive tax plan performed for you and/ or your business, please feel free to call us at Fragnoli & Company, CPAs in Brentwood and Hendersonville, Tn at (615) 377-0705.