Why do I Need Tax Planning?
“The only thing that hurts more than paying an income tax is not having to pay an income tax.” ~ Thomas Dewar
Do I need Tax Planning if I already have a CPA?
Many of us believe that our tax professional is ensuring we are paying the least amount of tax. But that may not be true.
Tax preparation is not the same as tax planning.
Tax preparers look backward. What’s in the rearview mirror? How do we account for what’s happened? How much taxes do we owe on what happened? Can reduce taxes for last year?
Some discount preparers won’t even consider tax savings ideas. They are strictly preparers, not strategists.
Some good strategists may look forward a bit too. Let’s carry forward these losses. Let’s depreciate that asset.
But they don’t see everything and are thus not equipped to complete tax planning. It’s not what you’re paying them to do.
Tax preparation asks, “How can we save the most taxes last year?”
Tax planning asks, “How can we save the most taxes over a lifetime.”
We’ll give the government every dime we owe, but let’s not leave a tip.
Get a good financial plan that includes tax planning. Have them coordinate with your tax preparation. Be willing to pay more taxes this year to avoid them in the future.
Keep more of your money.
Tune in to the podcast for the full story.
This article is educational only and is not intended to be investment, legal, or tax advice or recommendations, whether direct or incidental. Again, this is not investment advice. Consult your financial, tax, and legal professionals for specific advice related to your specific situation. Never take investment advice from someone who doesn’t know you and your specific situation. All opinions expressed in this article are the opinions of the people expressing them. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. RetireMentorship is not affiliated with any Registered Investment Advisor, Broker-Dealer, or other Financial Services Company.
