Archive for the ‘tax planning’ Category

It isn’t quite mid-year yet, but it is almost too far gone for many tax getting yourself ready for this season.

Here’s a checklist to make sure you are well on track on your tax planning in 2010.

Point #1
Should you add an entity or change how an entity is taxed within your tax strategy?

Entities are some of the greatest tools to cut back taxes. Having the correct time to add an entity and understanding the right entity to incorporate can help to save up to $10,000 a year in taxes. However, the entity should be available in order for the tax savings to happen.

After i create a tax strategy which has a client, it is not uncommon for an entity to become created realizing that once it reaches a certain level of income, an election will likely be built to change what sort of entity is taxed. Missing this election or otherwise which makes it at the ideal time may be an extremely costly tax mistake.

This is the time to consider adding an entity or changing how each of your existing entities is taxed. Waiting anymore could minimize the tax savings just for this year.

Point #2
Are your entities paying the optimal comes from minimize your taxes in your tax strategy?