Tax Planning Essentials
Tax planning considers the tax implications of individual, investment, or business decisions, usually with the goal of minimizing both current and future tax liability. While decisions are rarely made solely on their tax impact, you should have a working knowledge of the income or estate tax issues and costs involved.
Strategies to Reduce Tax Liability
A major goal of tax planning is minimizing federal income tax liability. This can be achieved by:
- Reducing Taxable Income Through Income Deferral or Shifting,
- Deduction Planning,
- Investment Tax Planning,
- And Year-End Planning Strategies
Tax-Efficient Investment Strategies
Investment tax planning involves evaluating how to best position assets in order to minimize the amount of taxes you have to pay on an ongoing basis. This requires year-round planning, and it begins with an in-depth understanding of the tax implications of various investments and
- Treatment of Wash Sales,
- Tax-Exempt Investments,
- Gains and Losses,
- 1031 Exchanges,
- Qualified Dividends,
- Tax Straddles,
- Tax-Deferred Investing,
- Passive Income and Losses, and
- Mutual Fund Taxation.