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Essential Tax Planning

Updated: Dec 23, 2023

The worst feeling is knowing that you’ve just had a big year and done nothing to plan for it. Tax planning is a critical part of the success of any business, and there are many occasions when individual taxpayers will benefit as well. No matter the situation- you're in deep water, and complexities have come up that require the help of a professional, and it’s time to learn about what you’re getting into with tax planning.

How it Works

The first step in planning is gathering current year to date information. For businesses this will be the financial statements and include all of the things that are needed for individual planning. For individual tax planning we will gather year-to- date check stubs, retirement statements, and other statements from ordinary sources of income. We annualize this date, so we’ll have a good idea how much you’re taking home in the year, and how much is being withheld for income taxes.

Next is where we bring in any one-off items that you don’t normally have. This can include the sale of a home, rental, stock, making more money at your job, and a number of other extraordinary things that are not typically on your tax return.

After we have gathered all of the information related to the current tax year we plug the data into our software and run a “mock” tax return. This critical step establishes a baseline for the current year and sets us up for “Scenario” planning.

For folks just looking for their upcoming tax liability we’re done here. We’ll deliver the results for the upcoming filing season, and potentially recommend estimated payments or adjustment to paycheck withholding to avoid any underpayment penalty.

Scenario Analysis

Advanced tax planning includes Scenario Analysis which allows us to explore the effects of various strategies that may reduce your tax burden. Businesses might consider investing in equipment, a vehicle, inventory, or more employees. They might choose to realize income from a big sale at the beginning of the next tax year so as to shift income into a year where large costs are expected for improvements, etc. Individuals might consider contributing to retirement, or a health savings account.

Wage Planning

Wage planning is critical for S Corporations who are required by the IRS to pay reasonable compensation. The S Corp saves money by paying a lower salaries, but they have to be careful that Officer wages are not so low that the IRS could determine it to be unreasonable. If it were, all net income of the business becomes subject to self-employment taxes. The very thing you’re trying to avoid!

Furthermore, with proper tax planning the W-2 paid as Officer’s Compensation to the owner of a S Corporation becomes a tool to pay into income taxes. Based on your estimated tax liability we will make a withholding recommendation to ensure that Uncle Sam is sending you money when you file instead of the other way around!

Getting Started

Need planning? Some tax preparers won’t even offer it. They’re either too busy or prefer to take time off in the fall. At Rangeview Tax & Accounting we put our clients first and are committed to helping them achieve financial success! That all starts with planning and is offered along with a paid tax return. Our free planning session each fall will give you access to a baseline tax projection, as well as one basic scenario! We continue to offer planning services to clients throughout the year as needed for our normal hourly rate.

Please book a Free Discovery Appointment below to discuss any questions that you have about your planning. If you’re ready now book your Tax Planning Consultation today, and we’ll get to work on your customized tax plan. Get the peace of mind of having a plan in place!

Book a Free Discovery Appointment

See if Rangeview Tax & Accounting is a good fit for you with a Free Discovery Chat! We offer in-person, on-site, and telephone discovery chats. On site chats are typically business with exceptions available under appropriate circumstances for individuals.

Book a Paid Consultation

Our paid consultation is $50 and puts you on the line with a tax professional who will answer questions that you have related to IRS Code, and Tax Strategies. Pay for your consultation, select one of the available appointments, and provide the general topic of discussion or questions that you wish to discuss. If you choose to move forward with our services, we will credit the consultation fee towards a future tax return preparation.

Tax Projections

Stay on top of the upcoming filing season with a tax projection! We will collect various data including current pay stubs, expected business income, and more extraordinary situations like selling a home, rental, or business. From there we annualize the figures and run a mock tax return to get a good idea of an expected tax liability. This gives us a baseline in which we can further advise tax planning strategies that may apply.

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