Essential Tax Planning: The Difference Between Filing Taxes and Controlling Them
- Jerrod Aud
- Sep 20, 2023
- 3 min read
Introduction
Most taxpayers spend more time shopping for a new television than planning for one of their largest annual expenses: taxes. Effective tax planning occurs throughout the year and allows taxpayers to make informed financial decisions before it is too late.
What Is Tax Planning?
Tax preparation reports what already happened. Tax planning helps influence what happens next. A properly executed tax plan evaluates income, business profits, investments, retirement contributions, asset purchases, entity structure, and future financial goals.
Tax Preparation vs. Tax Planning
Tax preparation focuses on compliance and reporting prior-year activity. Tax planning focuses on creating future tax savings and developing a roadmap for informed decision making.
When Should Tax Planning Be Done?
Rangeview typically performs tax planning during June and July, as well as October and November. These planning windows provide opportunities to implement strategies before year-end.
Who Benefits Most from Tax Planning?
Business owners, S-Corporation shareholders, real estate investors, and high-income individuals often benefit significantly from proactive tax planning.
7 Tax Planning Strategies We Frequently Discuss
Topics often include S-Corporation elections, retirement contributions, equipment purchases, income timing strategies, entity structure reviews, estimated tax planning, and real estate tax strategies.
The Cost of Not Planning
Waiting until tax season often means missed opportunities. Proactive planning provides better cash flow management and fewer surprises.
Tax Planning Is an Investment, Not an Expense
Effective tax planning often identifies opportunities that exceed the cost of the engagement while providing certainty and improved decision-making.
How Rangeview Helps
Rangeview Tax & Accounting focuses on tax reduction strategies, entity optimization, retirement planning, cash flow forecasting, estimated tax projections, and long-term wealth building.
Final Thoughts
Tax preparation reports the past. Tax planning helps shape the future. The best tax planning opportunities happen before December 31st.
What We Need for a Tax Planning Appointment
Prior tax returns, current financial statements, payroll information, investment information, and year-end projections help us provide meaningful planning recommendations.
Download the Tax Planning Checklist
We have several options to take the next step
Book a free discovery chat if you still have a few more questions, or a Tax Planning appointment if you're ready to go ahead and get started on your customized tax plan.
Book a New Client Appointment
See if Rangeview Tax & Accounting is a good fit for you! We offer in-person, on-site, and telephone chats. We require a $75 deposit that is applied to future services when you come onboard to RANGEVIEW!
Book a Paid Consultation
Our paid consultation is $100 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.
Tax Planning
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.
Great insights on tax planning! Gathering year-to-date info and running a mock tax return is such a smart way to stay ahead. For anyone looking for expert guidance, a reliable tax accountant service in NewYork can help optimize strategies and reduce tax liability.
This post is an informative and practical guide on Tax Planning, offering essential strategies to help individuals and businesses optimize their taxes. It clearly breaks down key concepts, making complex planning more accessible and actionable. Well‑written and highly useful!