Charles E. Schneider CPA, Ltd.
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Tax Planning

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Tax Planning Situations

2010 Tax Planning Questionnaire

 

  

"Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes." 
                                                                                                                             U.S. Circuit Court Judge Learned Hand (1934)

Could you benefit from tax planning?

Click here to review a list of common situations where tax planning before the end of the year may
save you some taxes.

Tax Reduction Ideas

Would you like to review some tax strategies to reduce your tax bill
for this year?  Take a look at the 2010 Tax Planning Questionnaire by
clicking the link below.

2010 Tax Planning Questionnaire - Click here to get started.

 

What is tax planning?

Tax planning and tax-cutting has somewhat of a mysterious aura about it.  I'll attempt to explain it in plain English.   There are actually several basic tax-cutting strategies, and most plans involve one or a combination of them.  In a nutshell, the strategies are:

  • Splitting income among several family members or legal entities in order to get more of the income taxed in lower brackets.

  • Shifting income from one year to another in order to have it fall where it will be taxed at the lower rate.

  • Shifting deductions from one year to another to place them where the tax benefit will be greater.

  • Deferring tax liability through certain investment choices and through pension/retirement plan contributions.

  • Structuring your affairs to obtain a tax deduction for some expenses paid for things you enjoy - a vacation home for example.

  • Recharacterizing income from ordinary income taxed at your
    highest marginal rate to capital gains taxed at substantially
    lower rates.

  • Investing your money to produce income that is exempt from either federal or state income tax or both.


Professional Help
Today's tax laws are so complicated that unless your financial affairs are extremely simple, chances are you will benefit from at least occasional help from a tax professional.  It is too easy to overlook deductions and credits to which you are entitled if you prepare only one return a year.  Even the use of computer software is no substitute for the assistance of a seasoned tax professional.