Taxes

Business Tax Planning vs. Business Tax Preparation: Maximizing Financial Efficiency

When it comes to managing the financial aspects of a business, taxes play a pivotal role in shaping profitability and long-term success. Business owners often find themselves navigating two key processes: tax planning and tax preparation. While these terms are closely related, they are fundamentally different paths to a company’s financial health. What exactly are the differences between tax planning and tax preparation? How do they contribute to maximizing financial efficiency?

Tax Planning as a Service

Most people just think of taxes when returns are due. That’s probably because most accountants and other financial professionals don’t offer much else. Tax planning is a specialty. It’s also an incredibly important issue to consider for wealth building success. There are lots of different applications for a tax planning professional. It ranges from careful and calculated steps for long term wealth building to panic button moments where today’s decision could have a big impact on taxes owed tomorrow. Sure, it’s great if you can know in advance what you’ll do in every circumstance, but life doesn’t always happen that way. Good tax planning consultants are not only there for retirement strategies, but are also available when you need input on now decisions that could be costly if not structured carefully. Don’t think you don’t make enough money to make tax planning necessary? Lifestyle focused people can often benefit the […]

Secure 2.0 Act Changes to Federal Tax Code

It’s a new year, which means new tax code changes. Some of those changes involve the Secure 2.0 Act. Many will appeal to tax payers. There are over 100 provisions in this Act, designed to encourage participation in retirement plans. We’ll focus on some of those most likely to be relevant to you. 401(k)s Employers can provide incentives for employees to contribute to their retirement accounts as part of the Secure 2.0 Act provisions. Student loan payments will qualify as employee contributions for employer matches to retirement accounts come 2024. Studies and personal stories argue student loan debt is a barrier to wealth building. By allowing employees to count repayments on higher education costs as substitutes for retirement contribution matches on 401(k)s, younger employees can see the benefits of compound interest earlier with retirement investments. One of the Act’s provisions involves auto enrollment in employer 401(k) or 403(b) retirement […]

What’s the deal with Virginia’s Mileage Choice Program?

Have you heard about Virginia’s Mileage Choice Program? If not, and you drive a fuel-efficient vehicle, you will. In July of this year (2022), the Commonwealth started offering drivers of low mileage vehicles an alternative to the standard fuel tax legislated in 2020. Those who drive electric cars or have automobiles with MPGs of 25 or greater may have noticed an extra charge as part of their registration fee over the past couple of years. It’s calculated on the assumption everyone drives 11,600 miles per year. Those who may be driving a lot fewer miles were being taxed the same as those with many more. The pitch is, it can save those equally but unfairly taxed some money; and it’s being promoted heavily as a kind-hearted initiative for efficiency vehicle sufferers. When anyone shows such enthusiasm over what sounds like a revenue loser, I feel the need to ask […]

tax plan now for 2023 returns

A lot has changed with tax laws this year. This will affect how you can reduce your tax debt, where you can move things around to your benefit, and what you owe. You can’t change your capital gains tax liable after the year ends. Now is the time to plan for 2023 tax returns so you don’t get costly surprises when it’s time to file next year for what you did this year. You could save more than you might imagine. Talk to your tax professional. He or she may be able to find ways to move money around to save you thousands and/or reduce your AGI taxable income. It’s incredibly important that you address this now. You don’t want to pay any more taxes than you have to. Changes to standard deductions Numbers are going up in almost all categories for the standard deduction. In 2022 (that’s for […]