Tax Planning: WEEK 1
Its Holiday time! .
Thanksgiving is now finished. The shopping now begins. The discounts, and spending, come forth.
Its time to spend on gifts. Should we say not do? Maybe your thinking your Next Years Income Tax Refund will bail you out? In some ways, it can- if its higher, right?
For this week, and the next several weeks, I am going to dedicate my column space to ” Income Tax Planning”.
After all, who isn’t going to need a higher Tax Refund early next year?
What is Tax Planning?. No, it is not Tax Preparation. That can take anywhere from 15 minutes to 6 hours, based on the preparation of the worksheets and schedules. Tax Planning is much more comprehensive.
I like to say that the difference between Tax Preparation & Planning is like baking a cake. Tax planning is getting all the ingredients or receipts and put them in its proper places-while- Preparation is , after gathering all the ingredients and stirring, to now popping the cake into the oven and letting it bake. Like anyone who bakes or cooks, getting all the “right” ingredients, takes longer, but the cake can sure taste better!
At the beginning of 2014, many tax rates and breaks were made permanent. The increased certainty brought by these tax law changes has in some ways made tax planning in 2015 a little easier.
But the changes also brought tax hikes to many higher-income taxpayers. In addition, some new and expanded taxes under the Affordable Care Act (ACA) now affect higher-income taxpayers. The ACA also has a tax impact on many businesses, and last year’s tax law changes only temporarily extended many valuable tax breaks for businesses.
It’s also important to remember that, even though many tax law provisions are now “permanent,” this simply means that they don’t have expiration dates. With tax reform still on its agenda, Congress may make some major changes in the future. So in your (tax year ) 2014 planning, don’t count on the tax regime remaining the same indefinitely.
What does this all mean? Tax planning is as essential as ever.
Tax Planning, in its purest form, should provide an overview of some key tax provisions that you need to be aware of and offer you a wide variety of strategies for minimizing your taxes. But there isn’t enough space to touch on all of the available tax-savings opportunities.
So, for the next several weeks, join us in educating you to the world of Tax Planning but please , contact your tax advisor to learn exactly which strategies can benefit you the most.
Week 2 INCOME & DEDUCTIONS
Week 3 FAMILY & EDUCATION
Week 4 INVESTING
Week 5 BUSINESS
Week 6 RETIREMENT
Week 7 ESTATE PLANNING
Week 8 TAX RATES
Anthony Rivieccio is the founder & The CEO of The Financial Advisors Group, celebrating their 18th year as a fee only financial planning firm specializing in solving one’s financial problems. Anthony has been a recognized financial expert since 1986. He has been seen, heard or read by many national and local media outlets including: Klipingers Personal Finance Magazine, The New York Post, News12 The Bronx, Bloomberg News Radio, Bronxnet Channel 67 TV, The Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS1010 Radio, The Bronx News newspaper and The Bronx Chronicle.
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