Summary of The Basics of Tax Planning
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Summary of The Basics of Tax Planning
The goal of tax planning is to arrange your financial affairs so as to lawfully minimize your taxes. We have looked at just a few of the multitude of tax planning strategies available, especially to those who own a small business. Regardless of how simple or complex your tax strategy is, the goal will be one or more of the following: reducing your (or your business’s) taxable income through investment strategy, deductions and tax credits, reducing your tax rate, and/or delaying the time when you must pay the tax. Tax planning is such a complex field that, especially if you are self-employed or own a business, it’s wise to at least consider working with a tax professional.
Practical Ideas I Can Start with Today
- Begin by understanding the broad, fundamental goals of tax planning.
- Examine my investment and business activities to identify specific areas where tax planning opportunities may arise.
- Find a reputable tax professional to help me understand what specific steps could potentially minimize my tax bill.
- Determine whether any possible planning opportunities make sense in the context of my overall financial situation and goals.
What you have learned
- What Is Tax Planning All About?
- Reducing Your Taxable Income: The Fundamentals
- A Closer Look at Adjustments to Income
- Reducing Your Applicable Tax Rate
- Controlling the Time When Your Tax Must Be Paid