Effective TAX PLANNING

Effective tax planning goes beyond the traditional and basic stuff you here year after year:

1) Make more charitable contributions

2) Invest in a 401K

3) Obtain a larger mortgage so you can have a larger mortgage interest write off

Effective tax planning should include looking at what are your financial goals. For example:

a) If you are interested in investing some money, maybe we should look at an Oil and Gas Project that offers you an upfront tax write off of intangible drilling costs, pays you returns on your invested money and has the possibility of hitting an oil well that will be you royalties well into the future.

b) If you own a business, are you in the right entity structure to reduce your tax liability or is your entity costing you more in taxes.

c) In this so called down market, have you thought about buying real estate, having a tenant pay your mortgage and then getting a write off for owning the property.

d) What about turning a hobby into a legitimate business taking write offs on your taxes that you are already paying for but cannot deduct any where else?

e) Here is my favorite- every thought about hiring your kids, paying them just enough money so you can still claim them as a deduction but yet you are shifting the income over to them and thus by using the standard deduction they would not owe any tax? The ideas I have given you have barely scratched the service of the many ideas you can use to take plan.

Click here for more information about our Tax Strategy and IRS Tax Help Services.