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 TAX PLANNING
One of the biggest complaints that business owners and high, net worth individuals often have about tax and financial advisors is that these professionals do not show you specific strategies to dramatically and permanently reduce your taxes. Instead, tax advisors typically focus on accounting for last year’s taxes rather than proactively planning for reducing next year’s taxes. When is the last time your current tax advisor called you with new ideas about how to reduce next year’s taxes?
Many people simply don’t know where to obtain more sophisticated tax planning advice. They have been led to believe by their current advisors that they are already “doing everything they can” to reduce their tax burden. Even worse, they may have been led to believe that any method enabling them to pay significantly less tax is risky or illegal because it’s simply too good to be true.
To test that assumption, find your approximate income level in the following table:
| Income |
Tax Rate The IRS
Expects You To Pay |
| $231,300 |
14.1% |
| $339,100 |
16.0% |
| $520,200 |
17.6% |
| $1,588,500 |
19.4% |
Source: Congressional Budget Office - Effective Federal Tax Rates.
Is your current tax rate higher than the tax rates on the table for your income level?
If it is, you are paying far more in taxes than is legally necessary, far more in taxes than your income earning peers, and far more than the IRS itself expects you to be paying.
Tax Planning Considerations:
- Tax Deferred Investments
- 401(k)
- IRA
- Tax Free Investments
- Investment Grade Insurance
- Liquid(k)™
- Business Ownership for W-2 Individuals
- Tax Deductible Expenses
- Business Structures
- “C” Corp
- "S" Corp
- Limited Partnership
- Limited Liability Company
- "Fringe" Benefits for Business Owners
- Closely Held Insurance Company
Unfortunately for the average investor, most financial advisors do not have access to many of these specific tax strategies. This could literally be costing you tens of thousands of dollars every year in unnecessary taxes.
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Disclaimer: QuadWealth does not provide any legal advice to clients regarding tax plans. Unless express client permission is provided, a client’s particular tax plan will remain confidential between the client and his/her tax attorney or accountant.
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