Navigating the Complexities of Tax Planning: Our Holistic Approach to Maximizing Your Wealth

Tax planning is an essential part of personal and business planning. No one wants to pay more taxes than they have to, but navigating the complex tax code can be overwhelming. That’s why having a tax planning philosophy and annual tax due diligence process helps guide decisions, reduce tax liabilities over your lifetime, and provides a second pair of eyes to help ensure your tax plan is being properly implemented.

At the heart of our tax planning philosophy is the goal to reduce tax liability over your lifetime, not just in any given year. We approach tax planning holistically, with five key principles that guide our approach:

  1. The purpose of a business is to make money, and paying taxes is a reality of achieving that purpose. We don’t try to avoid taxes entirely, but we aim to reduce the amount paid over the long-term through purposeful planning strategies.
  2. Profitability is a top priority, even if it means sacrificing the immediate gratification of a tax deduction. We don’t advocate spending money to avoid taxes, as this can undermine the goal of profitability.
  3. When accelerating deductions, we think long-term and consider delaying deductions to a higher-earning year. This can result in a more significant tax benefit in the long run.
  4. For those in the 24% federal tax bracket or lower, paying taxes now can be beneficial, especially if revenue and profits are expected to grow in the near future.
  5. Paying yourself a market-based wage can optimize your payroll for maximum deductions and retirement savings, while maintaining reasonable compensation from the IRS’s perspective.

Our annual tax due diligence process serves as a second pair of eyes on your return, striving to catch potential errors and seeking to ensure you’re taking advantage of every opportunity to reduce your tax liability. We collaborate with you and your accountant, keeping everyone informed on our planning strategies and progress.

Ultimately, our tax planning philosophy and tax due diligence process aim to reduce your tax liability over your lifetime while prioritizing profitability and long-term planning.

If you want to learn more about our strategic tax planning and wealth management services, book an appointment with one of our Simplify365 Associates today. We can provide you with personalized tax planning strategies that align with your financial goals and help you navigate the complex tax code with confidence. Contact us today to schedule a consultation and take control of your financial future.

Vance Wealth, Inc is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Vance Wealth and its representatives are properly licensed or exempt from licensure. The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor