Getting hit with an unexpected tax bill on your individual or business return is never fun, which is where tax planning comes in. Fully understanding your tax situation before year-end can reduce the risk of a large bill that you can’t afford to pay. Taxation planning opens the door to effectively minimizing your tax bill each year, all through legal methods. Tax planning services through JS Morlu give you the tools needed to find creative tax-reducing strategies and clear transparency going into the next tax filing season.
What is Tax Planning?
Tax planning is the process of taking all of the items that will be reported on your individual and corporate tax returns and analyzing them to find creative ways to reduce your liability. Income from all sources is considered, such as investment income, salaries and wages, business income, and retirement income. In addition, all potential deductions and credits are looked at. Common deductions and credits include homeowner expenses, business deductions, gain limitations, and child-related items. When your full financial picture is looked at through income tax planning services, you will be able to easily tell whether you are due a refund or owe Uncle Sam some money.
Who Uses Tax Planning?
Everyone can benefit from planning their taxes, both at the corporate and individual levels. Personal tax planning and corporate tax planning detail the income and deductions you expect to take. The bottom-line number is key for determining the next steps. For example, at the individual level, if you notice you are going to have an amount due, you can start saving extra money each month to be able to pay off your tax bill. When you are hit with an unexpected tax bill that you can’t pay, you can rack up fines and penalties for late payments. Moreover, at the corporate level, if your tax plan is showing a high level of income, consider purchasing that piece of equipment you’ve been needing to reduce your liability. Ultimately, both individuals and businesses use tax planning.
What are the Benefits of Tax Planning?
There are many different benefits that our taxation planning service brings you. The first and most important is the ability to fully understand where your tax liability will end up when the return is filed. Although a tax planning advisor cannot guarantee that the results on the tax return will end up exactly like was projected, their estimates are often very close. Additionally, corporate tax planning gives business owners the opportunity to grow their business.
Meticulously tracking income and expenses leads to implementing tax favorable situations, such as electing to pay taxes at the business level instead of passing it through to your individual return. Not only do businesses benefit, but individuals do too. Credits and deductions have phase-out limitations. Understanding where your income stands allow you to take advantage of as many credits and deductions as possible, resulting in a more favorable tax position.
What Services Does JS Morlu Offer?
JS Morlu offers a complete tax planning service package, assisting you on everything and anything tax. Our tax team has the knowledge and experience required to give you valuable and accurate information regarding your individual or corporate tax return. In addition, we have members on our team experienced in complex tax issues, such as international tax and investments, making us your go-to experts. Among the list of tax planning services we offer include:
- Individual – Individual tax planning is one of the most common services we offer because almost all individuals are subject to taxation. When life changes happen, it is important to contact a professional who can walk you through the tax implications. Common life changes we help our clients work through include getting married, having a child, opening a business, receiving an inheritance, and planning for the future.
- Schedule C – Becoming a small business owner is great for most, but it does come with tax implications that need to be considered. Depending on your income level, you may be required to pay quarterly estimates to avoid fines and penalties. JS Morlu cannot only help you track your self-employment income, but we can also assist in making estimated payment suggestions to ensure you stay in compliance with regulatory authorities.
- Schedule E – Pass-through company income and rental properties are a great income generator, but they too come with tax implications. Pass-through business income opens the door to exclusive credits and deductions that you are going to want to claim. Tax planning for these credits is key to be sure they aren’t missed. Additionally, your rental property needs to plan for depreciation and other deductions to reduce your taxable income.
- Foreign – Foreign income is a tricky situation, especially with new legislation passed expanding the scope of reporting requirements. Understanding the impact foreign income has on your individual tax return can be done with international tax planning. We have members on our team well-versed in international tax planning to assist with your every need.
- Corporate – Corporate tax planning is just as important as planning for your individual return. Proper corporate tax planning can allow you to reduce your taxable income, which every business should strive for. Moreover, proper corporate tax planning can lead to business growth, which remains key for long-term success.
- Investment – The stock market is a great place to generate additional wealth, but it also gives way to capital gains taxes, which sometimes rank in higher than individual tax rates. The sale of your house, stocks, and other commodities need to be planned for in order to effectively time the sale. For example, if we notice that capital gain taxes are set to decrease in the next year, we can suggest you hold off on the sale of certain investments to minimize the taxes paid.
- Retirement – Retirement tax planning has never been more important, especially with uncertainty surrounding the social security fund. The IRS has certain credits and deductions in place to promote saving for retirement. With JS Morlu analyzing your tax situation before year-end, we can find innovative ways for you to take advantage of these items.
- Inheritance – Inheritance tax planning is critical if you are expecting to receive a large influx in income. To mitigate some of the tax burden, many individuals lean towards moving items to legally separate business structures, such as a trust. JS Morlu can work with you to find the most beneficial way to set up your inheritance income through our tax planning services.
- Succession Planning – When it finally comes time to throw in the towel and pass your business down to the next generation, you will want succession tax planning. Passing your business down draws in gift tax regulations that need to be meticulously followed to avoid paying taxes. JS Morlu’s succession planning services include taking a look at your current business net worth and calculating any tax liability that you can expect to see, making you fully informed of what the future holds for your business.
What are the Strategies that Result from Taxation Planning?
Different strategies result from tax planning with JS Morlu. Our team takes a creative approach to every tax situation, looking for innovative ways to save you money. Common individual strategies include properly timing the sale of investments and taking advantage of new credits and deductions. At the corporate level, our tax planning services can uncover strategies that take advantage of the S179 deduction, entity-level taxes, research and development credit, and many others. For more details on the strategies, we can help you with, reach out to one of our team members.
Can Planning My Taxes Help with Quarterly Estimates?
Simply put, yes. Taxation planning on a quarterly basis includes analyzing your current income and projecting income through the end of the year. This gives you a clear-cut picture of your estimated tax liability, so you can make accurate quarterly estimates in accordance with IRS rules. Most small businesses, high net worth individuals, and business owners are required to make quarterly estimated payments, which is why contacting JS Morlu for tax planning is so important.
Can JS Morlu Do Taxation Planning for My Pass-Through Business?
JS Morlu frequently works with individuals that own a pass-through business. In fact, it is recommended that we complete tax planning for every detail of your tax situation, which involves tax planning for your business as well. Most business credits and deductions are passed through from the business return, making it crucial that effective taxation preparation strategies are discovered before the business return is filed. JS Morlu is your one-stop-shop for all your tax needs.
Reach out today to have one of our team members to walk you through the specifics of how our tax planning service can benefit you. Odds are we can come up with creative solutions to save you money on your next tax return. Not only can we complete an in-depth tax projection for you, but we can also file your business and individual tax returns. Our full-service approach is there to help you with your every tax need, so reach out today.