Tax Planning and Advisory

Our Tax planning happens throughout the year as well as year-end:

  • Whether you provide us with your data or we prepare the financials, we periodically assess and analyze the information presented to us and prepare suggestions and strategies to optimize your taxes.

  • After receiving and analyzing the relevant information, a virtual meeting will be scheduled. During this meeting, we will review your financial situation based on your personal circumstances and/or life changes and discuss potential items that can reduce your tax liability. This meeting gives us the chance to discuss undiscovered income exemptions and additional deductions.

  • Changes in tax laws are also examined and could be applied to your situation.

Some things that can impact your tax liability, both as a business entity and an individual:

  • Selecting the right business type (such as Sole Proprietorship, LLC, S-Corporation, Partnership or C-Corporation) for your business can have major tax implications. A business type is your company's legal structure, while a tax return (1120, 1120S, 1065, 1040) is a form used to report income and file taxes. Selecting the appropriate tax return depending on your business type is pivotal. 

  • Major life events such as marriage, divorce, birth of a child, or death of a family member can have tax implications. We’ll consider how these changes may affect your filing status, deductions, credits, and other tax-related matters.

Other Tax Planning considerations:

  • Charitable contributions, Sec 179 and bonus depreciation for business asset purchases, sale of personal/rental property, HSA, retirement planning such as Roth or traditional accounts, capital gains instead of ordinary income, qualified business income deduction to name a few.

  • Reach out to us and we will explore all options to maximize your tax savings.

Some key elements of the One Big Beautiful Bill Act

  • The OBBBA restores full 100% bonus depreciation, which had been scheduled to phase down to 40% in 2025. Businesses can now immediately deduct the entire cost of qualifying assets—such as equipment, machinery, vehicles, and certain building improvements—placed in service after January 19, 2025. A temporary incentive also applies for qualified production property, allowing full bonus depreciation on newly built nonresidential facilities used for manufacturing and production.

  • The maximum Section 179 deduction increases to $2.5 million, with the benefit phasing out once total purchases exceed $4 million. This provision continues to allow businesses to fully deduct the cost of qualifying equipment and certain property in the year placed in service.

  • Permanent 20% Qualified Business Income (QBI) Deduction for Pass-Through Entities. The OBBBA makes the 20% Qualified Business Income (QBI) deduction permanent for owners of pass-through entities, including sole proprietorships, partnerships, S corporations, and certain trusts and estates. 

  • Taxpayers may deduct up to $10,000 in interest paid on auto loans for U.S.-assembled passenger vehicles. The deduction phases out above $100,000 in MAGI (single) or $200,000 in MAGI (joint).

  • The SALT deduction cap increases to $40,000 ($20,000 for married filing separately) for most taxpayers, with a phasedown for Modified adjusted gross income (MAGI) above $500,000 ($250,000 MFS). The cap and thresholds are adjusted for inflation through 2029, after which they revert to $10,000 in 2030. The pass-through entity tax (PTET) workaround remains available.

  • No Tax on Tips, No Tax on Overtime and deduction for seniors.

Budgeting and Forecasting:

  • A well-managed budget helps a business stay on track, anticipate challenges, and identify opportunities.

  • Regularly track and update your budget based on changing conditions.

  • Keep a balance between cost control and investments that will drive growth.

Understand Your Business Financials

  • Know your revenue: Track all income streams, including sales, investments, or other sources of revenue.

  • Understand your costs: Break down fixed and variable costs (e.g., rent, utilities, raw materials, labor).

  • Margins and profitability: Monitor your gross and net profit margins to ensure your business remains profitable.

Set Clear Business Goals

  • Short-term goals: Increasing sales, launching new products, improving cash flow.

  • Long-term goals: Expanding the business, increasing market share, or achieving financial sustainability.

  • Set specific, measurable goals tied to revenue growth, cost reduction, or investment in the future.

Monitor and Adjust Regularly

  • Quarterly reviews: Regularly review your business budget to ensure it’s still aligned with goals and any changes in your business.

  • Analyze variances: If you’re consistently over or under budget in certain areas, investigate why and make adjustments.

  • Be flexible: Business conditions change, and your budget needs to be adaptable to new opportunities or challenges.

Set up a monitoring system

  • Use accounting software or financial dashboards to track your budget in real time.

  • Monitor key financial metrics (gross margin, operating expenses, net income) to spot trends, areas of concern, or unexpected costs.

  • Regularly compare actual performance to budgeted projections, and adjust as necessary.