Income tax planning - Everybody needs it - individuals, partnerships, C corporations, S corporations, trusts, estates - Jon Andrews, CPA, P.C.
can help you lessen your tax burden
Federal and state taxes will take almost 28% of the total income of
the average American in 2004 according to the
Tax Foundation. Their report for 2004
can be found here.
According to Tax Foundation president Scott Hodge, "Despite the
dramatically lower tax burden in 2004, Americans will still spend more on taxes
than they spend on food, clothing and medical care combined. In 2004,
Americans will work 65 days to afford their federal taxes and 36 more days to
afford state and local taxes. Other categories of spending that require many
days of labor to afford are housing and household operation (66 days), health
and medical care (51 days), food (31 days), transportation (31 days), recreation
(22 days), clothing and accessories (14 days), saving (5 days) and all other (44
days)."
For corporations, trusts, and estates, the income tax burden can be even
higher than for individuals because of the much more compressed tax rate
schedule.
Because income taxes take such a large portion of your income, planning to
minimize the effect of the taxes is extremely important. Far too often, people
wait until the end of the year, or after the end of the year, to try to reduce
their tax bill. Income tax planning is best accomplished beginning early in the
year and certainly before any significant or extraordinary transactions are
completed.
The very best tax planning happens when tax savings is a "frame of mind" and
you, and your tax advisor, stay current with the ever-changing tax laws and how
they apply to your situation on an on-going basis.
On the following pages, we will explore some general tax planning ideas for
individuals, C corporations, S corporations, partnerships, and trusts and
estates. We will also look at some planning opportunities relating to divorce
situations, like kind exchanges, retirement plans, and self-employment tax
issues.
Keep in mind that the ideas presented are, by necessity, of a general nature.
We would be happy to discuss how these, or other ideas, apply to your specific
situation. Click here to send us an
email.
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money-saving planning ideas for more than 20 years. Click
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the sooner you can start putting more money in your pocket and less in Uncle Sam's.
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