Here’s a New Year’s Resolution – Pay Less Tax!

Paying less tax is a motivating New Year’s resolution that you can stick to throughout the entire year.  One of the benefits of paying less tax is that you can allocate the cash you were going to spend on unnecessary taxes to the activities and goals in your life that you REALLY want to achieve.  With proactive tax planning, you can begin recognizing the benefits of paying less tax right away.  The immediate gratification from tax savings can be used to compensate you until those other resolutions that take a little longer are realized, like reversing the effects of indulging on fresh-baked holiday treats.

Getting started with proactive tax planning does not have to be daunting.  Here is a five-step process to help you get started:

1.      Identify your current goals and priorities

2.      Take an objective view of your current tax positions

3.      Collect legal, tax-saving strategies that align with your goals and priorities

4.      Implement tax-saving strategies

5.      Enjoy pursuing your priorities with cash not wasted on unnecessary taxes

You may be able to address all of the steps outlined above on your own, but may want to enlist the help of a qualified professional to make sure your plan to pay less tax is comprehensive.  For example, when we seek out tax-saving strategies, we look for opportunities within the following areas of your life:

·        Family, household make-up and employment

·        Business activities

·        Investment activities

·        Succession planning and estate considerations

By the time the new gym crowd retreats, you could be well on your way to paying less tax and funding your aspirations with your New Year’s tax savings.