Developing a tax plan that works for you

When you work with The Accounting Lab for Tax Planning services and our team of seasoned professionals who have provided this service for over a decade, you receive a comprehensive approach to tax planning. Our tax planning services are designed to uncover opportunities that may lead to substantial savings on your tax bill.  

So, what’s the difference between tax planning services and simply doing your taxes each year? With tax planning services, your team at The Accounting Lab guides you through our process to understand your business and uncover how we can save you on your taxes each year.

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In-depth discovery and tax plan presentation

In the discovery phase of our tax planning process, we work with you to uncover tax savings and understand your business to ask the right questions that lead to savings in the future. Are you in need of a new car that could be a company expense? Do you plan on reinvesting in the business? By understanding your upcoming and ongoing needs, we’re able to help you plan effectively to lower your tax burden year after year.

Once we’ve learned as much as possible about your business and potential tax savings, we create a multi-year plan to ensure you save on your tax burden each year. This allows you to plan for tax savings each year and plan for normal life expenses like a home purchase or other items that depend on your taxable income.

Maximize Retirement Contributions

  • Contribute the maximum allowed to your 401(k), IRA, or other retirement plans. Pre-tax contributions reduce taxable income.
  • For business owners, consider SEP IRAs or solo 401(k)s for higher contribution limits.

Leverage Tax-Advantaged Accounts

  • Use Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs) to pay for medical expenses with pre-tax dollars.
  • Contributions to HSAs grow tax-free if used for qualified healthcare expenses.

Take Advantage of Tax Credits

  • Credits are often more beneficial than deductions. Look into credits such as the Child Tax Credit, Energy-Efficient Home Improvement Credit, or Earned Income Tax Credit (EITC).
  • For businesses, explore R&D tax credits or Work Opportunity Tax Credit (WOTC).

Harvest Capital Losses

  • Offset capital gains by selling underperforming assets. You can deduct up to $3,000 in losses annually from other income.
  • Be mindful of wash-sale rules, which prevent repurchasing the same asset within 30 days.

Defer Income

  • If possible, defer income to a future tax year to lower current-year taxes (especially if you expect a lower tax bracket in the future).
  • Self-employed individuals can delay invoices until January to shift taxable income to the following year.

Accelerate Deductions

  • Pay deductible expenses (like business equipment or medical expenses) in the current tax year to reduce taxable income.
  • Businesses may use Section 179 or bonus depreciation rules to deduct the full cost of assets upfront.

Use Gifting Strategies to Reduce Estate Taxes

  • Gift up to $17,000 per year (2024 limit) per recipient without triggering gift taxes.
  • Larger gifts can be sheltered by lifetime exemptions to reduce future estate tax liability.

Incorporate a Donor-Advised Fund (DAF)

  • Donate appreciated assets to a DAF to get an immediate tax deduction, while retaining flexibility on when the funds are distributed to charities.

Optimize Business Structures

  • Ensure your business structure is tax-efficient. S-corporations can allow for savings on self-employment taxes.
  • LLCs, partnerships, and C-corporations each come with different tax advantages—choose one that aligns with your goals.

Utilize Income Splitting

  • Shift income to family members in lower tax brackets (like employing children in a family business).
  • This strategy spreads income across multiple taxpayers to reduce the overall tax burden.

Forecasting

Designed to help you keep a pulse on cash flow and spend more time looking forward to growth our forecasts provide a way for you to analyze and prepare for future growth.

 

Scenario Planning

Time to hire that office manager or new technician or have a large expense coming up? Our Fractional CFOs can help you determine the best move for you and envision changes in the market as well.

Ongoing Review and Recommendations


After finalizing your tax plan and strategies to lower your tax burden year after year, we will continue to meet with you and understand changes and updates to your business and income to ensure you receive the most tax savings possible.

How this benefits you:

  • Personalized Strategies: Tailored tax strategies to align with your unique financial situation and goals.
  • Maximized Deductions: Identifying and optimizing deductions to minimize your taxable income.
  • Strategic Planning: Proactive measures to navigate changes in tax laws and regulations.
  • Year-Round Support: Ongoing support to address tax-related queries and adjustments as your financial landscape evolves

Are you ready to find the right strategies to minimize your tax burden, increase revenue and maximize profit? Let's chat!