Edward C. Challberg CPA

Comprehensive Tax Planning in the San Francisco Bay Area and Northern California - (415) 491-1322

Effective Tax Planning

Tax planning is effective when:

  • Planning is implemented for multi-years (current and upcoming years)
  • The nuances and complexities of the tax laws are considered
  • Both the dental practice entity and individual tax returns are considered together
  • Client preferences, risk tolerance, and financial goals are integrated into the planning
  • Various alternatives are compared

Common Tax Planning Strategies

  • Defer tax into a succeeding year
  • Choose the most appropriate retirement plan and maximize contributions
  • Choose the correct entity for the business or investment
  • Make charitable contributions that save you the most money
  • Defer tax on the sale of real estate by doing a 1031 exchange
  • Invest in tax-free bonds
  • Employ a number of ways to reduce the 3.8% investment income tax
  • Employ one’s spouse or children in an appropriate way with thorough documentation
  • Gift assets to children
  • Determine whether buying or leasing an auto results in the lowest tax and which mileage rate method is most favorable
  • Establish and fund a health savings account
  • Establish and fund a 529 plan
  • Installment solar panels on the roof of one’s residence or business