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