The goal of any good tax plan is to arrange your legal and financial affairs
so as to minimize your tax burden.

At Ourednik Law Offices, our attorneys are educated to be skilled tax planners from day one because every Ourednik Law Offices attorney possesses a Masters degree in Tax Law.

Many attorneys are simply unprepared to navigate the complicated provisions on the Internal Revenue Code and Regulations. This is not the case at Ourednik Law Offices. Whether the issue is local, state, or federal taxation, we are prepared to accomplish your goals with an eye towards careful tax planning. Contact Ourednik Law Offices today to see how we can put your ideas to work without any tax surprises.

What Is Tax Planning?

Sometimes people wonder just exactly what encompasses tax planning.
To properly understand the issue, it is important to differentiate between several commonly recognized methods of minimizing taxes.

What Are Some Basic Tax Planning Strategies?

Contrary to popular belief, effective tax planning is not a tool only for the “super rich”. There are many tax planning opportunities available for all taxpayers who meet the proper circumstances. Some of which include:

  • Proper tax timing – Determining when to recognizing gain or loss, when to pay expenses, or when to report income is an essential part of any tax plan. The general rule is that deductions or credits should be taken as soon as possible while the recognition of income is to be deferred as long as the law will allow.
  • Selecting the right investments and retirement plan – Many people are familiar with the preferential tax treatment afforded long term capital gains on investments. However, what may not be as well understood is that these preferential rates can vary depending upon the asset class as well as the personal income tax bracket of the taxpayer. Likewise, with retirement plans, the tax consequences of each plan will vary. Some, such as a 401(k) or standard IRA, allow for years of tax deferral. Others, such as a Roth IRA, provide for near tax elimination. Some plans have strict contribution limits, while others can be more flexible. All of these issues are matters to be discussed with a tax planning professional.
  • Choosing the right business structure – No one wants to pay taxes twice! That is why it is essential to select the proper business entity for the circumstances. For some corporations in the United States, taxes may be levied on income at the corporate level and then again to individuals when dividends are paid.

    This is why many small businesses are structured as pass-through entities such as partnerships, LLCs, and S corporations so that any income is taxed only once on the individual owners of the business. A tax professional can help select the proper entity and then advise on how the individual members may wish to govern tax matters between themselves.

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We are ready to address your tax planning needs