Tax Planning

Navigate the tax landscape confident in the knowledge that you are paying taxes responsibly while still protecting (and retaining) your assets. Tax planning is an integral component of your overall financial plan. Whether you’re a small business owner, the owner of several retirement accounts, or simply hoping to streamline your tax strategy, Prizm Financial can help.

Why is Tax Planning Necessary?

The tax code is a daunting and complex system of rules and directives on taxes. Engaging in financial planning without the guidance of an experienced professional tax advisor is a big mistake. We’re here to help take the uncertainty and possibility of overtaxed assets out of the equation.

Income tax and estate tax are just two of the big tax categories that you might know about, but you probably are not aware of all the tax-favored ways to structure your accounts. Small business tax planning is another rocky landscape, as is capital gains tax planning. Our tax advisors will work with you to create a personalized tax plan to retain assets based on your individual situation and needs.

Estate Tax Planning

You have probably heard of the federal estate tax, but have you considered ways to prevent your assets from being overtaxed when you pass away? If you are not familiar, the estate tax takes a portion of a deceased person’s net value before distributing assets to heirs. Also called a “death tax,” the estate tax considers all of your assets and interests.

There are a variety of ways to structure your assets and financial plan so that you can reduce estate taxes. These options range from transferring assets to minor children to setting up specific types of trusts. Estate tax planning is an especially dangerous area to forget about, as failure to carefully plan can lead to huge tax increases.

Income Tax Planning

There are also strategies we can help you utilize to reduce your income taxes. There are many rules concerning taxes on income, and everyone is used to income taxes. But there is no need to overpay, especially when you are planning for retirement or for the security of your family.

Retirement is an especially important consideration in the context of income tax planning; when you are receiving retirement income, careful planning ahead of time can make sure that you have the funds needed to live comfortably. Some retirement plans require taxes paid before contributions, and others tax only withdrawals. We are here to help you figure out which plans are right for you.

Capital Gains Tax Planning

“Capital gains” are investment profits obtained from selling a capital asset for more than the initial purchase price. Capital gains tax planning helps you minimize taxes on capital gains by utilizing a number of different strategies.

One important thing to note about capital gains tax planning is that this tax only occurs when the capital asset is sold, not while the investor continues to hold it. There is no time limit to how long an investor may hold a capital asset before selling it.

Careful consideration of rules concerning capital gains and losses can help you reduce overall capital gains taxes over time. For example, waiting until retirement to realize capital gains can lead to lower taxes, since the investor may now be in a lower income bracket. We will help you consider this and other options and rules during the capital gains tax planning process.

Small Business Tax Planning

Small business owners have enough on their plates without trying to figure out tax planning! This is why many small business owners don’t even consider their tax planning options. We are here to help you realize that this is costing so much extra money in taxes that it would be well worth the time.

A skilled tax advisor will be an invaluable team member. Small business tax planning will help you avoid so many pitfalls that you’ll be amazed at what we can accomplish together. Don’t let easily fixable tax planning mistakes cut deeply into your bottom line.