Tax Planning considers the tax implications of individual, investment, or business decisions, usually with the goal of minimizing tax liability. Taxes can be minimized via income deferral/shifting, deduction planning, investment tax planning, and year-end planning strategies.

Often during Year-End Planning with your tax professional, it will be recommended to defer income to the following year or shift said income to an alternative financial asset.

Investment Tax Planning involves evaluating how to best position assets in order to minimize the amount of taxes you pay on an ongoing basis. It involves in-depth analysis and understanding of strategies such as wash sales, gains/losses, 1031 exchanges, passive income/loss, and exempt or deferred investment vehicles.

Tax issues are never far from the mind of the business owner, and it is likely that many decisions made will be tax based. Some events in life, such as retirement, come with tax considerations as well. Understanding tax implications will help significantly in the creation of an overall investment plan.

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Investors should consult with a tax or legal professional regarding their individual situations.

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