Tax Planning

Planning around taxes

Tax planning aims to ensure tax efficiency, which can help you keep more of your hard-earned money for immediate use and long-term wealth building.

Managing taxes involves implementing different techniques and strategies to minimize tax obligations. Some ways to achieve this include utilizing tax credits and deductions, arranging investments and transactions tax-efficiently, timing and structuring transactions, and employing tools such as trusts and partnerships. Effective tax planning has the potential to significantly impact your investment returns as it enables you to retain more profit, which can multiply over time and result in substantial accumulation in the long run.

While tax planning can help reduce taxes and increase investment returns, it’s essential to understand that there is no one-size-fits-all approach. Our team will collaborate with you, your accountant, and your attorney to evaluate the advantages and disadvantages of various tax planning strategies, considering their benefits and any potential drawbacks or risks.

Comprehensive Tax Planning Solutions

At Able Wealth Management, we offer comprehensive tax planning solutions tailored to meet our clients’ unique needs. Our team of tax experts utilizes a strategic approach to manage our clients’ financial affairs, optimizing their tax liability while ensuring compliance with relevant tax laws and regulations. We provide a thorough analysis of our clients’ financial situation, develop effective tax planning strategies, and offer advice on the timing of financial transactions. We aim to reduce our clients’ tax liability by deferring or accelerating income, utilizing tax-advantaged investment vehicles, maximizing deductions and credits, and structuring business transactions to minimize tax obligations.

Maximizing Tax-Saving Opportunities

Our tax planning services at Able Wealth Management are designed to help our clients maximize tax-saving opportunities. We ensure that our clients understand the various tax-saving opportunities available to them, such as deductions, credits, and exemptions. By taking advantage of these opportunities, our clients can minimize their tax liability and optimize their financial goals. We also keep our clients informed of changes in tax laws and regulations that may affect their financial affairs. Our tax planning services provide a strategic approach to help individuals, businesses, and organizations manage their financial affairs, minimizing their tax liability while optimizing their financial goals.

The three pillars of tax planning are critical components that form the foundation of effective tax planning.

Strategic Analysis of Financial Situation

The first pillar of tax planning involves a strategic analysis of an individual's financial situation. This analysis includes reviewing their income, expenses, investments, and assets. By analyzing their financial situation, taxpayers can identify opportunities for tax optimization, such as utilizing tax deductions and credits, deferring or accelerating income, and structuring business transactions to minimize tax obligations.

Knowledge of Tax Laws
& Regulations

The second pillar of tax planning is having a thorough understanding of the tax laws and regulations governing the specific jurisdiction in which the individual resides or conducts business. Tax laws and regulations are constantly changing, and staying informed about these changes is essential in developing effective tax planning strategies.

Timing of Financial Transactions

The third pillar of tax planning is careful consideration of the timing of financial transactions. Strategic timing of transactions, such as the purchase of assets and equipment, can help taxpayers take advantage of tax depreciation benefits or defer income to a future tax year to minimize their tax liability in the current year.

Tax Mitigation Strategies

The primary objective of tax mitigation is to decrease the overall tax liability while adhering to legal boundaries.

Tax mitigation strategies encompass a range of legal and ethical approaches to minimize tax obligations. These strategies come in various forms, such as capitalizing on tax deductions and credits, optimizing the tax efficiency of investments and transactions, and leveraging tax planning tools like trusts and partnerships.

Opportunity Zone Funds

Investing in Opportunity Zone Funds provides tax benefits for investing in designated low-income areas. The tax benefits include deferral of capital gains taxes on the sale of an asset, reduction of capital gains taxes on the investment, and elimination of capital gains taxes on the appreciation of the investment if held for at least 10 years.

1031 Exchanges

1031 Exchanges allow you to defer capital gains taxes by reinvesting the proceeds from the sale of one property into another similar property. This allows you to avoid paying taxes on the sale of the property and defer them until you sell the replacement property.

Charitable Remainder Trusts

Charitable Remainder Trusts allow you to donate appreciated assets to a charity while receiving a stream of income for a specified period. This provides tax benefits in the form of an income tax deduction for the charitable donation and deferral of capital gains taxes on the sale of the appreciated asset.

Grantor Retained Annuity Trusts

Grantor Retained Annuity Trusts allow you to transfer assets to your heirs while minimizing gift and estate taxes. This provides tax benefits in the form of reduced gift and estate taxes and the ability to transfer assets to your heirs at a lower tax cost.

Spousal Lifetime Access Trusts

Spousal Lifetime Access Trusts allow you to transfer assets to your spouse while minimizing estate taxes. This provides tax benefits in the form of reduced estate taxes and the ability to transfer assets to your spouse at a lower tax cost.

Charitable Lead Annuity Trusts

Charitable Lead Annuity Trusts allow you to donate assets to a charity while reducing your estate tax liability. This provides tax benefits in the form of an income tax deduction for the charitable donation and reduced estate taxes.

Donor Advised Funds

Donor Advised Funds allow you to make charitable donations while receiving tax benefits. This provides tax benefits in the form of an income tax deduction for the charitable donation and the ability to donate appreciated assets without paying capital gains taxes.

Solar Flip Partnerships

Solar Flip Partnerships allow you to invest in solar energy projects while receiving tax benefits. This provides tax benefits in the form of tax credits for investing in renewable energy projects and the ability to offset taxable income with losses from the investment.