Recently, I’ve met up with my best friend Joe, to discuss techniques for financial planning. Joe is a tax accountant and knows all the tricks that you need when you want to really optimize your taxes and plan ahead accordingly. Throughout his career, Joe has consulted individuals to help them set up proper strategies. Without any further hesitation, I’ll present you Joe’s Tax Plan.
Minimizing the tax burden for you
The success of someone depends on many internal and external factors. One of the external factors is taxation. Basically, the tax objective of any person is to minimize the tax burden while complying with tax laws and avoiding risks. Due to the principle of sectional taxation, the tax on income is recalculated each year on the basis of the respective annual salary. Since the income situation or investment activity may vary each year, medium and long-term Tax planning also require the inclusion of tax factors.
The individual measures to be implemented on the basis of the planning come together in a coordinated approach to form the tax Plan says, Joe. In the short term, the planning period covers at least two years, while the medium and long-term strategy should be designed for five to ten years.
Where to start?
Tax planning and Joe’s tax Plan development is a complex topic, which can already be seen from the multitude of starting points, such as:
- Location of the individual
- Location of assets
- Legal form
- Asset and capital structure
- Production and sales (for business owners)
- Human resources (for business owners)
- Information management (for business owners)
Tax planning and tax strategy development go far beyond pure tax considerations and are also part of the highly complex topic of financial planning. Therefore, comprehensive knowledge and experience in various areas are necessary. Consultants like Joe have knowledge and experience across federal state borders. Experts are in all states in the US. You will find the right contact person for your tax planning and tax strategy development through a google search or through friends & family. As this article is purely informational, we do not provide financial advice.
Pension and taxes: Taxes on Retirement
Wealthy Americans hide 20 percent of their income from the taxman. Now taxes maybe even higher.
The best opportunity in the new tax package is not a higher tax on income, but an investment in the IRS. It has been deliberately weakened in recent years. Audits of wealthy Americans have been neglected, and that has probably cost the government about $750 billion in tax revenue.
The chances of the $1.8 trillion tax package making it through Congress unscathed are virtually nil. So they will have to cut back on the ambitious “American Family Plan.”
Although a majority of Americans favor higher taxes on the wealthy, it will be difficult to find a majority in Congress. Conservative Americans aren’t the only ones who oppose the tax package. Others are also balking, fearing they will alienate and lose influential top earners in their constituencies.
So when planning out your taxes, you’ll definitely keep this in mind too.