Tax Planning
“In this world nothing is certain but death and taxes.”
-Benjamin Franklin
Paying taxes may be inevitable, but with proper tax planning, you can minimize your tax liability and avoid paying unnecessary taxes. The Internal Revenue Code is complex and always changing. The attorneys at GLFPE are well versed in the available credits, deductions, and tax planning strategies to lower your tax liability and maximize your refund. We also track political and legislative developments, so you can be prepared for future contingencies. Our attorneys work to get to know you, your family, your business, and your goals, to develop comprehensive strategies to achieve those goals.
Individuals
Tax credits and deductions can reduce the amount of tax you owe. A deduction reduces the amount of your income before your taxes are calculated while a tax credit can reduce the amount of tax you owe or increase your tax refund, even if you don't owe any tax. Knowing which tax credits and deductions are available to you is key to reducing the amount of tax you owe.
Tax Deductions and Credits available to Individuals include:
Family and Dependent Credits
Income and Savings Credits
Homeowner Credits
Health Care Credits
Education Credits
Work Related Deductions
Itemized Deductions
Education Deductions
Health Care Deductions
Investment Related Deductions
Businesses
A small business may be subject to income tax, self employment tax, employment taxes, excise taxes, sales taxes, and local taxes. Understanding your tax obligations and proactive tax planning are the keys to minimizing your tax owed and maximizing your business' profitability. Our experienced tax attorneys will get to know you and your business in order to determine what credits and deductions your business qualifies for, and can help you develop strategies to minimize tax owed.
Some of our business tax planning strategies include:
Choice of business entity. Did you know that whether you are an sole proprietor, partnership, S Corporation, or C Corporation will determine how your business is taxed, which deductions are available, and how you will file your taxes? The attorneys at GLFPE can review your business to determine which structure is best for your business. Sometimes, as your business grows, the best structure for your business may change.
Reimbursable Expenses. A reimbursement or other expense arrangement is a system that an employer uses to pay, substantiate, and recover the expenses, advances, reimbursements, and amounts charged to the employer for employee business expenses. An accountable plan is a specific plan that follows IRS regulations for reimbursing workers. When an accountable plan is used, reimbursements are not subject to withholding taxes or W-2 reporting.
Deductions. Depreciation is an annual income tax deduction that allows you to recover the cost of certain property over the time you use the property. Generally, when a business purchases business expenses such as equipment, vehicles, and software, the business must depreciate the asset over a set period of time. However, electing the Section 179 deduction allow you to recover all or part of the cost of certain qualifying property, up to a limit, in the year you place the property into service. This strategy can provide an immediate tax savings to your business.
Fringe Employee Benefits Plans. The payments of wages to employees triggers employment tax costs, but payment of fringe benefits to employees often does not. Tax exempt benefits you can offer your employees include: employer sponsored health insurance, long term care insurance, group term life insurance, disability insurance, educational assistance, dependent care assistance, transportation benefits, and meals provided for employee convenience.
Retirement Plans. A 401(k) plan is a qualified retirement plan that allows an employee to have the employer contribute a portion of their wages to an individual account under the plan. Generally, an employee's elective deferrals to the plan are not reported as taxable income on the employee's individual income tax return. Employer contributions are deductible on the employer's federal income tax return to the extent that the contributions do not exceed limits in the Internal Revenue Code.
Business Tax Credits. The Internal Revenue Code contains approximately 30 general business credits, including but not limited to: energy credits, work opportunity credits, disabled access credit, qualified plug in electric vehicle credit, renewable electricity credit, credit for employer social security and Medicare taxes paid on certain employee tips, credit for employer provided childcare facilities, energy efficient home credit, credit for small employer health insurance premiums, and employer credit for paid family and medical leave.
