by Laura Kocum
on Monday, October 9th, 2017 at 1:12pm.
It's fall in Wisconsin! Leaves are changing, mums are in bloom, and while we enjoy the beauty of the season, The team at Meicher CPAs suggest it's the perfect time to look at your tax strategy. What is a tax strategy? Tax planning is really a way of making sure you utilize tax deductions, by getting everything that you qualify to use, and then using them the right way. "It's also utilizing tax credits, and making sure your capital assets are purchased at the right time," says David Meicher, CPA at Meicher CPAs.
Meicher acknowledges that the current political climate makes tax planning tricky. It's hard to plan for a tax structure that remains undefined. Even so, we know that the existing tax code is complex, and it's wise to plan ahead. "It really requires you to look at your unique situation, and consider the specific circumstances that will impact how you file," he says. "The tax code is written to make each taxpayer's situation unique." For this reason, you need a unique, personalized strategy to make sure you're maximizing your benefits and deductions. Meicher CPAs work with a wide range of business owners to help each one maximize their earnings and minimize their costs. Here are a few of their tips:
First- If your income fluctuates, you need to carefully strategize to make each year a successful year. Perhaps you have the ability to spread your income out over two years. If you've earned extra income, this might be a good year to invest back into your business, or donate to charity, and enjoy the deductions that can come with these decisions. If you've had a lower income year, it might make sense to seek out unrealized income, like real estate or stocks that could be cashed in at an appealing rate. You can also reduce expenses, to help protect your bottom line.
Second- Sometimes large purchases need to be made when it's economically smart, instead of waiting for the right tax season. A skilled CPA can look at your situation and help you determine the best time frame in which to make these purchases.
Third- If you are ready to retire, or ready for another financial commitment (maybe college tuition?), it's important to meet with your CPA. They can help you assess your current expenses and obligations, and determine new strategies or adjustments to make this new season successful.
Finally- Meicher says there is no "one size fits all' strategy. Instead, there is careful planning based on the specifics of your situation. In order to do it well, it's best to review your strategy in the fall, and get things in order before the year ends. Then, it's good to review it again, after you've paid your tax obligations, and are looking at a new year. Meicher CPAs welcomes the opportunity to review your tax strategy. To contact them, call 608-826-1900 or visit their website.