Expert Tax Planning Services for Businesses & Individuals

Tax preparation is the process of compiling financial records, completing tax forms, and filing returns with the IRS and state agencies. It is a reactive process focused on compliance. Tax planning, on the other hand, is proactive—it involves strategic financial decisions throughout the year to reduce future tax liabilities, optimize deductions, and improve overall financial outcomes.

Tax planning should be a year-round process. Waiting until tax season often limits opportunities for deductions and credits. By planning early, you can make strategic financial decisions—such as adjusting investments, structuring business expenses, and timing income recognition—that will reduce tax burdens before the end of the tax year.

The most common tax deductions and credits include:

• For individuals: Mortgage interest, medical expenses, charitable contributions, student loan interest, and retirement savings deductions.
• For businesses: Home office deduction, travel expenses, depreciation, employee benefits, and R&D tax credits.
• Tax credits: Child Tax Credit, Earned Income Tax Credit, education-related credits (such as the American Opportunity Credit), and energy efficiency credits.

The eligibility for these deductions and credits varies, so professional tax planning ensures you maximize them legally.

Tax planning helps business owners structure their income, expenses, and operations in ways that minimize tax liabilities. Key strategies include:

• Choosing the right business entity (LLC, S-Corp, or C-Corp) to optimize taxation.
• Taking advantage of deductions for business expenses like home offices, travel, and equipment.
• Implementing tax-efficient payroll structures to reduce self-employment taxes.
• Utilizing retirement plans (SEP IRAs, 401(k)s) to shelter income.
• Using depreciation strategies to maximize asset write-offs.

With professional tax planning, business owners can legally reduce tax burdens while staying compliant with IRS regulations.

Tax-loss harvesting is an investment strategy where underperforming assets are sold at a loss to offset capital gains taxes. This reduces overall taxable income while keeping your investment portfolio balanced. It is particularly useful for high-income investors and those with significant capital gains from stock sales, real estate, or other investments.

Estate tax planning ensures that wealth is transferred to heirs with minimal tax impact. Strategies include:

• Using trusts (revocable and irrevocable) to reduce estate tax exposure.
• Annual gifting strategies to take advantage of the gift tax exemption.
• Setting up charitable remainder trusts to reduce taxable estate size while benefiting from philanthropic contributions.
• Life insurance trusts (ILITs) to exclude insurance proceeds from taxable estates.

These strategies help families preserve wealth while reducing estate and inheritance taxes.

To minimize taxes on investments, consider the following strategies:

• Holding investments longer to qualify for lower long-term capital gains rates.
• Investing in tax-advantaged accounts such as IRAs, 401(k)s, or Health Savings Accounts (HSAs).
• Tax-efficient asset allocation, placing high-tax assets in tax-sheltered accounts.
• Harvesting losses to offset gains and reduce taxable income.
• Using municipal bonds, which provide tax-free interest income for investors in higher tax brackets.

By structuring your investment portfolio wisely, you can increase after-tax returns.

• Traditional IRAs: Contributions are tax-deductible (if eligible), but withdrawals in retirement are taxed as ordinary income.
• Roth IRAs: Contributions are made with after-tax dollars, but qualified withdrawals (including earnings) are tax-free in retirement.

Tax planning helps determine which option is best based on your current tax bracket, expected future income, and financial goals. Many individuals use a strategy known as Roth conversions, where they convert Traditional IRA funds into a Roth IRA when they are in a lower tax bracket to reduce long-term tax liability.

At Sundack CPA, we provide personalized tax strategies tailored to your unique financial situation. Our services include:

• Year-round tax planning to reduce liabilities and optimize deductions.
• Investment and retirement tax strategies to enhance wealth accumulation.
• Business tax planning to help entrepreneurs maximize deductions and structure operations efficiently.
• IRS audit risk mitigation to ensure compliance and avoid red flags.
• Estate and trust tax planning to preserve generational wealth.

We take a proactive and strategic approach to tax planning, ensuring that you not only stay compliant but also keep more of your hard-earned money. Schedule a consultation today to start optimizing your tax strategy.