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In recent years, financial advisors have increasingly embraced taxplanning as a core element of delivering value to clients. Despite this growing interest in tax conversations, most advisors are still quick to distinguish their services as "taxplanning", not "tax advice" – a distinction largely driven by liability concerns.
As the year comes to a close, now is the time to review potential financial moves to help minimize your tax burden heading into 2025. Proactive year-end taxplanning can lead to significant savings and set you up for financial success in the new year. Find your next tax advisor at Harness today.
Seth is the founder of Heartwood Financial Planning, an advisory firm affiliated with PlanMember Securities Corporation that is based in Fresno, California, and oversees approximately $100 million in assets under management for 850 client households.
We will cover qualification criteria, documentation requirements, and practical strategies to implement throughout the year. Professional services require documentation that shows a direct benefit to your business, supported by contracts or engagement letters.
Consider tax-advantaged options , such as ESOPs, which allow for capital gains tax deferral when proceeds are reinvested, or stock sales that may qualify for preferential long-term capital gains treatment. The most common exit options include mergers and acquisitions, asset sales, stock sales, and employee ownership plans.
So I would urge planners and individuals pursuing their own retirement plans to think about building in some of those lifetime, uh, giving, uh, aspirations. And also, you know, there are really nice taxplanning mechanisms that people can use to help them achieve, achieve those things as well. Exactly that. Why is figuring out.
Estate planning is one of the most important steps in securing your financial legacy, but its also among the most complex. Understanding how assets will be distributed, navigating tax implications, and aligning these decisions with your personal goals can feel overwhelming.
They receive copies of W-2s from employers, 1099s from clients, and other income-reporting documents. To avoid scrutiny, maintain detailed logs of business-related expenses , making sure that all deductions are directly related to business activities and are supported by proper documentation, such as receipts and itineraries.
Taxplanning serves as the cornerstone of the entire acquisition deal, extending far beyond a simple checkbox. Every element, from structure to price negotiations, hinges on understanding tax implications for all parties involved. Get it right, and you will have set yourself up for a smooth transition and maximized returns.
Other reasons involve changes in investment strategy, portfolio rebalancing, or a simple desire to exit a specific asset class. Capital gains can result from the sale or exchange of capital assets, such as fund interests or portfolio company stock. What tax strategies optimize secondary investments? FIRPTA planning using a U.S.
What are tax-efficient alternative investment structures? Tax strategies for high-income filers How Harness can help FAQs What are alternative investments? Alternative investments encompass a broad range of assets beyond traditional stocks, bonds, and cash.
This article explores the distinctions between K-1 and 1099 reporting, explaining their impact on taxplanning, basis calculations, filing deadlines, and strategies to optimize your after-tax returns from alternative investments.
The IRS implements whats known as the wash-sale rule, which prohibits you from buying a substantially identical security within 30 days before or after the sale of a loss-producing asset. Defer income where possible Strategically timing your income can have a major effect on your tax liability.
The key differences between 83(i) and 83(b) elections While both the 83(b) and 83(i) elections are tools for managing tax liabilities on equity compensation, they serve different purposes and have distinct rules. In short, this can mean employees have to pay taxes on gains they never actually received.
The platform itself does not offer financial advice Scenario-Based Guide: Hypothetical Investor Examples – Scenario 1: Linda, 68 — Planning for RMDs and Legacy Background : Linda holds a significant Traditional IRA and is approaching required minimum distributions (RMDs). Do I have a clear plan for RMDs and potential Roth conversions?
This contract serves as documentation for the IRS, substantiating your self-employment. A good rule of thumb is to set aside at least 30% of every payment you receive to cover your estimated tax obligationshowever, this percentage may need to be adjusted based on your individual tax bracket.
Whether you are contemplating forming an LP or already operate one, gaining clarity on tax matters can optimize your financial outcomes and ensure compliance with state and federal regulations. Identifying and leveraging these opportunities is a vital part of effective taxplanning.
FBAR and FATCA Beyond income tax, expats must also deal with the reporting requirements for foreign assets. citizens with financial accounts overseas must comply with the Foreign Bank Account Report (FBAR) and the Foreign Account Tax Compliance Act (FATCA), which require detailed disclosures of foreign-held assets.
The mechanics of recharacterization required careful documentation through IRS Form 8606 , along with coordination between financial institutions handling the movement of funds. Why investors sought recharacterizations before 2018 Market volatility frequently triggered recharacterizations when converted assets suffered significant losses.
However, if you’ve made deductible and non-deductible IRA contributions, you can’t choose to just withdraw the after-tax portion. Each time you take money out from individual retirement accounts, you won’t need to pay taxes on the proportion of nondeductible contributions to all IRA assets.
Creating wealth that can provide financial security for generations to come is an incredible feat, and it requires careful planning, consideration, and communication among family members. Gifting Other than transferring assets after death, the other primary way to transfer wealth is to gift portions of your estate during your lifetime.
We start with several articles on retirement planning: Why considering a client's retirement time horizon and spending flexibility could lead to more accurate (and often higher) safe withdrawal rates than the simpler "4% rule" Four unique risks retirees face when drawing down their assets, from sequence of returns risk to tax risk, and how financial (..)
In this article, well explore all the details of alternative investments, the reasons behind their growth as an investment choice, and how their tax treatment differs from traditional assets. Well also go into some potential strategies to optimize tax efficiency. What Are the Tax Strategies for Alternative Investments?
Business equipment may also be subject to depreciation over time, allowing for the deduction of the asset’s declining value over its useful life. Along with dates and locations, it’s important to document the specific business discussions that took place during the meal to substantiate the deduction. Generally, no.
Harness makes it easy to find tax and financial advisors best suited to your needs. GET STARTED What are the capital gains tax changes in 2025? For individuals with investments in assets such as stocks, real estate, and other securities, changes in the capital gains taxespecially long-term capital gainswill be particularly relevant.
Asset and Liability Matching. Good financial planning is all about asset and liability matching across time. That means you need to make sure you understand how your income and assets relate to your expenses and liabilities. A financial plan with an asset liability mismatch is likely to fail over time.
These digital tools take the complexity out of tax preparation by automatically calculating your tax liability, generating the appropriate forms for submission, and staying current with the latest tax regulations. Modern tax platforms have evolved significantly, offering sophisticated features that simplify the entire process.
Estate planning is not just for the wealthy; it is essential for anyone who wants to ensure their assets are managed and distributed according to their wishes. Whether you own an elaborate portfolio or a single family home, having a comprehensive plan in place can protect your legacy and provide peace of mind for your loved ones.
This month's edition kicks off with the news that digital estate planning platform Wealth.com has raised a whopping $30 million in Series A funding, following on the heels of Vanilla's follow-on $20M capital round just a few months ago – which on the one hand reflects the anticipated enthusiasm for solutions that can help advisors efficiently (..)
This article covers a comprehensive list of the most common forms, documents, and information needed to file taxes. If you need a cheat sheet, download our 1-page tax prep checklist. To plan your tax timeline, see our article, 2025 Tax Deadline Information for Individual Filers.
Whether you are starting a new business or evaluating your current structure, gaining a clear understanding of C Corp taxation will help you make informed decisions and optimize your tax strategy. This means the corporation files its own tax return and pays taxes on its profits at the corporate tax rate.
A DAF is an excellent way to achieve an immediate tax deduction without feeling obligated to give an entire gift at once. With a DAF, you contribute assets — cash, real estate, stock, even cryptocurrency — to a fund you establish through a custodial account, which then becomes a charitable account you personally control.
By exploring these nuances, you can better appreciate the tax advantages and responsibilities that come with running a Co-op. Understanding Co-op Taxes Key Tax Deductions and Credits Taxplanning tips for a Co-op Final Thoughts on Understanding Co-op Taxes Partner with Harness for Expert Tax Support What Is a Cooperative (Co-op)?
Whether you are contemplating forming an LP or already operate one, gaining clarity on tax matters can optimize your financial outcomes and ensure compliance with state and federal regulations. Identifying and leveraging these opportunities is a vital part of effective taxplanning.
It serves as a summary of the businesss financial activity but does not calculate tax liability. This document details each partners share of the partnerships income, deductions, and credits. Partners use the information on Schedule K-1 to report their share on their individual tax returns.
It serves as a summary of the businesss financial activity but does not calculate tax liability. This document details each partners share of the partnerships income, deductions, and credits. Partners use the information on Schedule K-1 to report their share on their individual tax returns.
Asset management Connecting investors to what matters most, so they can achieve their goals and make confident decisions. That matters because inheritance, of course, translates to investable assets. trillion in investable assets by 2030, which balloons to $70 trillion in investable assets by 2045.* Seeing the gap.
The documentation just isn’t typically necessary in the regular course of business. CPA or tax advisor A CPA can help analyze the tax implications of different deal structures and your possible tax liability under different scenarios. Consulting a personal tax advisor is critical before completing the transaction.
Expertise in TaxPlanning & Compliance: A CPA can help you identify tax-saving opportunities and help keep your clients in compliance with tax laws, reducing the risk of costly penalties and fees. This can allow you both to work together to come up with solutions before tax season.
However, if the investment is sold before the three-year mark, the standard tax rate would apply, and the manager would need to pay tax on their carried interest. K-1 forms are reported on an individual’s tax return. It’s crucial to accurately calculate the cost basis in order to report capital gains taxes correctly.
Starting in 2024, individuals who left assets in a Roth employer plan won’t be subject to mandatory distributions during their life. As with any financial decision, there are pros and cons to leaving money in an employer plan vs rolling it over. Planning for change. The Secure Act 2.0 At the very least, the Secure Act 2.0
presidential election, we have grappled with the lack of clarity regarding the details of new tax legislation. The outcome of the tax reform debate is likely to impact how we advise clients on taxplanning, estate planning and a host of other topics. Since last year’s U.S. Those conditions do not exist today.
Understanding LLC Taxes Key Tax Deductions and Credits Common Tax Deductions for an LLC TaxPlanning Tips for an LLC Final Thoughts on Understanding LLC Taxes Partner with Harness for Expert Tax Support What Is a Limited Liability Company (LLC)?
Understanding LLC Taxes Key Tax Deductions and Credits Common Tax Deductions for an LLC TaxPlanning Tips for an LLC Final Thoughts on Understanding LLC Taxes Partner with Harness for Expert Tax Support What Is a Limited Liability Company (LLC)?
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