Tax Planning and Preparation

Have you considered paying yourself more out of your business?

In some cases, it actually might make more sense to pay yourself less — but bring home more at the same time. It all comes down to having the right plan in place.

If you’re not clear on how you could accomplish that, then reading this page right now could be very important.

 

We have other blog posts and pages about entity structure, but that’s just one aspect of a proper plan for growing the tax-profitability of your business.

When we meet with a business owner, we often wear many hats — CFO, Marketing Advisor, COO, etc. — truly whatever fits the needs of our small business owner client most precisely. Because business owners can make rash decisions in times of perceived crisis (like during “tax season”) — and they often have unforeseen complications down the road.

Which is why it’s critical that we take a look at how things are set up for you and your business before the tax preparation process. When we take the time together to take a clear-eyed look at your accounting reports, and plan ahead for the best, most tax efficient outcome for your business, then you can have the confidence that you are building in a financially smart way.

And every time new tax code legislation comes through, it opens up new opportunities for businesses to save on their bottom line, as it relates to tax, and other aspects of your financial picture.

Frankly, we’d like to avoid all of the unnecessary expenses and taxes which so many businesses end up paying, simply because they didn’t plan ahead of time.

But we won’t know what the best setup for your business would be, until we talk.

Consider these questions …

  • Am I proactively planning to deal with tax law changes?
  • Have I determined my financial goals — and how taxes will affect them?
  • Will I maximize my tax-free earnings in retirement (and before retirement)?
  • Do I have an exit plan for my business — and is it written down?

Again, all of these issues always seem “procrastinate-able” on the front end … but if you don’t have a good answer to more than a couple of the above questions, you might be cruising for a financial bruising.

Let Us Help:

Do HSA Funds Expire at the End of the Year? Answers from a Tracy Tax Pro

Quick Answer: Health Savings Account (HSA) funds never expire at the end of the year, so there's no use-it-or-lose-it deadline to beat. Your entire balance rolls over automatically on January 1 because you own the custodial account outright.Key TakeawaysYour HSA...

How To Donate Appreciated Stock to Avoid Capital Gains Tax For Tracy Investors

Quick Answer: Donating your long-term appreciated stock to a qualified charity removes federal and state capital gains taxes and secures an itemized tax deduction for the full fair market value of the shares. To preserve these tax benefits, execute an in-kind DTC...

What Taxes Do You Pay in Retirement That Most Tracy Retirees Overlook?

Quick Answer: The most frequently overlooked retirement tax traps are taxable Social Security benefits, Medicare IRMAA surcharges, and forced Required Minimum Distribution (RMD) tax pileups. These hidden costs occur when mandatory RMDs and uncoordinated pre-tax...

Last Minute Tips for Tracy Taxpayers to File By Extended Tax Day

Quick Answer: To meet the October 15 deadline, pull missing tax records directly from your IRS Online Account and verify your identity using your prior-year AGI or IP PIN. Submitting your e-file before midnight locks in your official timestamp and stops late-filing...

How Much Do Independent Contractors Pay In Taxes? Taxpath’s Tax Strategies for 1099 Contractors

Quick Answer: How much do independent contractors pay in taxes? Independent contractors typically pay between 25% and 35% of their net profit in total taxes, covering federal and state income brackets alongside the mandatory 15.3% self-employment tax. Because 1099...

Do You Have to Pay Taxes on PayPal, Venmo, or Cash App Payments For Your Tracy Side Hustle?

Quick Answer: You have to pay income tax on any net profit earned through PayPal, Venmo, or Cash App, regardless of whether the platform issues you an official Form 1099-K. However, the IRS only taxes true financial gain, meaning personal bill splits, gift...

What’s the Best Time for Tracy Retirees To Execute Retirement Planning Tax Strategies?

Quick Answer: Retirees should execute retirement planning tax strategies during their gap years, which are the temporary low-income window after you stop full-time work but before Social Security benefits and Required Minimum Distributions (RMDs) begin. This...

What Is the Tax Extension Date For Tracy Extended Filers?

Quick Answer: For individual taxpayers, the federal deadline to file your extended tax return (Form 1040) is October 15. Or September 15, if you're waiting on a business Schedule K-1. Just remember that an extension grants extra time to file your paperwork, not...

What Are the IRS Rules on Claiming Dependents After Divorce For Tracy Parents?

Quick Answer:  The IRS automatically gives the dependent tax claim to the parent the child slept under the same roof with for at least 183 nights. A noncustodial parent can only claim the child if the custodial parent officially signs IRS Form 8332 to pass over...

How Does the SALT Deduction Work For Tracy High Earners?

Quick Answer: In 2026, the State and Local Tax (SALT) deduction allows you to write off up to $40,400 on Schedule A, but a Modified Adjusted Gross Income (MAGI) over $505,000 triggers a 30% phaseout that reduces the cap down to a $10,000 floor. To legally bypass...

Ready to come in for an appointment?

Click here to schedule a time to meet with us. We will NOT make dealing with a tax professional as painful as it’s been in the past!

Contact Us