Tax planning

Tax planning is a scheduled meeting, held before December 31, where we run your numbers for the current year and put the decisions in writing. It is for the self employed person who was surprised by last April’s bill, the business owner wondering about becoming an S corporation, the couple selling a house in Reseda or Northridge, and the person a year or two from retirement who wants to know what the withdrawals will cost.

It is not a vague promise of savings. You bring year to date figures, we project the tax, and you leave with a written summary: what you will likely owe, what you can still change, and the date each change has to happen by. Some years the answer is that there is nothing to do. We tell you that too.

Meetings are held at our office on Tampa Ave in Reseda or by phone. Call (818) 401-7468 to schedule one before the year closes.

What is included in tax planning?

• A mid year or year end meeting with a projection of your federal and California tax
• Estimated payment calculations for the IRS and the Franchise Tax Board, with the quarterly due dates
• Retirement contribution planning: SEP IRA, Solo 401(k), and traditional and Roth IRA limits and deadlines
• Entity structure review: sole proprietor versus S corporation, with the payroll cost counted
• California specific items: the LLC annual tax and fee, and the pass through entity elective tax election
• Planning for a life event: a home sale, a new business, an inheritance, or retirement
• A written summary of every recommendation and its deadline

What should I bring?

• Your most recent federal and California return
• Year to date income and expense figures, or your bookkeeping file through the latest month
• Any purchase or sale you are planning before December 31: equipment, a vehicle, a property
• Retirement account statements
• Entity documents if you own a business: articles, operating agreement, S election letter

How do fees work?

Planning fees are based on how many entities and situations the meeting has to cover and the condition of the figures you bring. The fee is never tied to a refund or to the amount of tax a decision might save. You receive a written quote before the meeting is scheduled. If the meeting uncovers work beyond its scope, such as an unfiled year or a return that needs amending, we tell you and quote it separately before continuing. See the fees page.

What happens after the meeting?

You get the written summary, and each recommendation on it has a deadline. If a decision needs follow up, such as filing an S election or opening a Solo 401(k) before December 31, the summary says who does it and by when. The plan then feeds directly into small business tax preparation or individual tax preparation in the spring, so the return reflects decisions already made instead of discoveries made in April.

Why before December 31?

Because most of the levers close on that date. Retirement plan setup, equipment purchases, owner pay for an S corporation, and estimated payments all have to happen inside the tax year to count on that year’s return. The IRA contribution is the main exception; it can wait until April. A June meeting and a November meeting is the pattern that works. Clients from across the Valley meet us at our Reseda office on Tampa Ave.