So what are the strategies that can be put into place to really look at planning? So you know, we are recording this now just a few days before 2017, if I were now saying, let me go ahead and get someone who can help me plan so that 2017 can be my best year ever and I can save as much as I can in terms of taxes to put more into my pocket. What would be the strategies that I would be looking at, at putting into place?
You definitely would want to review your entity classification and see if that’s the most tax efficient entity for you to be operating under. Fortunately, with entity selection, you have the opportunity to make a late elections, so we’ll be making late elections for new clients over the next three months that are currently set up as a certain type of entity and maybe need to be elect to be taxed as a different type of entity. That’s something you could do after the first of the year, if you have to.
Setting up a retirement plan, depending on how many people you have working for you, what type of entity you are–sometimes that can be done after the first year. During the year, for 2017 you want to look at—there’s medical expense reimbursement plan. Does that make sense for me? Do I need to set up an accountability plan?
What, what type of, pension plan do I have? I like to say, if the only thing I tell you is a pension plan, I’m really not doing a good job because you can call Fidelity, or any broker and they’re going to say you need a 401(K), whether you need one or not. They’re going to tell you you need one. So that’s typically the last thing we’ll talk to a client about. Sometimes it’s a defined benefit plan. There’s a host of different ways where people can put away a lot more money. So we really look at what’s going on, and what we can do for the client. Are you supporting your parents? How can we make those payments, when you’re supporting your parents, how do we make those payments tax deductible? And I’m not talking about paying them a salary.
What can you do? Do you have real estate? Is your real estate properly structured? Do you know, maybe you’ll get sued. Are you using a management company? What are you doing? So we look at a lot of things and come up with a total number of dollars for deductions and tax savings.
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