What is tax planning?

Most people view taxes simply as a tax return.  That is, reporting to the government information that has already happened.  They also view their tax preparation fees as an expense.   Those same people miss the opportunity to take part in tax planning.  Tax planning does not apply for everyone- it is easier if you have more moving parts so individuals with rental properties, investments, etc are good candidates.  Business owners are also typically some of the best candidates.

What does tax planning involve?  Projecting tax scenarios in order to minimize your tax liability before the year is out.  You can optimize your situation by choosing the best scenario given your current and projected situations.  In the next two videos I'll go in to more detail on tax planning for individuals and business owners.