Tax Planning

“Anyone may arrange his affairs so that his taxes shall be as low as possible.”  – Learned Hand, Tax Court Judge, 1934

Understanding your options will help you take advantage of every break the government offers and protect against mistakes or future law changes that increase your liability, so that creeping tax concerns don’t take up all your time and attention and you can focus on what matters.

Qualified Plans

401(k)s, Defined Benefits, Profit Sharing, and Traditional/Roth IRAs are examples of Qualified Plans available to employers and business owners.  Properly designed and managed, these powerful strategies maximize tax-advantaged wealth accumulation for owners, recognize value of key employees, and optimize retirement readiness for participants.

Life Insurance Retirement Plans (LIRP)

A LIRP is a life insurance policy designed to take advantage of the special tax treatment of cash values.  Properly designed, acquired, and managed, a LIRP will provide tax-free cash flow that you may want one day if you sell your company.  Roth IRAs can fit this bill, but the IRS restricts how much you can contribute.  If your income is over a certain limit, you are disqualified from saving in a Roth all together. 

Captive Insurance Companies

Owning your own insurance company can reduce certain types of property and casualty insurance costs by 20% to 30%.  In addition, you can get insurance coverage for risks where commercial insurance is not generally available.  When you learn that premiums for this coverage are tax deductible to your business and the idea of forming an insurance company that you own starts to become very attractive.

Cost Segregation

A cost segregation study is a federal income tax tool that uses shorter recovery periods to accelerate the return on capital from your investment in property.  It can uncover tax savings and increase cash flow by reclassification and depreciation of certain specific components of commercial buildings.

Charitable Gift Planning

No matter what drives you to give, philanthropic planning connects your tax, estate, and financial plans to whatever matters most to you.  It is important to understand the differences between donor-advised funds, private family foundations, charitable lead and remainder trusts, and charitable gift annuities.  It is important to have to have good administration that ensures compliance with laws and regulations.