What Is a Tax Planning Strategy?
A tax planning strategy is an action that a business or an individual can take to lower their tax burden. There are many different types of tax strategies. Some take advantage of tax deductions to lower taxable income, some use tax credits to recude tax liability, and others (such as entity and compnsation optimization) change one of the many factors that affect taxation.
2021 Deferred Compensation Plan (Individual)
A nonqualified deferred compensation (NQDC) plan is an agreement between you and your employer to pay some portion of your compensation in the future. NQDC plans provide employers and employees with different tax benefits than...
2021 Compensation Optimization Details
2021 Compensation Optimization Details Compensation optimization is the process of reviewing your total “compensation” needs and determining whether changing business entities would help better distribute the compensation across various types of income. Certain...
2022 Sale of Home Exclusion
2022 Sale of Home Exclusion Details Taxpayers can exclude up to $500,000 of capital gains from any gains on the sale of their primary residence if they meet specific requirements. To qualify the seller must have lived in the home as their primary residence for at...
2022 American Opportunity Credit
2022 American Opportunity Credit Details American Opportunity Credit reduces income tax dollar for dollar. American Opportunity Credit reduces your taxes by up to $2,500 per student for the education expenses of college students pursuing a degree during their...
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