Smart Tax Planning: Tax Tips for Investors and Business Owners

America’s least favorite day is quickly approaching in a little over two weeks.  Millions scramble to frantically count their beans while the oppressive Eye of ‘Providence’ lords over them.  

April 15 may usher in the Spring with all its good vibes, longer days, and the smell of outdoor barbecues with freshly cut grass.  But it also marks a cumulative day of stress with the unholy combination of a strict deadline with complex accounting that exposes the consequences of last year’s financial decisions.  

The instinct is to bum rush the problem with brute force intensity, outsourcing as much work as possible to caffeine tweaked accountants.  Mistakes are made, and tempers are bound to flare.  Let 2025 be the year you get ahead of the problem.  

Good tax planning is a year-long process and Ben and Brent discuss what this entails.  They highlight several common areas where they see mistakes so you can avoid them.  The overarching message is to not rely on your accountant, accounting software, and definitely not the IRS to catch errors on your return.  

While tax calculations are formulaic, the results are only as accurate as the input.  The art of tax planning involves optimizing and confirming accuracy of the inputs over all relevant tax years.  It's a great way your financial advisor can add value! 

Topics discussed include:

• What is a 1040? Components of a tax return? 
• Planning opportunities along the tax return:
  • Maximizing above the line deductions, retirement plans, corporate benefits
  • Business deductions, strategic planning done to reduce taxable income
  • Back door Roth IRA - Roth 
  • Capital gains - which bracket are you in? Strategic ways to use gains/losses
  • Being aware of itemized vs standard deduction, can you “bunch”? 
  • Estimated payments, how does it work and opportunities to take advantage
  • Borrowing from appreciated assets to defer tax - like the billionaires 
• What are some of the common elements we see in client tax returns that are “high risk”?
  • Don’t assume the tax return tells the whole story 
    • Back door Roth IRA’s - easily reported incorrectly 
    • RSU’s - underwithholding issues and basis reporting issues
    • QCD’s incorrectly reported
    • Things that don’t even generate a tax form (estimated payments)
• Looking to the future - TCJA expiration in 2026 and possible tax outcomes 

 

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About Your Hosts 

 

Ben Jones 

Managing Director, National Wealth Management Group 

www.nwmgadvisors.com  

Sign up for Ben’s newsletter at www.karastick.com  

Follow him on X @thekaratstick 

https://www.linkedin.com/in/ben-nwmg/ 

 

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Brent Gargano, CFPⓇ 

Founder & Advisor, Infinite Wealth Planning  

www.infinitewealthplanning.com 

linkedin.com/in/brent-gargano-cfp®-2067b573 

Read Brent's latest newsletter --> https://40221980.hs-sites.com/infinite-wealth-plannings-february-newsletter-is-live?ecid=&utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-_Efdxwvp3oso7SBWpKxOU7Rxa0wru_6V-AGrl_LgK7QRQR8XQhfQHlOLqA4xUUUKt9_Phs

Sign Up For Brent's Newsletter -- > https://share.hsforms.com/1maVO0YZ0T3uIA80kyeGi1Any3h8

  

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Editor

 

Trevor Gargano

Email: Trevor@trevorgargano.com

Linkedin: https://www.linkedin.com/in/trevor-gargano-72727b67/

Website: TheDigitalQuarterback.com

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Disclosure: 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.  

Advisors associated with National Wealth Management Group may be either (1) registered representatives with, and securities offered through LPL Financial, Member FINRA/SIPC, and investment advisor representatives of National Wealth Management Group; or (2) solely investment advisor representatives of National Wealth Management Group, and not affiliated with LPL Financial. Investment advice offered through National Wealth Management Group, a registered investment advisor and separate entity from LPL Financial. 

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. 

The information presented is for educational and informational purposes only and is not intended as a recommendation or specific advice.