See the big picture – A holistic approach to tax planning

Description

Abstract: For many people, tax planning is something they begin to think about in December. During the year, they concentrate on running their business and managing their investments. Then, late in the year, they make a series of last-minute moves — such as accelerating expenses, deferring income or shifting income to family members — in an effort to reduce their tax bills. By failing to start planning early and look at the big picture, however, these taxpayers often miss opportunities to increase their overall wealth. This article explores a holistic approach that begins well before year end and considers the overall impact of various tax, business and financial planning decisions and identifies the strategies that are most likely to enhance net worth. (Updated 7/7/11)