Tax Planning & Strategy
Proactive tax planning to minimize your lifetime tax burden. Year-round strategies for business owners, investors, and high-income individuals—not just April filing.
The difference between tax preparation and tax planning is profound—and expensive if you only do the former. Tax preparation looks backward, recording what already happened. Tax planning looks forward, making strategic decisions to minimize taxes while you still can. By April 15, your tax liability is largely fixed. By December 31, most opportunities have expired. Strategic tax planning throughout the year—when you can still act—is how savvy individuals and businesses legally reduce their tax burden by thousands or tens of thousands annually.
Why Tax Planning Matters
April (Too Late)
- Calculate what you owe
- No options remain
- Outcome already fixed
Year-Round Planning
- Make decisions that reduce taxes
- Multiple strategies available
- Save thousands annually
Example: Business owner in April owes $40K. With Sept planning (equipment purchase, retirement, prepaid expenses) → saves $15K+.
Income Timing Strategies
| Strategy | When to Use |
|---|---|
| Defer Income | Expect lower income/rates next year |
| Accelerate Income | Expect higher rates next year |
Who Has Timing Control:
- Business owners: billing, project completion, bonuses
- Investors: capital gains, Roth conversions, options
- Employees: bonus timing, stock option exercises
Retirement Account Optimization
| Account Type | Tax Benefit |
|---|---|
| Traditional 401(k)/IRA | Reduces current taxes |
| Roth 401(k)/IRA | Reduces future taxes |
| SEP-IRA | Up to $69K deduction |
| Solo 401(k) | Up to $69K ($76.5K if 50+) |
| Defined Benefit | $200K+ deductions possible |
Optimal mix depends on current vs. expected future tax brackets.
Business Structure & Compensation
How you structure and pay yourself has enormous tax impact:
- Entity selection — Determines tax treatment, deductions, SE tax
- S-Corp salary/distribution split — Save thousands in SE tax
- Fringe benefits — Health insurance, retirement, expense plans
- Family employment — Shift income to lower brackets
Investment Tax Planning
| Strategy | Benefit |
|---|---|
| Tax-Loss Harvesting | Offset gains; maintain exposure |
| Asset Location | Tax-inefficient in retirement accts |
| Donate Appreciated Assets | Avoid gains + full deduction |
| Opportunity Zones | Defer and reduce gains |
Estate & Gift Tax Planning
| 2026 Limits | Amount |
|---|---|
| Estate Tax Exemption | $13.61 million |
| Annual Gift Exclusion | $18,000/recipient |
Advanced Strategies:
- Dynasty trusts
- GRATs (Grantor Retained Annuity Trusts)
- Family LLCs
- Charitable remainder trusts
⚠️ Exemption scheduled to drop after 2025—act now.
Our Planning Process
- 1. Initial Analysis — Review situation, returns, goals
- 2. Strategy Development — Identify opportunities across all areas
- 3. Implementation — Action items with deadlines
- 4. Quarterly Monitoring — Stay on track, adapt to changes
- 5. Year-End Review — November check captures final opportunities
✓ This approach consistently delivers five-figure savings.
Pro Tips
Start Planning Mid-Year
The best time to plan is June-September when you have visibility into annual income but time to act. Don't wait until December.
Think Multi-Year
A strategy that saves taxes this year might cost more over time. We model scenarios across multiple years for optimal results.
Document Everything
Many strategies require contemporaneous documentation. We help you maintain records that withstand IRS scrutiny.
Frequently Asked Questions
Need Help With Your Taxes?
Our DFW CPAs specialize in helping individuals and businesses minimize their tax burden. Schedule a free consultation to discuss your specific situation.