Tax Planning

During these dog days of Summer, the last thing on many people’s minds is taxes and tax planning. However, as we move into August and have the 4th quarter in sight, it just might be the appropriate time for you to sit down with your tax advisor and take a look at where you stand through the midpoint of the year. You might be asking yourself why, or do I really need to take the time to do this? For many of you, the answer would be no. If your taxes are covered by withholding and your financial position remains unchanged, then this planning is probably unnecessary. However, there is a large segment out there who can benefit from this planning in order to avoid any tax season surprises and have the ability to maximize their 2010 tax position.

If you have any of the following characteristics, you might want to sit down with your tax advisor and take inventory of where you stand for the year:
• Business Owners
• Individuals paying estimated taxes
• Substantial increase or decrease in taxable income including wages, interest, dividends, business profits, etc
• Substantial increase or decrease in itemized deductions
• Recent move to an assisted living home
• Receiving a Severance package
• Distribution of IRA or Pension Funds that are new to you
• Started a new home business
• Large capital gains/losses
• Considering a Roth IRA conversion

The above are just a few of many reasons to sit down with your tax advisor. The key is to take time to think about your financial and tax position now while there is still time in the year to make the adjustments necessary to help you avoid tax seasons surprises and plan accordingly.

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