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Tax planning-what are the benefits of tax planning?

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Tax planning-what are the benefits of tax planning?
Tax Planning is all about putting your hard earned money to YOUR good use instead of all going to the government. It doesn't mean not paying your taxes, it just means being smart about where your placing your money to acquire maximum benefits to you and your future livelihood.

If you're a business owner, even more attention needs to be paid to tax planning with the below points being included in your planning.

• Entity Structure Planning - Create the optimal entity structure for your business and you personally to maximize your tax benefits and legal asset protection benefits.

• Compensation and Benefit Planning - Develop strategies that meet your personal and business short and long goals and objectives. Its really about minimizing taxes and out of pocket expenses paid with after tax dollars. The goal is maximize your income and the amount available to the business by minimizing your taxes across the board.

• Maximize Advanced Retirement Planning and Income Deferral Opportunities - Business owners must annually capitalize on techniques to maximize monies and continued income streams available for life after the business.

• Utilize Succession, Exit Strategy, and Estate Planning Opportunities - Remember, when you exit your business, it will be a taxable event. Develop a plan to minimize taxes on the transfer to ensure you walk away with as much money as possible.

• Avoid or Eliminate Questionable or "Grey Area" Tax Planning Strategies to reduce Audit Risk - All your tax planning strategies should be supported by the black and white language of the IRS Tax Code and Regulations. For the informed business owner many opportunities exist.
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Why tax planning necessiry?

Why tax planning necessiry?

It optimizes and minimizes the amount you pay to the government for taxes.

What is the difference between tax planning and tax management?

1.tax planning is a wider term and tax management is narrow term which is a part of tax planning. 2.tax planning emphasizes on tax minimization whereas, tax management is co

What are the objective of tax planning?

the following are the important objectives of Tax planning. 1. Reduction of Tax liability 2. Minimisation of litigation 3. Productive investment 4. healthy growth of e

What is the definition of tax planning?

There is no formal definitation, but basically it is putting your taxes into good use and make your taxes optimized
What are the characteristics of tax planning?

What are the characteristics of tax planning?

1. It is enforced contribution. 2. It is generally payable in money. 3. It is proportionate in character, usually based on the ability to pay. 4. It is levied on persons and

What is the Nature and scope of tax planning?

tax planning means how we make the plan for tax. we have toreduce the tax from our business & increase the profit as well.... are called tax planning.

How are supplemental executive retirement plans SERP taxed once the benefit is received?

  There are many different ways they can be set up, and many different vehicles for the funds...but generally: On set up the money put in them is NOT taxed to the employee

Is the supplemental executive retirement plans SERP taxed before the benefit is received?

Can vary from plan to plan...qualified or non-qualified is important.   This can be a very complex field, some basics:   All amounts deferred under a nonqualified deferr