Broker Check

Is tax planning important?

| January 24, 2017

Tax season is finally here. Did you sell a house, a business, or anything else? The reality is that there are a number of different tax consequences for each of these situations and to be honest no particular strategy is the perfect one. The key to successful tax planning is working with an accountant before making major decisions and understanding timing of tax consequences. A simple phone call can save you hundreds of dollars on tax preparation. The idea here is to be proactive in tax planning by thinking ahead and making strategic decisions throughout the year. LifeCycle stresses the importance of tax planning and timing annually and in the future because a sale or other decisions could put you into alternative minimum tax (AMT) or net investment income tax (NIIT) before you know it. I recommend simply calling your accountant quickly any time you are unsure about the tax consequences of a situation or investment. After all, isn't tax planning important?