Year End Tango with Taxes

Year End Tango with Taxes

We love the image of Tango with Taxes, because the Tango is intricate.  There are very specific steps you must take and they must coordinate with your partner and the beat of the music.  Year-end tax planning is intricate, too.  There are very specific steps you must take and they need to be coordinated with both your cash flow and goals, along with the IRS.  The Tango is also intimate, and, let’s face it, money and taxes are too!

To accomplish this dance, it will take between two to three hours to do it well, but even if you spent 20 minutes reviewing the potential tax strategies and possible moves, it could save you tax money.  What we REALLY love about year-end tax planning (actually, all tax planning) is that we are getting the government to help us fund our goals.  We like to think of it as if we are getting a Black Friday discount on reaching our goals.  Hey, by contributing to your tax deductible retirement account, you captured a 30% discount on retirement funded by the government!  Now that’s a tax step worth taking!

You can do a review of the best tax steps by simply checking out our “Tax Savings Checklist” in our online classroom.  It was designed in conjunction with John McCarthy, CPA who offers a great discount to our club members and clients for year-end tax projections and tax preparation.  The form looks at various information from a tax projection and says “if you have this situation, here’s a possible tax strategy that you may be able to use.”

For example, if you have capital gains in an investment and usually make
year-end charitable contributions, that’s an indicator that you could use
the strategy of gifting highly appreciated, low basis stock. You can replace the investment with your held onto cash and remove the tax burden of the capital gain. Another strategy applies when you’re close to being able to deduct medical expenses from gross income, which is an indicator that you may want to get that dental work and glasses this year, so you get some deduction for your adjusted gross income.

Last year we produced a chart that you can use to look up your goals and find the right tax strategy.  This year, we created a chart (found in your online classroom) that you can use by looking up information on your tax return, which will give you steps you can take RIGHT NOW!

As we mentioned, you can get a tax projection from John McCarthy Tax Preparation service for just $100.  He will then look at the form and send you and your coach the strategies he thinks you should look at.  To get started, send us an email by clicking HERE. Of course, if you like doing your own taxes, we also have the documents you need to do your own projection (you can work with your coach on the strategies as a club member). In either case, let’s get our Tango on!

Fiscal Fitness Clubs members can access the pre-work, class video, and tools through the online classroom , as well as help from a financial coach or by jumping into our monthly Coaching Hours the 3rd Wednesday of the month. 

Interested in becoming a member of Fiscal Fitness Clubs?  Send us an email or set up a call HERE.


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