Since I changed my program to do reviews of tax returns up front for free, I’ve seen a lot of different strategies (or lack thereof).
I’ve been doing this a lot of years now. I think I might have been the first to come up with the term “Tax Strategist.” And while I wasn’t the first to talk about tax loopholes, I was the first person to get it trademarked and then registered. (Diane Kennedy’s Tax Loopholes® ) So, it’s interesting to go back and look at the differences in the plans I see come in now.
It’s obvious that people are more aware of business structures than they used to be. I used to see Sole Proprietorships all the time, now I rarely do. But I do see people using structures in the wrong way. I’ve seen appreciating assets put in C Corporations and I’ve seen people not properly putting their assets in any structures. (They form them, but then never get the guidance on the next steps.)
The strategy is important, but I think an even more important part is implementing it and then reporting it on the tax return. If you miss those steps, you might as well not gone to the expense and trouble to set up the structure.