There are just 18 days left… are you ready? I’m not talking about Christmas shopping. I’m talking about the business days you have left to do year-end tax planning and put that plan in place.
Every year there are always a handful of people I talk to who are just hanging in indecision. Should they act or wait to put their tax plan in place? If they wait until next year (Jan) to implement their plan, they will save money in 2011. But if they implement NOW they’ll save money in 2010 as well and get a nice refund.
Here’s a real life example:
One couple has a business that is in the wrong business structure. They are running an operating business that has a lot of inherent risk inside a structure that also has assets. That’s a bad move from asset protection. If they get a lawsuit, everything inside that company will be at risk.
But in their case they also are paying extra taxes because of the wrong structure. Luckily, we had a meeting about it last week and there is still time to make a change. We have to move fast, though, because it needs to get done before year-end. They’re too late to set up a new structure in most states, so they will be buying a shelf company. A shelf company is a company that has been set up in advance for situations just like this. In this case, the shelf company had not operated before, which means there won’t be any lingering liability. (Be careful of buying companies that have been operating. There could be additional liability.)
So they have a choice – act now and save $25,000. Wait 3 weeks and give up that savings this year.
If you’re waiting until it’s time to file your return to worry about taxes, you’ve waited too long.
Find out more about how we save our clients on their taxes with our full service tax firm, US TaxAid Services. You can contact Thomas for more information at 866.829.2368, ext 2 or via email at Thomas@USTaxAid.com.
That’s probably a pretty easy choice, when you see it that clearly. But what about your own tax plan? Is there money you are leaving on the table this year? NOW is the time to act!