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Tax planning: Why do I need to do it?

| Oct 2, 2018 | Tax Planning |

Taxes, taxes and more taxes. Whether one resides in New Jersey or elsewhere, taxes are a big part of life. The only way to escape taxes is through death, but even then one’s family may be left holding the bag, so to speak. This is where tax planning comes into play. With a carefully thought-out tax plan in place, one may be able to reduce one’s tax liability, which can be beneficial now and into the future.

Why consider tax planning? An individual might consider tax planning as a way to ensure tax efficiency. No one wants to pay more in taxes than they have to. Everyone would rather they had more money going into their businesses or retirement accounts. No one wants to leave their family members left with a significant tax burden.

With the year quickly coming to a close, there are a number of things one can do to improve his or her tax situation. A few of them include offsetting losses by reviewing taxable investments, reviewing “carryforwards” to offset capital gains distributions and tax-loss harvesting by selling loser investments. Of course, there are many other things one might be able to do. Legal counsel will be able to offer suggestions after reviewing the finer details of one’s current tax situation.

Taxes are a burden in life and something New Jersey residents cannot avoid paying. This does not mean that one cannot take steps to improve one’s tax liability. Legal counsel can help make one’s tax burdens lighter with tax planning.