Being proactive is the act of creating or controlling a situation by causing something to happen, rather than responding to it after it has happened. In the tax world this means tax planning to get your tax burden as low as possible.
I often come across people who think they either don’t make enough money to have a tax strategy or that it will not make a difference. The reason people like Warren Buffet pay attention to taxes is because it affects their cash flow. If tax planning can help someone who brings in billions a year save money, then those same strategies can be used for anyone. The key is to find the right strategy for you whether you own a business or are an employee. The strategies don’t change just how they are implemented.
The other question becomes why someone like Warren Buffet would care if he saved money or not? He cares for the same reason you or I do. If you can get gas for 10 cents cheaper per gallon, that gives you more money that could be spent on something else such as food, charitable donations or even putting it in the savings to eventually bring you more money.
We spend more money on taxes than any other expense, including housing, clothing, and food. Even if your only source of income is Social Security and you do not pay income tax, all the other taxes such as gasoline tax, sales tax, and even the mandatory fees associated with getting a dog license are taxes you pay and it all adds up to more than any other expense you have.
Give us a call or schedule an appointment today to find out which tax strategies would help you.