Who benefits the most from tax planning?

Our tax laws provide more opportunity to some people than others. I find that some people can save tens of thousands of dollars with little effort through active tax planning while others might save only a thousand dollars or so. Obviously these high impact people are the ones that tax planners like me want to seek out to focus the offer of our services. Considering all types of taxes collectively, these are the types of people who have the greatest potential to reduce or eliminate taxes:

  • Small Business owners
  • Independent contractors or consultants who are paid with a 1099-MISC
  • Professionals – physicians, accountants, attorneys*, engineers, architects
  • Software developers
  • Insurance agents, financial advisors, real estate agents
  • Long term investors
  • People with charitable interests
  • Executives approaching retirement

*I choose to market my services primarily to attorneys mostly as a matter of personal comfort and opportunities for exposure. The approach is to identify the types and amount of taxes being paid and projected in the future, then assemble a wide range of possible strategies and their impact. Then the  work focuses on analysing and narrowing down the possibilities to finally result in a specific action plan with identifiable and measurable results. The work is intensive and takes months to years. The cost, typically thousands of dollars in total, can be expected to bring huge financial returns, typically 300% to well above 1,000% return on investment. For that reason, I often refer to tax planning as the most profitable part of financial planning and accounting.


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