Tax Planning

Tax Planning for Locals and Foreigners taxpayers

Making the most out of your money starts with recognizing all the ways taxes can impact your financial future. Whether you’re focused on your own retirement, a loved one’s education, or the best way to pass on your wealth to your heirs, any sound, forward-looking plan to maximize your wealth needs to take into account taxes' bite.

Just as the rise and fall of interest rates can ripple throughout your investment and wealth management plans, so too can change in tax policy. Safety Tax Advisor is trained and experienced in crafting wealth management strategies that plan for its impact, keeping you on track with your broader vision.

Let's discuss your case! We are sure that our Tax Advisors will help you anticipate the impact of taxes in all areas of your life.

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Investment strategies you should consider

While tax rules and rates may change over time, the value of keeping taxes in mind when making investment decisions does not. The reason? Taxes can reduce your investment returns from year-to-year, potentially jeopardizing your long-term goals.

Why SAFETY TAX?

Our experience covers the whole realm of tax associated accounting, and business advisory, starting from compliance to growth and tax-effective strategies

1. Contribute to tax-efficient accounts

Take advantage of tax-efficient retirement accounts for which you're eligible to help reduce current and/or future taxes.

2. Diversify your account types

Using a combination of investment account types lets you mix and match income sources in retirement to help minimize your taxes.

3. Choose tax-efficient investments

Specific investments can carry tax benefits, as well. For instance, income earned from municipal bonds is generally tax-free at the federal level and, in some cases, at the state and local levels, too.

4. Match investments with the right account type

5. Hold investments longer to avoid unnecessary capital gains

It is rarely worth holding on to a stock you are ready to sell simply to avoid taxes — with one exception. While gains recognized on stocks held for a year or less are taxed at ordinary income rates, gains recognized on stocks held longer than a year are taxed at the long-term capital gains rate — currently 15% for most investors and 20% for the highest earners. As a result, it may make sense to delay selling appreciated stocks until they qualify for long-term capital gains treatment. Again, always check with your tax advisors.

6. Harvest losses to offset gains

Using any investment losses you may have to offset your investment gains each year — a technique called "tax-loss harvesting" — can help reduce your income tax liability. And, if your investment losses exceed your gains, you can use them to offset up to $3,000 of earned income each year as well, with additional losses carried forward to future tax years. For higher-earning investors, a higher long-term capital gains tax rate plus the additional net investment income tax of 3.8% that became effective in 2013 can make "tax-loss harvesting" even more valuable.