Tax Analysis & Preparation
The right investments are one piece of the puzzle. Another major piece that is often overlooked by advisors is the tax implications. We monitor not only asset allocation, but also asset location.
Throughout the year, we analyze any events that occur in our clients’ lives to understand the tax impact and effect. We help our clients avoid underpayment penalties and we recommend projected estimated payments, if necessary.
Would it be better to sell this stock this year and recognize gain, or next year? Should we exercise these stock options now, or wait until next year? If I elect a Roth Conversion, what is the tax impact? What is the appropriate tax vehicle for college savings? Should I hold this investment in my Roth IRA or Traditional IRA? Those questions are thoroughly researched and discussed.
We understand your need for flexibility so we offer our tax preparation as a standalone service as well. Our prices are very competitive and our knowledge is backed by years of experience. Whether you are a corporate executive with stock options, a retiree with required minimum distributions, a sole proprietor with Sch. C activity, or an investor with multiple K-1’s, we have prepared it before.
The transition from your existing accountant to us is seamless and our process for those who have always been a self-preparer is very convenient. Contact us to learn more about our prices that have been proven to beat our competitors by 20% to 40%.
Lets discuss a situation that our founder encountered in the past.
A client called him about her February non-qualified stock options that were expiring in a few months. This was planned for so he walked her through her tax projection. He explained that any further income that year would be taxed at the highest marginal rate of 39.6%.
However, if she waited until January to exercise the options then she would be subject to AMT. Therefore, she could exercise those options and only pay federal tax at a 28% rate on that income.
They discussed their confidence that the stock price would not materially move since this company was a value stock and volatility was low.
It was not a direct 11.6% savings since she would have itemized her state tax incurred in the previous year, but it still saved her thousands of tax dollars.