Tag: tax strategies

Tax planning is not just a task for the end of the year; it’s a continuous process that can significantly impact your financial health. At Lucia & Co. CPAs, we emphasize the importance of understanding tax strategies to ensure you’re making the most of your money. Dive into this comprehensive guide to explore key tax planning strategies and concepts that can help you optimize your financial situation. 1. Understand Your Tax Bracket What are tax brackets? Tax brackets are foundational pillars of the U.S. progressive tax system. Your taxable income, which is your total income minus allowa…

Proactive tax planning is a strategy I strongly advocate for as a CPA, having observed many small business owners rely on outdated ‘reactive’ tax planning. This traditional approach involves monitoring sales and expenses throughout the year, and then using these figures to determine tax liabilities at year-end, often leading to missed opportunities. Reactive tax planning tends to be a passive process, where business owners only consider their tax situation when the filing deadline approaches. This can result in a scramble to gather documentation and make last-minute financial decisions, whi…