Many important tax decisions happen long before a return is filed.

Changes in income, business operations, ownership structure, or major financial plans can affect your tax situation.

At Gasawneh CPA, we provide tax planning guidance designed to help individuals and businesses understand relevant tax considerations and evaluate their options before important decisions are made.

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What Is Tax Planning, and Why Does It Matter?

Tax preparation reports financial activity according to applicable filing requirements. Tax planning looks ahead.

It involves reviewing your circumstances and considering how certain decisions, transactions, or changes may affect current or future tax obligations.

A business owner considering an entity tax election may need to understand its reporting and compensation implications.

An individual anticipating a significant income change may benefit from reviewing estimated tax obligations or withholding.

Tax Planning for Individuals

Individual tax circumstances can change throughout the year.

Potential planning discussions may involve changes in employment, self-employment income, estimated payments, retirement contributions, or significant financial transactions.

Our goal is to help clients understand relevant considerations before decisions become difficult to change.

Small Business Tax Planning

Estimated Tax Obligations
Understanding whether estimated payments may apply and how income changes can affect them.

Business Expenses and Timing
Reviewing the tax treatment and timing of expenditures under applicable rules.

Entity Tax Classification
Evaluating tax considerations associated with different business structures and elections.

Owner Compensation
Understanding relevant tax and reporting issues related to how owners receive income.

Year-End Planning
Reviewing financial information before year-end to identify decisions or deadlines requiring attention.

When Should You Meet With a CPA for Tax Planning?

Planning conversations may be useful when starting a business, experiencing substantial income changes, considering an entity election, or approaching a major financial transaction.

We believe clients benefit from understanding their tax situation throughout the year rather than viewing taxes as a once-a-year responsibility.

Frequently Asked Questions

What is the difference between tax planning and tax preparation?

Tax preparation involves preparing and filing returns. Tax planning considers how current or future decisions may affect tax obligations.

When should I start tax planning?

Ideally, before significant financial decisions or changes in income.

Can tax planning reduce my taxes?

Appropriate planning may identify lawful opportunities to manage tax obligations, but savings are not guaranteed.

Do LLCs and S corporations have different tax considerations?

Yes. An LLC is a state-law business structure that can have different federal tax classifications. An S corporation is a federal tax classification.

Do I need tax planning if I already have a tax preparer?

Not necessarily, but preparation and planning serve different purposes.

How often should I review my tax situation?

The appropriate frequency depends on your financial circumstances and significant changes.