Tax Planning Guide for Businesses & Individuals (2022-2023)

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Year-end tax planning is the practice of evaluating your tax situation and trying to minimize your tax liabilities while looking at your overall financial position. It is also a good time to review your estimated tax requirements, anticipated cash outlays at the filing deadline, and working to avoid underpayment of estimated tax penalties. While this can take place at any time during the year, there are certainly actions taxpayers may take now to realize a more favorable tax outcome.

AAFCPAs encourages clients to review our 2022-2023 Tax Planning Guide for Businesses & Individuals to familiarize yourself with sections or strategies that may apply to your situation and discuss with your AAFCPAs Tax Advisor.

Personal strategies

  • Accelerating or deferring income
  • Maximizing or bunching deductions
  • Giving tax-savvy donations
  • Contributing to a retirement plan
  • Claiming all possible tax credits
  • Taking child-related breaks
  • Timing capital gains and losses
  • Planning for retirement plan distributions
  • Participating in a Flexible Spending Account or Health Savings Account
  • Taking advantage of education savings plans
  • Making timely estimated tax payments
  • Incorporating tax planning into your estate plan

Business strategies

  • Selecting a tax-advantaged business structure
  • Claiming all credits for which you’re eligible
  • Deducting all eligible business expenses
  • Accelerating or deferring income
  • Using a tax-smart depreciation method
  • Qualifying expenditures as repairs
  • Taking advantage of 100% bonus depreciation or Section 179 expensing
  • Maximizing vehicle-related deductions
  • Choosing tax-saving employee benefits to offer
  • Setting up a retirement plan
  • Using a net operating loss to your tax advantage
  • Incorporating tax planning into your exit plan
  • Disposal of obsolete inventory
  • Optimizing pass-through entity tax
  • Paying previously accrued expenses owed to related parties

Tax planning is a critical challenge—especially in times of legislative and economic uncertainty. Our goal is to make sure clients are doing everything they can to save tax.

We welcome the opportunity to help you map out a tax plan that takes full advantage of all strategies available to you. Please contact us at your earliest convenience to discuss how we may help you develop a tax plan for 2022 and beyond. Most tax reduction strategies must be implemented by Dec. 31 — and some even earlier. So, the sooner the better.