Once again, tax season is here. While some individuals dread it like the plague, others view it as a chance to practice their tax planning strategies. But what does it take to be an expert in tax planning?
Let’s look at some of the fundamental abilities needed for effective tax planning.
1. The Ability to Read Minds
Tax planning begins with reading minds. You have to be able to get inside the minds of the IRS to understand what they are thinking. Are you subject to an audit? Are you going to get a refund from them? But if you’re an expert in tax planning, you’ll understand exactly what’s going through their heads.
2. A Knack for Creative Accounting
The second skill you’ll need is creative accounting. Being able to devise numerous inventive ways to defer income, deduct expenses, and avoid owing unnecessary taxes is essential.
Creating shell companies or transferring money through offshore accounts might be something you’ve done for years, but it can be very dangerous. It doesn’t matter what method you use; as long as you’re following the law, you’re doing it right. Be careful not to tempt fate! Consult a professional (like us!).
3. A Strong Stomach
Since tax planning can be difficult, you’ll need a strong stomach to manage the pressure. It requires mental fortitude to deal with long hours of studying math and details.
4. A Sense of Humor
It helps to be humorous when it comes to tax planning. There is nothing more boring or stressful than dealing with taxes. However, if you cannot enjoy yourself, you’re going to have a tough time. Or get a tax planner to do the work for you.
5. A Complete Lack of Ethics
We’re kidding. The best tax planners are the one’s who follow the law and get creative with the rules and regulations they abide by. Saving money doesn’t have to cost you your freedom!
All of this can be difficult if you haven’t done tax planning before, especially for your own business. So give us a shout, and we can walk you through some tax strategies that may work for you!