As a premier provider of tax and accounting services for the Los Gatos area, Loreen is proud to offer her clients smart tax tips such as these:
Take the "long view" on income taxes...What may be a positive move this year may create a tax trap for you next year. Loreen can forecast potential income tax impact over several years, using a a set of assumptions to create various scenarios, and assist you in minimizing income taxes over a period of two to five years, not just the current year.
Make well-reasoned financial decisions...Never make a financial decision based solely on the current income tax impact. Sometimes the best financial transaction creates a negative current income tax impact. However, net of tax, it may be a great financial move. Loreen can calculate the income tax impact of a financial transaction before it is made, so all the factors can be weighed before making an important financial decision.
Understand your retirement income needs...The same amount of income in retirement could result in higher net cash flow. Payroll taxes will not be withheld from your retirement income and you will not be contributing to the retirement plan. Thus you will not need as much gross income in retirement as when earning a wage. Further, with lower gross income, your marginal tax rates will likely be lower as well. Loreen can help you calculate the amount of income you will need in retirement, net of anticipated income taxes, to maintain your standard of living.