Tax Planning

Tax planning considers the tax implications of individual, investment, and business decisions, usually with the goal of minimizing tax liability. Although decisions are rarely made solely on their tax impact, you should have a working knowledge of the income or estate tax issues and costs involved.

Minimize Federal Income Tax Liability

A major goal of tax planning is minimizing federal income tax liability. This can be achieved through various strategies. Your financial planner will talk with you about reducing taxable income through income deferral or shifting, deduction planning, investment tax planning, and year-end planning strategies

Investment tax planning

Investment tax planning involves evaluating how to best position assets in order to minimize the amount of taxes you have to pay on an ongoing basis. This requires year-round planning, and it begins with an in-depth understanding of the tax implications of various investments and investment strategies, including:

  • The treatment of wash sales
  • Tax-exempt investments
  • Gains and losses
  • 1031 exchanges
  • Qualified dividends
  • Option strategies
  • Tax-deferred investing
  • Passive income and losses
  • Mutual fund taxation

Giving Away Wealth

If you give away wealth, during life or at death, you may incur federal taxes—and possibly additional state taxes. These taxes include gift, estate, income, and inheritance taxes. You can help protect the assets you transfer from excessive depletion by understanding these taxes and the various strategies you can use to minimize them.

Tax issues are never far from the mind of the business owner, and it’s likely that many of the decisions you make will be tax-based. It starts with the formation of your business and continues through the sale. Your choice of business entity, how you pay out profits to the owners, and your accounting decisions will all have an effect on your tax liability.

Some events in life—retirement, for example—come with tax considerations. Life event planning focuses on the impact of significant events on your life, as well as on the stages of your overall investment plan.

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Investors should consult with a tax or legal professional regarding their individual situations.

Your Tax Planning
Commonwealth Team

Guide Star Financial partnered with Commonwealth because their support and ingenuity go hand-in-hand with our objectives. Together, we make a very strong team and provide access to resources and industry experts to guide your financial decisions.

Justin Duft


Heather Zack


Martin Baker


Mike Baum


Maureen Baxter

Keven DuComb

David Haughton

Anna Hays

Aric Jacobson

Aric Jacobson

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