Anticipating Life EventsFebruary 27, 2020 - 3 minutes read
Proactive Tax Planning to Protect and Preserve Assets and Income
Life events can be coupled with tax implications that could have been avoided but in the least should have been anticipated. It is possible to anticipate changes and plan, thus protecting your financial situation. Planning is as significant in addressing business changes as it is for personal changes.
Change, personal and business, is inevitable. Why avoid the discussion when time is available to plan and anticipate how best to steer through life’s events? After the event, decisions required due to lack of planning increase stress and decrease choices.
Some events are inevitable; others are merely possible. One cannot cover every base but start with the obvious. Some changes that could occur are personal events such as marriage, purchase of a home, investing, retirement, providing for a growing family, and divorce. Something becoming more significant almost daily is the care of aging parents. Yes, there are tax implications even for that.
Business or career events, including the purchase or sale of a business, restructuring ownership, and significant purchases of equipment will also have tax costs or benefits depending on the approach.
Personal and business events can also be mixed together. A family-owned business, farm, and real estate being passed to future generations requires careful planning. The tax implications can impact the business as well as the recipients. Dealing with the complexities of the related choices is not something to do quickly or under stress, and hopefully never after the fact
Price CPAs anticipates that many business owners of “Baby Boomer” age will either sell, transition, or pass their businesses to the next generation in the next decade. Studies tell us not many have discussed that process thoroughly with their children or trusted advisors.
Tax advice from a qualified, experienced professional can reduce tax risk, as well as minimize the stress that comes with making some of the decisions inherent with major change. Price CPAs has worked with personal and business clients since 1953 to anticipate future events and explore ways to reduce tax and financial costs.
Let Price CPAs help in planning for the life events that may be anticipated. Please call 615-385-0686 or reach us through our website (www.pricecpas.com).
Mark Fly, CPA/ABV Jennifer Nipp, CPA
Tax Director Tax Manager