Strategic tax planning is an important part of building and preserving your wealth. There is a saying that says, “it’s not what you make that matters, it’s what you keep that can make a difference.” Don’t leave money on the table, wasting money on taxes that you don’t legally have to pay. For many people, taxes are your biggest expense. It makes sense to focus on saving money where you currently spend the most. Strategic tax planning guarantees results, but those guaranteed results start with planning. When it comes to creating and managing wealth, the greater we can control and limit taxes during your lifetime, the greater resources you’ll have for your family and the bigger your legacy will be that you can leave behind, positively impacting the people and causes that matter to you. We can show you how you can use strategic tax planning to retain more of your wealth.
Greater wealth allows you to live your life more fully and leave a lasting legacy. Lower taxes is the first step to increasing your profit. At Financial Gravity our tax experts are focused on helping you keep more of what you make through strategic tax planning. We know that taxes and finances are complex and we know that our Tax Blueprint® can help. Every minute that you wait, you lose more of your hard-earned money, overpaid in taxes that you don’t legally or morally owe. Learning how to pay the lowest tax allowable starts with a quick free assessment with one of our tax experts. Read more
The Tax Cuts and Jobs Act was signed into law by President Trump in December 2017, ushering in a new wave of tax rules. The tax code is thousands of pages long, full of obscure rules on topics that don’t apply to most Americans. It’s likely that you don’t need to know expensing costs for replanting citrus plants, net operating losses for life insurance companies, and limits on FDIC premiums that banks with more than $10 billion in assets can deduct. With all the new tax law changes, what you need to understand is how the Trump tax plan affects you, and how you can take advantage of these new rules to keep more of what you make. At Financial Gravity we know that, in the end, it’s what you keep that counts.
Taxes and patriotism have been wrapped up together pretty much since the Boston Tea Party. The consensus has long been that while paying taxes is a patriotic act, overpaying on your taxes is not. The United States has one of the highest rates of tax compliance in the developed world, and while a majority of taxpayers in the United States see taxpaying as their civic duty, there is no reason to overpay what is legally, ethically, or morally owed. A basic business fundamental is to maximize money coming in and minimize money going out. The easiest way to increase profit is to ensure that you aren’t spending money unnecessarily. A strategic tax plan from Financial Gravity is the business fundamental you are missing to make sure you aren’t paying more in taxes than what is required.
In 2017 the corporate tax rate was 35 percent, but most American companies paid far less than that. The Tax Cuts and Jobs Act created a single flat rate of 21 percent, but even that number is higher than studies indicate corporations are paying. What corporations actually pay, their effective tax rate, is estimated to be between 13 and 19 percent for federal taxes, based on multiple studies. That effective tax rate is far lower than the rate many other small businesses pay every year. The tax code is full of opportunities for businesses to save money — if they know how to leverage the tax law for their benefit. The problem is that most tax preparers are concerned only with what they see in the rearview window, without being able to look forward. Strategic tax planning from Financial Gravity gives business owners of any size the tools to legally paying less in taxes.
Facebook has been able to boast about many accomplishments, from their acquisition of virtual reality technology company Oculus VR, Inc., to the first time they hosted over one billion users in one day. For the company, it’s likely none of these accomplishments will be as well regarded as one related to their finances. In 2016 Facebook anticipated that their effective tax rate would fall from 40 percent to about 27 percent for the year. With the federal corporate tax rate at 35 percent at the time, this rate would have been considerably lower. Facebook serves as just one example of how large corporations use a strategic tax plan to lower their taxes, saving thousands of dollars every year. How did Facebook, along with other major companies, pay a tax rate lower than your business? The answer is strategic tax planning.
How Do They Do It? Facebook Paid a Lower Tax Rate Than Your Business
Effective Tax Rates
It’s natural that as companies begin to make more money they start thinking more carefully about their taxes. It’s one reason why major corporations employ teams of experts that work together to take advantage of every tax-reduction strategy allowed by the tax code.
While Facebook has declined to comment on the exact strategies used to lower its tax rate, the effective tax rate reported by companies to the SEC is often higher than what the company actually pays. This means, of course, that the 27 percent effective tax rate Facebook expected to pay might be higher than what they actually paid. Some tax experts have estimated that when Facebook was reporting a 40 percent tax rate, they were likely playing closer to 13 percent.
Strategic Tax Planning
Facebook is hardly the only major U.S. company that works to find ways to lower its tax rate. A vast number of companies on the S&P 500 had an effective tax rate of 20 percent or lower, and at least a few of the companies paid essentially zero in taxes. In fact, many of the tax strategies that Facebook and other large companies used have become commonplace among corporations of their size. Just because the big companies use them, however, doesn’t mean these strategies aren’t available to smaller companies.
Facebook being able to lower their effective tax rate is impressive, but it’s not impossible for smaller companies to replicate. It all starts with a strategic tax reduction plan — the Tax Blueprint® from Financial Gravity.
Businesses of all sizes should think of a strategic tax plan as standard operating procedure. This is a business fundamental that far too many businesses are lacking. Businesses want to maximize money coming in, of course, as well as minimize money going out. The easiest way to increase profit is to cut unnecessary expenses, such as overpaying taxes. Strategic tax planning helps you keep more of the money you make.
Make The Tax Code Work For You
It might sound dramatic, but a Tax Blueprint® could change your life. Saving thousands of dollars in taxes every year means more capital that you can put back into growing your business. That additional business growth could be what you need to change the trajectory of your business. Every minute you wait to implement your strategic tax plan means more of your hard-earned money is draining away, being overpaid in taxes you don’t legally, ethically, or morally owe. A quick, free assessment is all it takes to start your Tax Blueprint® process.
Companies like Facebook know how to make the tax code work for them rather than against them. We use the IRS Tax Code comprehensively to ensure you pay only what you must. With your Tax Blueprint in hand, you’ll see exactly how the tax code can work for you and your specific business. Each and every tax-reduction strategy we employ in your Tax Blueprint is sourced and referenced directly by the IRS Tax Code. You’ll see firsthand that every strategy is legal, ethical, and moral. With your implementation plans highlighted and summarized, you can be confident that the savings are real.
Maintaining Your Strategic Tax Plan
Beyond your Tax Blueprint, Financial Gravity can help you implement and maintain your strategic tax plan through our Tax Operating System®. Designed to fit any budget and circumstance, our suite of solutions help you save money via strategic tax reduction. Additionally, you can count on access to our advisors, annual tax-planning assistance, ongoing newsletter, and educational materials.
The truth is that you are likely paying too much in taxes, perhaps thousands more than the law requires. Even if you employ a CPA, many do not know how to take advantage of this level of tax planning because they weren’t trained to do so. To leverage the benefits of the tax code, you need to be proactive and you need to have a plan. Through our Tax Blueprint®, Financial Gravity can provide you with a clear, proactive, strategic tax plan that is customized to your business. Contact us today to schedule your free assessment!
Before the Tax Cuts and Jobs Act of 2017, the top corporate rate for taxes was 35 percent. This rate was one of the world’s highest federal tax rates, which makes it no surprise that GOP lawmakers made lowering overall taxes a priority. While the new law lowers taxes overall, its main focus is on cutting corporate taxes. After the new tax law, there is a single flat rate of 21 percent. Even with corporate tax rates set, America’s biggest companies employ strategies that enable them to pay a lower tax rate. Strategic tax planning isn’t only for large corporations; businesses of any size can navigate the tax code to legally, ethically, and morally pay less taxes.
There is a common misperception that strategic tax planning is reserved for the ultra-wealthy, a luxury that only they could afford—but nothing could be further from the truth. In fact, that whole idea that strategic tax planning is only for big companies is a tax myth. While it is true that big companies can afford a slew of lawyers all sitting around a table, brainstorming ways to pay less taxes, small business owners can get the same benefits.
The good news is that the new tax law, the Tax Cuts and Jobs Act, includes lower tax brackets and a near doubling of the standard deduction. However, there is also much uncertainty looming regarding the new tax law, as several provisions within the Tax Cuts and Jobs Act (TCJA) remain unclear. Changes to income, confusion regarding itemized deductions for state and local taxes, and other unclear provisions have already caused some taxpayers complications. The new tax law makes strategic tax planning for 2018 more important than ever.
Paying your taxes isn’t something that is optional, but one area where you do have a choice is how you decide to approach your tax deductions. After determining your total income, adding up all the sources of income and subtracting any adjustments to income, you will need to decide which deduction option to choose.
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