The true key to building wealth lies in building assets. And the first step toward building assets is to get serious about tax planning. Regardless of how much money you make, you can start converting your income into assets using smart tax strategies.
The tax system is set up to go after income instead of wealth. The tax code offers incentives for asset building and your tax professional can advise you on the tax-efficient strategies available. Here's an introduction to how that works.
Pay Taxes on Income or Assets
Tax strategies that reduce the amount of taxes you pay on your income can increase your ability to invest. Assets create real wealth, and smart tax planning converts your income into assets. Unless you have some tax secrets up your sleeves, the more you make, the more you will pay in taxes. That makes it very difficult for anyone to build wealth on income alone. However, your assets aren’t taxed the same way. Remember, the system is set up to go after income instead of wealth.
Tax Saving Strategies That Work
Most people benefit from having a financial expert in their corner. When it comes to financial planning, your tax professional is in a unique position to give you advice on asset-building strategies How? Here are three tax-efficient methods for shifting your resources away from tax payments to asset building and security.
A thorough analysis of your filing status and deductions is an effective way to reduce the amount of taxes you pay. Your CPA has the knowledge of your personal finances and the expertise to combine smart, personalized planning with annual tax preparation and filing.
An experienced CPA can work within the tax code to advise you on how to make smart decisions that will avoid capital gains or identify tax-exempt investments.
A valuable asset to most individuals is their retirement account. A common question is whether to choose a traditional (tax-deferred) or a Roth option. That decision involves the analysis of which tax situation is most appropriate for the individual. Your CPA has all the data needed to help you make a wise choice.
It’s never too early or too late to start building wealth. You don’t have to be a financial genius to start using tax strategies to convert your income to assets. Consult a CPA that specializes in helping clients make financial decisions that are "tax beneficial."
Charles P Myrick CPA offers tax preparation for individuals using a process that combines smart, personalized planning with annual tax preparation and filing. Our job is to help you know about all the available tax opportunities that meet your individual needs and circumstances. We work closely with tax lawyers, and investment advisors to ensure that all the details are legally sound, technically accurate, and working to your maximum benefit. Contact us to learn more: (202) 789-8898