Aurora Financial Services

Tax Planning

While tax preparation is an annual do it and forget process, planning can be year-round and is a separate service from tax preparation. Planning helps you optimize your tax situation BEFORE reporting. Tax planning can be a quick end-of-year process where examples of strategies might include bunching expenses, use of tax-loss harvesting to offset investment gains, increased retirement plan contributions to defer income and best timing for capital expenditures to reap the tax benefits. Here you emphasize defer, deduct and depreciate. More advanced planning is more of a deep dig into the taxpayer’s financial situation to look for opportunities for more complicated strategies.