Schedule Your ’23 Tax Planning Conference 

There are a couple of months left to project your 2023 tax results and make tax-saving decisions, we recommend that you schedule your 2023 tax planning conference with us. Whether you simply wish to anticipate the outcome of this year’s tax filing results or to proactively mitigate taxes, late October and November are the best time to plan.  

We know how important tax planning can be and TaxPlus doesn’t charge current clients for this tax planning service.

We’ll include a few ideas for year-end tax strategies in this correspondence, but call us for a personalized analysis. The topsy-turvy economy may have affected you this year.  There could be opportunities for realizing capital losses and converting taxable retirement plans. Review your taxable investment accounts for potential loss harvesting.  See Key Planning Points in this correspondence for additional ideas.

Your planning conference is also the ideal time to understand:

1. Your personal and business filing requirements
2. Filing dates
3. Best practices to gather and provide us with the filing information. 

Let’s resolve all questions now to make tax filing easier. If you are a small business owner, this is the ideal time to review your 2023 taxable income to determine the proper estimated taxes.

Key 2023 Tax Planning Points

• The challenging investment environment may provide loss-harvesting opportunities. Realize losses for ’23 by selling the losing positions.
• If the challenging environment has lowered your income, consider converting your IRAs to Roth IRAs at the current year tax rates.
• Incur business necessary business expenses in 2023 or prepay 2024 expenses using the IRS safe harbor rules.
• Set up a small business to provide an avenue for business deductions.
• With bonus depreciation and increased limits for expensing equipment, you may be able to deduct 80 percent of last-minute costs in 2023.
• Remember that a business credit card charge expense is deductible the day you charge, regardless of when the credit card payment is made.
• Cash-based entities can defer billings until January 2024 to defer income.
• Maximize your employee pre-tax plans, such as 401(k)s, 403(b)s, Health Savings Accounts (HSA), and Dependent Child Care Flexible Spending accounts.
• California’s AB150 created a workaround for the state tax deduction, State and Local Tax (SALT) cap of $10,000.  It creates an elective tax that allows state taxes on pass-through income to be paid at the entity level. Qualified owners can make the election to pay the elective tax at a rate of 9.3% on the qualified owner’s share of net income

We have a lot of flexibility to work together in person in Los Angeles or San Diego or by phone or video conference!  Call or e-mail to schedule tax planning time to minimize your 2023 taxes!

Please contact Brenda@taxplus.com or call 310.398.3231 to request a phone or video conference with one of our Enrolled Agents. Contact Nicole@taxplus.com  or call 858.279.1640 for our San Diego office.

We look forward to tax planning with you!

TaxPlus Team