Tax planning for Magic Valley businesses and families

Why timing matters

Once December 31 passes, most of the levers are gone. Preparation records what happened; planning changes what happens. The gap between the two is usually the difference between an acceptable tax bill and an avoidable one.

What gets looked at

Entity structure and whether it still fits the business. Retirement plan contributions and which plan type allows the most, which is a conversation worth having whatever industry you are in. How owners take compensation, which for an S-corporation is a specific and frequently mishandled question. The timing of income, equipment purchases and depreciation elections. Estimated payments, so April holds no surprises.

Before a major transaction

Selling a business or a building, bringing on a partner, buying out a partner, taking on significant debt, or setting up a succession plan all have consequences that are far cheaper to plan than to unwind. A conversation before the paperwork is signed is worth considerably more than one after.

When to start

Late summer through fall is the ideal window. There is still time to make contributions, time purchases and adjust compensation before the year closes.