4 Myths and Misconceptions of Tax Planning. - Palma Financial

Tax planning can be confusing and intimidating for many individuals and businesses. It is natural to have questions about the cost, process, and importance of tax planning. We will address some common questions that people have about tax planning. Understanding these basics allows you to make informed decisions about whether tax planning is right for you and how to go about it.

How much does a tax plan cost? 

Answer: The cost of a tax plan can vary, but most tax plans range from $2,500 to $9,800. But the price may also depend on the potential savings a tax plan can offer.

What is a tax planning strategy? 

Answer: A tax planning strategy is a specific action or approach designed to reduce a person’s or business’s tax burden. For example, changing the type of business entity, you operate as could allow for more tax deductions.

Can my bookkeeper legally do a tax plan for my business? 

Answer: Anyone can legally engage in tax planning, regardless of their profession or qualifications. While a CPA or accountant may have more expertise in this area, anyone with the knowledge and skills can engage in tax planning. The IRS does not require any specific permit, diploma, or certificate to engage in tax planning legally.

How important is it to have a tax plan? 

Answer: The importance of tax planning can vary depending on an individual’s or business’s financial situation. The potential savings from a tax plan could be significant for those with a high-income level or assets. However, even for those who are not ultra-wealthy, a tax plan can potentially lead to substantial savings. It is ultimately up to each individual to decide whether tax planning is worth pursuing based on their unique financial circumstances.

Don’t let your taxes be a source of anxiety. Book a tax assessment with us and get the guidance you need to navigate the process confidently and save money on your taxes.