Tax planning is an integral part of tax preparation. Planning can be done at anytime during the year, particularly when some “event” happens: marriage, birth, death, change of job, purchase or sale of home. Planning for these events before they happen can give taxpayers an advantage. Not knowing the tax effect of one or more of these changes can have unexpected tax and/or financial consequences that could have been avoided with proper planning.
Tax planning can also be done at year end. Waiting until after the year-end will limit taxpayer choices.
Be prepared by picking up the phone and calling your tax professional before it is too late to make tax-friendly decisions.