How we used our LTax review and tax planning consultation process to help a dentist and his family reduce their taxes.
Subject
An engagement where a family took advantage of our complimentary LTax analysis and tax planning consultation for tax planning strategies.
Objectives
Conduct an analysis of previous year’s tax returns (individual/joint, trust and entity)
Provide observations and recommendations regarding potential impact of proposed regulatory changes. Areas covered:
Federal and Oregon State Income Tax
Estate Tax Planning
Retirement Related Tax Considerations
Results
Capital gain tax mitigation: Opportunity Zone Investment - (1) Defer previously recognized capital gains, (2) Benefit from permanent exclusion of taxable income on new gains (10-year hold) generated from investment in Opportunity Zone Fund.
Capital gain tax mitigation: Tax mapping capital losses to offset large capital gains.
Maximizing itemized deductions: Charitable giving - increase charitable contributions based upon The Coronavirus Aid, Relief and Economic Security Act (CARES Act). Itemized deductions for cash contributions were increased to 100% of adjusted gross income for 2020.
Reducing estate tax exposure: Gifting ownership interest in private investment into irrevocable trust.
Planning: Roth IRA Conversion: Recommended recharacterization of a portion of traditional individual retirement accounts based upon projected 2020 marginal tax rates.
LTax is a boutique tax firm emphasizing personalization, communication, and initiative-taking responsiveness.
We take a consulting approach to tax preparation and planning, ensuring regular client communication and a personalized understanding of our clients’ needs. We tirelessly research tax mitigation strategies and develop actionable recommendations for the benefit of our clients.
