Tax planning has always been a valuable way to minimize risk, and maximize opportunities for you and your business. But has tax planning become even more important in 2018?
In this episode of “Unique Perspectives – The DGC Podcast,” our guest is Dan Gaudet, CPA, a Principal at DGC and the leader of our firm’s Accounting & Business Advisory Services Group. Dan discusses the value of tax planning, and how tax reform has impacted the planning process. This is the first in a series of podcasts geared towards our Accounting & Business Advisory Services clients.
Here is a partial transcript from Dan’s interview with host Tom Annino.
Tom Annino: You’ve said that clients sometimes tell you, “I just spend all of my cash at the end of the year. It’s what I’ve always done.” Why is that potentially problematic for some?
Dan Gaudet: Because things change. To put it simply, things change. In some cases, that might be OK. It might be good enough. It is, in other ways, leaving it to chance in my opinion. Sometimes, if there is a credit card involved, a line of credit, or ownership changes in the company from one year to the next, these can all impact your taxable income and, sometimes, in ways that are unexpected. Not many people like surprises in April when the surprise is that they owe a tremendous amount of money to the IRS. Tax planning allows you the opportunity to look at the whole picture, and potentially do something about it.
TA: Obviously, tax planning is heavily impacted by tax reform. How much has tax reform impacted tax planning in general and, maybe even more so, how much has tax reform impacted the importance of tax planning?
DG: This year’s tax law changes are certainly going to play a huge role in our tax planning process. From changes in tax rates and pass-through deductions for individuals, changes to itemized deductions, changes to entertainment expense deductions and certain fringe benefits, the tax law changes this year are going to have a big impact on our process. We consider all of these changes as well as our clients’ business goals and personal goals. It will definitely play a big part.
To listen to the entire interview, click here or use the Soundcloud player above.
DGC’s Accounting & Business Advisory Services Group can use tax planning to ensure you are well positioned while also minimizing surprises. For more information, contact a member of your DGC engagement team, or Dan Gaudet, CPA at 781-937-5142 / firstname.lastname@example.org.
To view our podcast archives, click here.