Why Your Tax Strategy Should Start Before April
When most people think about taxes, they think about filing, not planning. As April approaches, inboxes fill with reminders, receipts, and forms, and it becomes a frantic rush to submit everything on time. But what if your tax strategy didn’t have to be reactive?
The most effective tax planning isn’t something you do once a year, it’s a proactive, ongoing process that shapes how you earn, save, invest, and give. At Legacy Planning Advisors, we work with individuals, families, and business owners throughout the year to align their financial decisions with smart, purposeful tax strategies.
The Difference Between Filing and Planning
Tax filing is backward-looking. You gather the documents, complete the forms, and submit your return based on what happened in the prior year. Tax planning, on the other hand, is forward-focused. It helps you:
Anticipate your future tax exposure
Make strategic decisions before year-end
Minimize liabilities through timing, structure, and charitable giving
Create coordination between investments, income, and legacy goals
It’s not just about reducing what you owe—it’s about aligning your financial life with the tax code in a way that supports your larger goals.
Start Early to Maximize Your Options
The earlier you begin, the more tools are available. Waiting until tax season often means you’ve missed opportunities. Here are a few examples of tax strategies that are most effective before the year ends:
Tax-loss harvesting – Selling underperforming assets to offset gains
Charitable giving strategies – Timing contributions or using donor-advised funds
Business owner deductions – Maximizing retirement plan contributions, deferring income, or accelerating expenses
Gifting to family – Taking advantage of annual exclusions
Roth conversions – Timing based on income projections
When these decisions are made reactively, options may be limited. But with proactive planning, they become powerful tools for reducing tax exposure over time.
Tax Planning for Business Owners
Business owners have unique opportunities and responsibilities when it comes to tax strategy. From choosing the right business structure to managing payroll, distributions, and deductions, the tax implications of daily decisions are significant, especially when aligned with long-term retirement and life planning.
Working with a financial advisor who understands business tax dynamics allows owners to:
Identify timing strategies for major purchases or income recognition
Navigate Section 179 and bonus depreciation rules
Coordinate retirement planning with business goals
Integrate exit planning with personal wealth transfer goals
At Legacy Planning Advisors, we collaborate with tax professionals to ensure these strategies align with the client’s broader financial plan, not just their business balance sheet.
Tax Efficiency and Wealth Management Go Hand-in-Hand
Many investors overlook the tax implications of their portfolio decisions. Yet over time, taxes can quietly erode returns. That’s why investment management and tax planning should go hand-in-hand.
Tax-aware wealth management includes:
Asset location strategies – Placing investments in taxable vs. tax-advantaged accounts appropriately
Harvesting strategies – Timing capital gains and losses
Income distribution planning – Especially for retirees drawing from multiple accounts
Required Minimum Distributions (RMDs) – Planning withdrawals to avoid unnecessary penalties or spikes in tax brackets
The goal isn’t just to grow wealth, it’s to retain as much of it as possible.
Charitable Giving With Intention
For clients who want to give back, taxes often play a major role in structuring their gifts. Strategic philanthropy allows you to support causes you care about while also creating tax advantages. Options include:
Donor-advised funds (DAFs)
Qualified charitable distributions (QCDs) from IRAs
Appreciated stock donations
Charitable remainder trusts (CRTs)
These tools require thoughtful planning and typically need to be executed before year-end to be effective.
Taxes Are a Tool, Not a Burden
While no one enjoys paying taxes, viewing the tax code as a planning opportunity rather than a burden can shift your perspective. With the right guidance, tax planning becomes a tool to:
Preserve your wealth
Support your family
Fund your legacy
Live and give with greater intention
At Legacy Planning Advisors, we don’t offer cookie-cutter tax tips. We build customized strategies based on your goals, your income streams, and your long-term vision.
Make This Year the Last Time You Scramble in April
If tax season has always felt like a sprint to the finish line, now is the time to change that pattern. By planning, you’ll not only reduce stress, but you’ll uncover opportunities to strengthen your entire financial strategy.
Whether you’re approaching retirement, managing a growing portfolio, running a business, or thinking about your legacy, your tax strategy should support the bigger picture. Let’s make this the year you take a proactive approach with tax planning services in Suwanee, GA, and unlock the clarity and confidence that comes with it.
Legacy Planning Advisors
(770) 919-2075
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