Tax Planning Services

Most wage earners today have diversified income streams and retirement programs. In other words, they don’t rely on a paycheck or Social Security to support them. Because we file their personal income tax returns, we are acquainted with our clients’ various income streams, and are able to assist our clients in tax planning.

Tax planning is – at the most basic definition – “anticipating the tax bracket implications of a large transaction and minimizing the impact of it.” With tax planning, timing is critical. It can mean the difference of tens of thousands of dollars!

At Picchi & Martel, we use software to create projections based on our clients’ income tax bracket, and then structure a plan to minimize the impact of:

  • IRA distributions
  • Company Buyouts
  • Required Mandatory Distribution (RMD)
  • Selling Stocks
  • Sale of Property
  • Inheritance

We help our clients get ready for retirement. While some of these – such as selling stocks, real estate or inheritance – may occur during prime earning years, our tax planning services become critical for clients within 3 to 5 years of retirement. For example, an RMD is required at 70 ½ – however, spreading it out over three years can reduce how much taxes are paid on that money. We will evaluate a client’s IRA distributions to see if the 12% maximizing income tax benefit works better for the client as opposed to paying capital gains tax.

Businesses need tax planning services too! Minimizing the impact that taxes will have on small businesses requires planning as well. We help our business clients to explore the options of expensing or depreciating assets, as well as projecting out when they should reinvest in equipment or other hard assets for maximizing their tax benefit. This is just one of many benefits we offer in our tax services for small businesses.

We partner with our clients. Whether business or personal, our clients know it’s always better to know about a large purchase, sale, or any other life-changing event as soon as possible.