Tax Strategy & Preparation
Pro • ac • tive [prōh-ak-tive] -adjective
Serving to prepare for, intervene in, or control an expected occurrence or situation, esp. a negative or difficult one; anticipatory: proactive measures to save tax.
If you run your own business or manage investments, you rely on information. Information on products, markets, and customers. Information to make money. And information to keep money.
You rely on your accountant for some of your most important information. But what does your accountant actually do with that information?
At tax time, your books tell your accountant how much tax you owe. You scramble for more receipts and more deductions. But by tax time, it’s usually too late to do anything more.
Most accountants do a fine job recording history – the history you give them! They compile monthly, quarterly, and annual books and records. At tax time, they put the “right” numbers in the right boxes on the right forms, and file them by the right deadlines. But then they call it a day.
Is that all you really want?
Here’s How to Beat the IRS. Legally!
To minimize your taxes, you need a plan. You need concepts and strategies that leave more on your bottom line, without raising “red flags” or straying into “gray areas.” It doesn’t matter how good your current accountant is with a stack of receipts on April 15. If you haven’t planned right, by April 15 it’s just too late. Have you organized your business right? Do you have the right benefit plans for yourself and your employees? Do you have the right retirement plan to prepare for your future. Are you taking advantage of all the legitimate deductions, credits, loopholes, and strategies the tax code offers?
What Would You Do With $15,000
Ron came to us after he bought a small rental property down the street from his home. He bought the property because he heard it would be a great tax shelter. But he was frustrated because he didn’t see how it was helping him.
After one strategy meeting, we discovered the problem. Due to income limitations in the tax law, Ron couldn’t deduct his rental, and they remained “suspended.” We also found that he had quite a bit of equity built up in his home and rental that was not being used.
We developed a plan for Ron to use tax loopholes to his advantage and deduct those real estate losses against his other income. He also repositioned some of the equity in his home to buy more properties, creating even more deductions. In just one year, we created over $50,000 of tax free income to Ron and cut his tax bill by over $15,000!
We partner with business owners and investors throughout the United States. We have the experience -- and more important, the proactive attitude -- to give you more than just a history lesson.
2,471% Return on Investment
Enrique, was a top executive in a growing distribution business. A few years into the business, he was awarded stock options and eventually the company went public. Enrique was an overnight millionaire!
Enrique was a whiz at selling his company’s products. But he didn’t understand numbers. He got overwhelmed and nervous when he heard terms unfamiliar terms and relied on “experts” to make his accounting and financial decisions. That meant using a girl at the local tax franchise to prepare his returns. He had been with her 20 years and assumed she did a good job; she seemed to speak the “tax talk” he’d often heard around the office. And she was affordable – what could anyone else possibly do for him? That’s when a colleague introduced him to Certified Tax Coach, LLC.
Although he drew a sharp breath when he learned the price for the tax strategy, he thought of it as an investment and decided to give it a try. He was used to waiting 5 years for a return on investments so he calculated that as long as we saved him at least $700 per year in taxes, in no time, he’d have his money back.
At his first strategy appointment, his Strategist discovered that Enrique’s tax preparer had used the most expensive possible method for exercising his options. That cost him a whopping 44% tax! Luckily, he signed up as a client before he had exercised the bulk of his options. We quickly crafted a plan to stop the bleeding, using the “exercise and hold” strategy to exercise the remaining options when he was not subject to AMT tax. We also created an LLC and sold his primary residence to it to take advantage of the primary residence gain exclusion and turn the property into a rental. With the increased basis in the rental property, he was able to receive a larger deduction for depreciation expense, creating tax-free income from the property. His wife qualified as a real estate professional, which let him deduct valuable real estate losses against his salary. In the first year, he saved over $80,000 in taxes and each year after that he saved approximately $10,000 in tax from our strategy.
Enrique’s investment in his tax plan has returned over $124,000 in AFTER TAX cash flow – a return of 2,471%. Now THAT is a good investment!
How We're Different
My Name is Karla Morales, CPA
My name is Karla Morales. I started Abundant Tax Strategies, Inc to offer a different kind of service. We don’t just record the history you give us. We go beyond, to give you proactive advice and strategies to help you earn more and keep more.
I’m different because I’m a “Certified Tax Coach.” I give you a proactive plan full of court-tested, IRS-approved strategies for minimizing your taxes.
The “other guys” settle for after-the-fact planning. Too often, that means outdated information, nasty surprises on April 15, and no feeling of control. Abundant Tax Strategies gives you ongoing coaching and proactive solutions. You enjoy total confidence knowing you pay the least amount of tax possible while you work to achieve your dreams.
The “other guys” offer the same old solutions, year after year. That means paying too much tax! Abundant Tax Strategies gives you customized strategies. You profit from personalized solutions for your situation that reduce your tax.
The “other guys” offer business as usual. Abundant Tax Strategies gives you flexible planning. You enjoy complete certainty that you’re making the right decisions for your business.
The “other guys” offer “see you next year” service, with limited contacts except at tax time. (And invoices for phone calls and even emails!) Abundant Tax Strategies offers ongoing support. That means year-round contact, support, direction, and accountability.
What's the Bottom Line
- We empower you to achieve your dreams.
- We educate you in a language you understand – (we save the CPA gobbledy goop for all those lively CPA membership club meetings)
- We highlight areas in which you are strong and those that need improvement
- We help you set goals and help hold you accountable to achieve your dreams
- We design and help you implement innovative, customized tax strategies that minimize your taxes andyour risk of audit
Personalized Proactive Tax Strategy
The process starts with your personalized ProActive Tax Strategy. Here’s how it works:
- You start with a brief interview with a Client Consultant. We want to hear about where you are now, and where you want to be. We’ll ask a few easy questions about your current situation and from that determine the best Proactive Tax Strategy program for you.
- You’ll complete our brief Tax Questionnaire. This is where you tell us your financial, business and investment goals and where your money currently goes. We’ll need copies of your past tax return and a little information on each business entity (S Corporation, LLC, Limited Partnership, etc) that you currently have set up. It’s all in the Tax Questionnaire and we’re here to help you if you have more questions. The more information you give us, the better job we’ll do.
- Your personal strategist reviews your information and develops a comprehensive Proactive Tax Strategy. This process typically takes two weeks so we can research your best possible options. This is the stage where the cool things happen! In fact, the average savings for a taxpayer as a result of their Tax Strategy plan was over $14,000 per year!
- You’ll talk with your personal CPA Strategist to review the details of your plan and to get your feedback. Typically, this call lasts about an hour. It’s so packed with information, though, that we write up your customized strategy so you won’t miss a thing!
- You get a written strategy plan, along information on all available deductions, credits, loopholes, and strategies.
- About two weeks after the initial phone call, you can have a second follow-up phone call with your Strategist to cover the details of the first call again or to go through new questions you’ve uncovered.
Latest Articles
This section contains useful information and guidance about tax news, tax law changes and how to avoid penalties. I’m happy to answer your questions on these topics and other tax-related matters.
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