What is Tax Planning ?

Simply stated, tax planning is the process of structuring and conducting business and personal transactions so taxes are either reduced to the lowest possible level, or eliminated altogether.

There are numerous tax code provisions intended by Congress to allow and/or encourage lawfully structuring of business and personal affairs to claim tax benefits (including deductions, exclusions, credits, and deferrals), on a fully disclosed basis. Claiming tax benefits in a manner consistent with federal statutes, state statutes, and Congressional purpose is part of sound planning.

Over the years, U.S. Court decisions unequivocally and consistently support U.S. taxpayers’ right to pursue courses of conduct in their business affairs that result in legally minimizing tax liabilities.

Many taxpayers mistakenly believe that real savings come from identifying some mysterious new deduction to finding an undiscovered tax loophole. It does not. The secret to reducing tax obligations comes from evaluating the tax impact and consequences before entering into a personal or business transaction. Typically, there are many options and alternatives from which to choose, each with varying degrees of impact on the amount of tax liability. In all planning, due consideration must be given to all objectives of a contemplated transaction, including tax savings and the cost of implementation and administration.

The ultimate aim of tax planning is not to reduce taxes, but rather to maximize "after tax" income.

Transactional Tax Planning

Prudent business practices dictate every commercial transaction or transfer of assets be evaluated in light of the potential tax implications associated with its proposed structure. This will assure the desired result will be accomplished with minimized tax consequences.

AIW assists clients in implementing tax-structured business transactions, ranging from the relatively simple to the most complex and cutting edge, including: the formation of new enterprises, mergers, acquisitions, spin-offs, tax-free reorganizations, joint ventures (including LLC, partnerships, and other strategic alliances), divestitures, like-kind exchanges, cross-border transactions, structuring for investment capital raises (including venture capital and LBO transactions), securitizations and other financial instruments and vehicles, executive compensation arrangements (such as deferred compensation plans, golden parachute agreements, stock options and other equity-based incentive plans), etc.

AIW provides the necessary expertise when and where you need it – helping you deal with the present, and plan for the future.