Taxes | H&S Companies

TAXES

Don’t let the numbers crunch you!

Tax laws are continually evolving. Fortunately, the IRS publishes a guide each year to assist with filing your tax return. Unfortunately, the guide for individual 2019 tax returns was 280 pages long. As tax laws are set by the federal government and interpreted by the IRS, our team of professionals stays at the forefront of these changes to make sure we are maximizing your return while minimizing your risk of an audit.

Taxes are likely going to be one of the largest expenses you will pay over your entire life. Tax planning analyzes your potential lifetime tax liabilities and will develop strategies to significantly reduce this bill. This is a service that can pay for itself while putting more money in your pocket to do the things you want.

Case Studies

Kids in College:

A married couple with 2 kids in college was phased out of the American Opportunity Tax Credit. We were able to re-position assets to lower their adjusted gross income allowing them to maximize the credit saving them over $11,500 in taxes.

Health Care Exchange:

We developed an asset withdrawal strategy for a retired married couple to cover living expenses while lowering their taxable income. This increased their Affordable Care Act credit (and tax refund) by $6,225.

In Retirement:

We have been Roth Converting for a retired married couple with IRAs annually to maximize the 12% federal income tax bracket. When the stock market was down 35% we recommended the Roth Conversion to allow for more shares to be converted. The shares quickly recovered their value resulting in a $12,500 tax-free gain and saved them about $2,000 in taxes.

Business Tax Structure:

A technology company was operating as a C-corporation. Upon our review, we found that this classification provided no unique strategic advantage to the company. We recommended they convert to a S-corporation and align the shareholder’s wages with IRS guidelines for reasonable compensation. Doing so saved the company $45,000 per year in taxes.