Tax Planning

Tax Planning Year-Round


Most people try not to think about their taxes – let alone prepare for it – until the April 15 deadline.


What many don't realize is that to minimize the amount of taxes you pay, it's crucial you make a plan and be proactive all year long. Some strategies you can take are:


- Keep detailed records all year; consider using accounting/record keeping software
- Time certain income and expenses
- Seek business tax credits


But because tax law is ever-evolving, it would be beneficial to meet with a tax specialist to map out the right strategy for the year.


For over 38 years, Morris and Associates have provided aggressive strategies to manage our clients' tax exposure and limit what they owe year after year.


Contact Morris and Associates today for a FREE consultation.



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Business Tax Planning

Partnerships, S-Corps, C-Corps, and LLCs


As chaotic a year we had in 2020, businesses small and large will still have to pay their taxes.


If you're self-employed you may have to pay an estimated tax quarterly to avoid additional fines and fees. To pay Social Security and Medicare taxes and income taxes, use Form 1040-ES, Estimated Tax for Individuals worksheet


But this year, don't overlook all the potential ways you can minimize your tax debt for your business.


Paycheck Protection Program (PPP) Loans

It's important to know how much of your loan maybe be forgiven.


Capital Gains

Now maybe an appropriate time to harvest some capital gains while rates remain favorable at 15% for long-term gains.


Net Operating Loss (NOL) Generation

The CARES Act provides a temporary five-year NOL carryback for most taxpayers. If your business generated a loss for 2020, there are strategies to recoup taxes paid in prior years.


Contact Morris and Associates today for a FREE consultation to learn if there are taking advantage of the strategies currently available to you.



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Retirement Tax Planning


One way to protect your retirement and get the most out of every dollar is the reduce the amount of taxes you pay.


Every year, millions of Americans overpay in taxes and are never made aware of it. Below are a few strategies to consider to better manage your taxes now and when you're ready to retire:


Asset Diversification

Your money can be held in three different types of accounts, which are all taxed differently. Meet with one of our experts today to determine the best after-tax retirement strategy.


Roth Conversions

You can shift assets from your tax-deferred accounts to tax-free accounts using Roth conversions, which is when you "prepay" the taxes on the money you convert. This strategy allows you to capture all future growth and income as tax-free.


Tax-Loss Harvesting

You can use capital losses to offset capital gains and income tax. You can then replace (harvest) the investment with a similar investment to maintain balance and diversification within your portfolio.


There are many other strategies that can be employed to reduce your tax rate even if you're in another tax bracket.


Contact Morris and Associates today for a FREE consultation to discuss what strategies you should employ to pay fewer taxes during retirement.



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Succession Planning


Without the right business succession plan, you leave your family-owned or privately held business vulnerable to higher taxes, ownership disputes, loss of revenue, or worse.


A business succession plan needs to include a tax plan as it affects the value of the company, the owner's persona wealth, and the amount of wealth that can pass to the next generation.


While the future of your company will be out of your hands, you can guarantee a certain tax outcome with the right plan in place.


The right plan will depend on a variety of factors, such as:


  • - Company structure
  • - Whether you plan to sell or transfer ownership
  • - Whether your company has an employee stock ownership plan (ESOP)


If you're planning to transfer ownership to family members, there are a few ways to do it, but each with different tax implications, such as transferring now, at death, or over time. For example, if your business is an S corporation, you could transfer your shares into a Grantor Retained Annuity Trust (GRAT), which allows you to control the assets until your death, receive annuity income from those shares, and transfer the remaining interest to your heirs. The GRAT would be excluded from your estate and on future incomes will be taxable to your heirs. This is just one of many types of trusts that can be employed.


Contact Morris and Associates today for a FREE consultation to discuss which succession strategy would be best for you.



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International and Expatriate Planning


The United States is one of only two countries that impose taxes on its citizens abroad.


Although you can exclude all or part of your foreign income if you meet statutory foreign residence or physical presence abroad tests, you are still required to file a federal tax return every year if your global income is above the filing threshold.


Also, your income earned abroad is often subject to foreign income taxes, which can create credits or deductions and provide an additional measure of U.S. tax relief.


For questions regarding IRS Form 8854, the Foreign Bank Account Report (FBAR), Foreign Earned Income Exclusion (FEIE), Foreign Housing Exclusion, and Foreign Tax Credits (FTCs), contact us today to schedule a FREE consultation with one of our tax specialists.



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Estate and Trusts Tax Planning


You worked hard for your money and assets. Why not do all you can to fully protect it from as much tax as possible available under the law?


Provide your family with security and peace of mind by allowing us to help you create a cutting-edge plan that shields your assets from unnecessary taxes through trusts, wills, various entity structures (like partnerships and LLCs), domestic and cross-border plans.


By establishing the right trust and/or implementing the right gift strategy for your circumstances, you can greatly reduce and even eliminate estate taxes.


Contact Morris and Associates today for a FREE consultation to discuss which estate and trust strategies we would recommend for you.



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Social Security Planning


After decades of work, you deserve to celebrate and reflect on all you've achieved without having to worry if you'll have enough to retire.


What will help relieve this burden is ensuring you make the most of your well-earned Social Security benefits.


To be eligible for Social Security, you must accumulate 40 credits over your lifetime. You can earn a maximum of four credits per year. Although you technically can collect this benefit in 10 years, you should plan to work at least 35 years to maximize your Social Security benefits.


There are many factors that determine the amount of your monthly benefit, such as what age you file, whether your eligible for spousal benefits, and if you plan to work part time or take IRA withdrawals while collecting your monthly benefit.


Contact Morris and Associates today for a FREE consultation to discuss a strategy to maximize your Social Security benefits.



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Gig Worker Tax Planning


Gig workers continue to represent one of the fastest growing segments of the economy, but the way the self-employed (whether you're fulltime or your gig is a side hustle) is different than as an "employee."


Because an employer isn't withholding money for federal or state (depending on where you live) income tax, this responsibility falls squarely on your shoulders.


If you receive one or more Form 1099s (required when a client or customer pays you at least $600 per year), you should be paying your income taxes every quarter: Typically, April 15, June 15, September 15, and January 15 of the following year. If you don't not pay enough of the four estimated tax installments, you may be subject to penalties.


The good news is that you have more deductions at your disposal because of your business-related expenses, such as payment processing fees, equipment, and possibly even a home-office deduction. Your income taxes are based on profits after deducting business-related expenses.


The key for gig workers is keeping accurate records of your revenue and expenses.


Contact Morris and Associates today for a FREE consultation to discuss a good record keeping system and what deductions you may be eligible for.




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Charitable Giving Planning


The right tax strategy can help you determine how much to give, what asset to give, and when to give to your favorite charities while ensuring you receive full tax advantages you're entitled to.


Through charitable giving, you can defer or reduce federal income tax, capital gains, and even estate taxes. Did you know you can donate long-term appreciated assets like bonds, stocks or real estate to or eliminate capital gains and take an income tax deduction for the fair-market value, for example?


Charitable giving tax strategies can be complex, especially to reduce capital gains and estate planning.


Contact Morris and Associates today for a FREE consultation regarding a plan that makes the most sense for you.



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Education Funding Approaches


Education Funding Approaches


The cost of a college education is at an all-time high, so planning ahead by setting up a savings plan is always a smart play, which there are multiple options available these days:


  • 529 Plans
    Your contributions are tax-deductible, and you'll be able to skip taxes on earnings if you spend them on qualified education expenses. There are no income or contribution restrictions.
  • Coverdell Education Savings Account (ESA)
    Similar to a 529 Plan. Also allows you to skip and deduct taxes as long as funds are used for qualified costs. But Coverdells are reserved for families earning less than $220,000 and you can only contribute $2,000 per student a year until they reach 18.
  • Roth IRAs
    Contributions to a Roth IRA can be withdrawn tax- and penalty-free. Earnings can also be withdrawn before 59 and a half if used for educational expenses for a child or grandchild.


Contact Morris and Associates today for a FREE consultation to discuss the best approach to saving for one's education and to ensure you receive the maximum benefit for contributing to an educational savings plan.


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Get Answers to Your Tax Questions