The Correlation Between Taxes and Painting
I’m sure at one point we have all painted a bedroom, kitchen, or even an entire house. As you know, the key is to properly tape off the areas you do not want the paint to get on, put tarps on the floor, and, the most important part, pick out the right color. If the above is completed, then the painting job should go off without a hitch, because you have PLANNED properly!
Taxes are identical to paintings. If planned out properly, you can rest assured that you maximized your deductions, maybe sold some stock that has been producing a loss for quite some time, and analyzed if you should be maximizing your retirement contributions. These are just the tip of the iceberg when it comes to tax planning.
We as individuals are considered cash basis taxpayers, meaning, for the most part, you can deduct expenses when you pay them. Once the new year has started, it’s already too late to go back and spend money for the prior year.
This is why planning is so critical.
If you wait until February, March, or even April of next year to analyze your tax situation, you’ve already missed the bus. Tax planning is even MORE critical if you have a business. Once the year has passed, there is little we can do to maximize your tax deductions.
For more information on tax planning and if it is a good fit for you, please reach out to Draus and Associates, Inc. at 224-985-3000 or visit our website at www.drausandassociates.com. Fill out our contact form to schedule a complimentary analysis of your prior year’s returns as well as receive a quote for us to work with you!
