TaxCure Blog

The point of tax planning is to reduce your tax liability, by as much as possible, within what the law allows. A lot of people like to talk in terms of loopholes, but the reality is that our tax code is complex, and that means that there is a lot of room for tax planning, and reducing what you owe.

Not too long ago, the IRS began publicizing its Taxpayer Bill of Rights. The point of this move by the IRS is to let taxpayers know that they have rights when it comes to dealing with the IRS and concerns about their taxes, especially if the IRS is performing an audit or if there is some other issue with your tax situation.

It’s a common refrain: I wish my taxes didn’t pay for that!

Earlier this year, a marine exploration company recovered a great deal of gold — worth more than $1 million — from a ship that went down in 1857. When you find that kind of treasure, you better believe that the IRS wants its cut. Indeed, any treasure you find, or any other unexpected windfall or prize you end up with, is considered income, and the IRS expects you to report it on your tax return and then pay taxes on it.

One of the most effective ways to avoid tax-time surprises is to play your tax strategy throughout the year. This includes your investment tax strategy. Remember that investment income is often taxed differently than other income, so it makes sense to include that in your strategy for the coming year. Here are some things to keep in mind: