Benjamin Franklin is credited with stating that “…but in this world nothing can be said to be certain, except death and taxes”. You probably do not need to be reminded that taxes are an inevitable and recurring part of life, yet there are tax-saving opportunities we often see overlooked in the absence of careful planning. At SoundView, we have several stated objectives for effective tax planning:

Be proactive and shape transactions in advance
Take the long view and “smooth” anticipated taxable income where possible
Plan based on the tax law we have, recognizing it will change over time
Prioritize wealth-maximization, not tax-minimization

In order to accomplish these goals and provide value in the area of tax planning, we have developed a comprehensive, annual process consisting of the following steps:

Assist with tax preparation – While we do not prepare tax returns, we work closely with our clients and their tax preparers to ensure they have the information and documentation needed to file complete and timely returns each year.
Review prior-year tax return – We request copies of filed tax returns each year and then review and summarize those returns to ensure accuracy based on our knowledge of each client’s financial situation.
Project future taxes – Based on our understanding of each client’s cash flow situation and portfolio activity, we do our best to reasonably estimate income and tax liability for the upcoming tax year(s).
Identify planning opportunities – Taking into account changes to tax law and each client’s personal situation, we consider and recommend various strategies with the goal of minimizing taxes and increasing wealth over time.

We have been reviewing 2019 tax returns and are putting together 2020 projections. In the near future, you can expect an email from your planning team with a high-level summary of your tax situation as well as a summary report uploaded to your ShareFile folder.

Please let us know if you expect significant changes to your financial situation that will impact your taxes this year or in the coming years. We will be sure to incorporate any expected changes to our analysis and planning recommendations before our next meeting with you.