Most business professionals worry about the amount of money they pay in taxes each year. This is an on-going responsibility that can fluctuate annually, based on specific tax mitigation strategies. Oftentimes, professionals end up paying more than required in taxes, due to a misunderstanding of their obligations and a lack of knowledge on legal tax avoidance options. That’s where Michigan Retirement Group can help. Here is an outline of four basic strategies available to professionals.
Tax Reduction
Tax reduction is mostly achieved through deductions and credits allowed by the IRS. An example of a tax reduction is contributions to IRAS and other retirement accounts. Specific types of charitable giving also apply to this category of tax mitigation. Working with a trusted specialist can help retirees understand tax reduction principles.
Tax Exemption
A tax exempt product or service produces a return that is not subject to taxation. An example would be a tax-exempt security such as a municipal bond. Such bonds can product a capital gain when sold for a price greater than the original purchase cost. They can also realize a capital loss if sold for less than the purchase price.
Tax Deferral
Taxation deferrals are achieved through the purchase of investments that grow in value over time, and whose growth in value is not tax-applicable. Cash value life insurance and deferred annuities are specific examples of tax deferred products. Income from annuities is taxed upon withdrawal. Deferred gain through life insurance policies is not taxed to the beneficiary.
Tax Conversion
Tax conversion is a strategy through which a person can convert income-producing assets. For example, a person might liquidate income producing stocks or bonds in favor of assets that are more growth rather than dividend oriented. Oftentimes, this type of strategy is not suitable to those who are risk averse due to the inherent risks associated with growth stocks.
Michigan Retirement Group are experienced in all areas of tax mitigation and avoidance. Working with the company on a tax avoidance strategy offers the following benefits:
A Qualified CPA Reviewing All Options
Michigan Retirement Group employ a fully qualified CPA who has the experience to analyze the client’s portfolio and review their taxation options. It’s a company team that has great experience mitigating challenging tax issues for high net worth individuals.
Experience Team Offering Actionable Advice
Oftentimes other companies offer advice to clients based on what’s best for their company in terms of fees. Michigan Retirement Group takes a neutral approach to the process and ensures that staff members’ only incentive is to provide clients with the best available tax strategy for their future requirements.
Constant Communication for Near-Instant Responses to Enquiries
Taxation issues can be exceptionally complicated. So when clients have questions, the team at Michigan Retirement Group is always available on the phone or via email to respond to questions from clients. Clients are never left wondering about their personal financial security. It’s in prudent, professional hands with Michigan Retirement Group.
Experience the difference years of taxation expertise can have on your personal finances. Contact the experts at Michigan Retirement Group for a one-on-one consultation with a trusted expert.