Tax Planning
& Research

The offices of Jacobsen & Wachterhauser provide professional tax planning and research services, which is the process of analyzing our client’s affairs with the intention of minimizing tax liability and maximizing their tax return. Our mission is to keep our clients paying the least amount of money in taxes, and to help them capitalize on after-tax cash flows.

When preparing a tax plan for a client, we follow effective tax planning principles:
(i) shape the plan to meet the client’s needs and desires
(ii) inspect the client’s previous accounting records
(iii) take into consideration the effect of future events, using sound legal advice for the basis of the plan
(iv) support the plan with a sensible and effective business purpose
(v) prevention of carrying a good plan too far
(vi) create a flexible plan if modification is needed
(vii) compare the new plan with existing factors in decision making
(viii) research to whether a similar plan has previously been publicized as unsuccessful (i.e. in court cases with similar circumstances where the IRS’s position was found favorable)
(ix) take maximum risk exposure into consideration to protect the client (i.e. the rejection of the tax plan by the IRS and the potential impact it may have on the client)
(x) take effect of timing into consideration (i.e. such as a tax credit or law which makes in more beneficial to take a deduction in one year as opposed to another).

Our office doors are always open to assist you with tax planning. Visit us today, our offices are centrally located in the Camelback of Phoenix, to meet with a CPA in person, click here to contact us and for directions.

Some ways to reduce individual tax liability:

Several options for achieving a lower individual tax liability exist. For example, a taxpayer can setup a pension, or profit sharing plan, such as a 401k or IRA for their use, or if a business owner, for employees. Full-time employees who have worked for the business owner for more than 3 years, and are over the age of 22, would be included in this plan, which allows for the taxpayer to reduce up to $13,000 from his/her salary annually.

Another option is to make a charitable donation, or better yet, donate an appreciated piece of property. By donating the asset(s) rather than selling it, taxpayers can avoid paying capital gains, and can deduct the full market value of the asset(s).

Additional Taxation Information:

• Unstated Interest
  Definition of Unstated Interest: Interest which must be determined and the sale price lowered by this amount when interest is not stated in an installment agreement or the interest rate applied is less than the applicable rate. […]
• Vacation Home
  Definition of Vacation Home: The Tax Code places limitations on taxpayers who rent their residences or vacation homes to others during part of the tax year. The limitations may result in scaling down of expense deductions for the taxpayer. […]
• Vested Benefits
  Definition of Vested Benefits: Pension benefits belonging to the taxpayer. […]
• Wash Sale
  Definition of Wash Sale: A Wash Sale is when a purchase of substantially similar stock or other form of securities within 30 days before or after the sale of the similar stock or security at a loss. A taxpayer cannot claim a wash sale loss; instead, the loss is added to the basis of the [...] […]
• Welfare to Work Credit
  Definition of Welfare to Work Credit: A tax credit for employers that have hired workers from welfare rolls. The Welfare to Work Credit is claimed on Form 8861. […]
• Widow (Widower)
  Definition of Widow (Widower): A woman (man) who hasn’t remarried subsequent to the death of her husband (his wife). Additional Widow (Widower) Information: […]
• Withholding Allowances
  Definition of Withholding Allowances: A credit available to employers who hire employees from certain destitute groups. The credit is claimed using Form 5884. Additional Withholding Allowances Information: […]
• Work Opportunity Credit
  Definition of Work Opportunity Credit: A credit available to employers who hire employees from certain destitute groups. The credit is claimed using Form 5884. Additional Work Opportunity Credit Information: […]
• Worksheet
  Definition of Worksheet: Documentation of compiled information that is usually not sent to the IRS with a tax return. Additional Worksheet Information: […]
• Worthless Securities
  Definition of Worthless Securities: A loss is permitted for a security that becomes worthless during the year. The loss is considered to have occurred on the last day of the year. Special rules apply to securities of affiliated organizations and small business stock. Additional Worthless Securities Information: […]