What Is 'Tax Planning'?

Tax planning is the analysis of a financial situation or plan from a tax perspective, with the purpose of ensuring tax efficiency. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Term of the Day | Words to Know Tax Planning Tax planning is the analysis of a financial situation or plan from a tax perspective. The purpose of tax planning is to ensure tax efficiency. Through tax planning, all elements of the financial plan work together in the most tax-efficient manner possible. Tax planning is an essential part of a financial plan. Reduction of tax liability and maximizing the ability to contribute to retirement plans are crucial for success. Read More » Related to "Tax Planning" What Are the Best Ways to Lower Taxable Income? Paying taxes is an unavoidable obligation each year, but individuals and business owners can take advantage of various strategies for tax savings. Read More » 6 Strategies to Protect Income From Taxes Taxes are difficult to avoid, but there are many strategies you can find to help ward them off. Read More » SPONSORED BY INVESCO The Complete Guide to ETFs ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. Learn More » 8 Essential Tips for Retirement Saving Whether you're a saver or a financial advisor who wants to give clients a leg up, these 8 tips are essential for financial planning. Read More » Related Definitions Financial Planner A financial planner is a qualified money-management professional who helps clients meet their financial goals. Read More » Tax-Loss Harvesting Tax-loss harvesting is the selling of securities at a loss to offset a capital gains tax liability. Read More » Tax Shelter A tax shelter is a vehicle used by taxpayers to minimize or decrease their taxable incomes and, therefore, tax liabilities. Read More » Taxable Income Taxable income is the amount upon which the tax an individual or a company owes to the government is based. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2020, Investopedia, LLC, All Rights Reserved | Privacy Policy