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Tax Planning

Tax planning beats tax preparation every time.

Tax preparation is backward-looking — we file what already happened. Tax planning is forward-looking — we change what's about to happen. That's where real tax savings come from.

(561) 278-1199

In short

Tax planning at KDM Accounting means meeting with you before year-end (and often quarterly) to identify and execute specific tax-saving moves — entity structure, retirement contributions, timing of income and expenses, capital gains harvesting, charitable strategies, and more. Clients typically save 4-10x the planning fee in the first year.

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Why planning beats preparation

By April 15, the year is locked in. You can't retroactively contribute to a 401(k), convert to an S-Corp for last year, or harvest a loss that already happened. Tax planning moves the decisions to when they can still matter.

What a planning engagement looks like

Typical annual cadence for a business-owner client:

  • January: Review prior year's return for carry-forward items + set strategy for current year
  • April-May: Mid-year check-in based on Q1 results
  • August-September: Fall planning session — entity optimization, retirement funding, equipment purchases
  • November: Year-end session — identify + execute specific moves before Dec 31
  • December: Follow-up on execution; preliminary tax estimate

Core levers we work on

  • Entity structure optimization (LLC vs. S-Corp vs. C-Corp — when to convert)
  • Retirement plan selection + funding (Solo 401(k), SEP, Defined Benefit)
  • Reasonable compensation analysis for S-Corp owners
  • QBI (Qualified Business Income) deduction optimization
  • Section 179 + bonus depreciation timing
  • Income + expense timing (cash vs. accrual accounting)
  • Tax-loss harvesting in investment accounts
  • Charitable giving strategy (DAFs, bunching, appreciated securities)
  • Roth conversion opportunities in low-income years
  • Estate + gift tax planning

For high-earning individuals

High-W-2 earners often believe they have no tax planning options. Not true. The levers are different (you can't change when income is received) but real savings exist:

  • Backdoor Roth conversions
  • Mega backdoor Roth (if employer 401(k) allows after-tax contributions)
  • HSA optimization as a stealth retirement account
  • Deferred compensation plans (if offered)
  • Charitable giving with appreciated securities vs. cash
  • Donor-advised funds for income-concentration years
  • Stock option / RSU timing

For retirees and near-retirees

The retirement transition is the highest-impact tax planning window of most clients' lives:

  • Roth conversion sequencing (pre-RMD years)
  • Social Security claim timing optimization
  • Retirement-account withdrawal order (taxable → tax-deferred → Roth)
  • RMD planning starting at age 73
  • Qualified Charitable Distributions from IRAs
  • Medicare IRMAA surcharge planning
  • State residency documentation (Florida advantage)

Scope

What's included — and what isn't.

No surprises mid-engagement. Here's exactly what's in the standard scope, and what we'd bill separately or refer out.

Included

  • Annual or quarterly planning sessions (calendar set at engagement)
  • Entity structure review and S-Corp election analysis where applicable
  • Reasonable-salary documentation for S-Corp owners
  • Retirement-plan selection and funding strategy
  • Section 179 and bonus-depreciation timing analysis
  • Year-end tax projections and "what-if" scenario modeling
  • Email and phone access for time-sensitive questions year-round

Not included

  • Tax return preparation — see Tax Preparation
  • Bookkeeping or accounting work — see Small Business Accounting
  • Investment management or specific security recommendations
  • Legal document drafting (operating agreements, trusts, wills)

By April 15 the year is locked. Tax planning moves the decisions back to when they can still matter — that's where the real savings live.

— KDM Accounting

FAQ

Questions we hear about tax planning.

When should I start tax planning?
Ideally before December 31 of the year you want to affect. Planning in January is too late for most moves on the prior year. For business owners, we recommend at least one planning session per year (fall), ideally two (spring + fall).
How much can tax planning actually save?
Depends on your income, structure, and current position. For a business owner with $200K net income who isn't yet on S-Corp or funding retirement, first-year savings of $15K-$40K are typical. For a high-W-2 earner already doing most things right, marginal improvement of $3K-$10K is common.

Related services

Often paired with tax planning.

Tax Preparation

Tax preparation for individuals and businesses in Boca Raton and Fort Lauderdale. Federal and state returns, IRS e-file, year-round support.

Small Business Accounting

Monthly bookkeeping, financial reporting, and CFO-level advisory for South Florida small businesses. Clean books, real insight.

Estate & Retirement Planning

Estate and retirement tax planning for South Florida families. Retirement projections, estate tax analysis, and legacy strategies.

Ready for a straight answer on your taxes?
Start with a free consultation.

Call, email, or book online. We respond within one business day — every time.

(561) 278-1199

KDM Accounting

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