E83: End of Year Tax Planning (with Kim Padgitt)
December 9, 2020
The end of the year means taxes are on our minds. What can we do to be as tax-efficient as possible before the end of the year? Kim Padgitt from The Tax Advantage LLC has some insights for us.
Guest: Kim Padgitt
Business: The Tax Advantage LLC
Website: https://taxadvantagellc.com
Bio: Kim West Padgitt is the President and Managing Principal of The Tax Advantage, LLC. Kim started the firm out of a desire to help those under-served by typical accounting and tax firms. She graduated from Indiana Wesleyan with a degree in Business Management and Accounting, sat for and passed the Enrolled Agent exam in 1991, and has been an Enrolled Agent for 25 years. She has accumulated a wealth of knowledge and information in the areas of taxation and managerial accounting. Kim grew up surrounded by entrepreneurs and has been one all of her life. Kim understands the challenges of running a small business. Small business owners work hard and never have enough time to do everything they need to get done. Her goal is to continue to help the startup as well as the established business.
End of Year Tax Planning
- Kim’s background
- Tips for choosing a tax Practitioner
- Qualifications
- Service Fees
- Never sign a blank return
- Review before you sign
- Ensure the Practitioner signs the return and includes their PTIN
- Things to consider before 12-31-2020
- Decide if you are going to DIY or hire someone (once that is decided)
- Organize a list of your needed tax documents use the prior year to get started
- Set up a paper file or a digital folder to put all docs in
- Bunch deductions
- RMD you can skip it, should you?
- Tax-loss harvesting
- Max out your IRAs / 401(k) / Solo 401(k)
- Business owners: buy stuff that you’re going to buy anyway
- Company vehicle?
- Lastly, IRS notices do not ignore them
- Closing question: what does “wealth” mean to you?
Intro/outtro music credit: eccentric - I Can Show You [Argofox Release] by Argofox