Tax planning is the process of analyzing your monetary situation and preparing for upcoming tax events. Proper tax planning helps you with efficient tax payments and to plan for your expenditure and saving ratio. Tax planning is necessary to plan your financials in the most tax-efficient manner.
Avant Tax, the Texas based tax service provider and financial counselor provides you with the best and most tax-efficient accounting for taxation service in Texas, with its team of tax experts to help you with maximum benefits out of your tax payments.
Obviously, the simplest method to benefit maximum out of your taxes is to limit your taxes. We help you to make tax-smart investments and reduce the IRS each year and convert your taxes into savings. Apart from traditional tax saving methods, we help you with a wide range of attractive tax saving plans that will help you save more without reducing your income, without increasing your expenses, and by taking advantage of tax credits. Our tax planning solutions bring you a combined package of multiple actions and benefits that makes you a tax-smart investor.
Avant Tax helps you be tax-smart with our accounting for taxation service in Texas by breaking down the entire scenario into two processes.
At Avant Tax, we have broken down the paradigm of Tax Planning into two major heads:
Personalized services:We get to know you and your family so we can provide you with solutions based on an intimate knowledge of your needs.
A holistic approach
Our comprehensive approach is what makes the difference. In addition to tax planning and preparation, our Advisors team comprising of CPA.s EAs, Financial Planners, & Attorney’s takes care of everything from investments and estate planning to insurance solutions. We do the heavy lifting so that you don’t need to worry about securing your family’s financial future.
AVANT SELECT PLUS
Qualified Opportunity Zone Tax PlanningTax-free investment through Qualified Opportunity Zone Funds (QOFs): Opportunity funds aid in the development of the areas facing economic hardships while also offering taxes and rewards to investors. This in return results in significant improvements to the properties in which they invest.
How a Qualified Opportunity Fund (QOF) Can DeferCapital Gains TaxesIf you’re selling a business interest, real estate, or other highly appreciated property, you could get hit with a substantial capital gains tax bill. One way to soften the blow—if you’re willing to tie up the funds long-term—is to “roll over” the gain into a qualified opportunity fund (QOF).
What is a QOF?A QOF is an investment fund, organized as a corporation or partnership, designed to invest in one or more qualified opportunity zones (QOZs). A QOZ is a distressed area that meets certain low-income criteria, as designated by the U.S. Treasury Department. Currently, there are more than 9,000 QOZs in the United States and its territories. QOFs can be structured as multi-investor funds or as single-investor funds established by an individual or business. To qualify for tax benefits, at least 90% of a QOF’s funds must be QOZ property, which includes:
What are the benefits?If you recognize capital gain by selling or exchanging property, and you reinvest an amount up to the amount of gain in a QOF within 180 days, you'll enjoy several tax benefits: The only way to obtain these benefits is to first sell or exchange a capital asset in a transaction that results in gain recognition. You then would reinvest some or all of the gain in a QOF. You can't simply invest cash.
You or your heirs will eventually be liable for taxes on some or all of the original gain. Consider ways to avoid those taxes, such as holding the original property for life or doing a tax-free exchange.
How do you report QOF gains?In February 2020, the IRS issued guidance on reporting gains from QOFs. It details how to report the deferral of eligible gains and how to include those gains when the QOF investment is sold or exchanged. Taxpayers who defer eligible gains from such property (including gains from installment sales and like-kind exchanges) by investing in a QOF must report the deferral election on Form 8949, Sales and Other Dispositions of Capital Assets, in the deferral tax year. Taxpayers selling or exchanging a QOF investment must report the inclusion of the eligible gain on the form.
Offshore Jurisdiction Tax PlanningAn offshore jurisdiction is a low or no-tax country with corporate laws that maximize financial privacy and minimize corporate regulatory interference for both individuals and corporations.
A World-Class Tax Benefits Package
In the U.S. Virgin Islands, unique tax benefits translate to a better bottom line. The USVI’s tax program is not only one of the most competitive tax benefits packages within the Caribbean but across the globe. The USVI offers a tax program that is fully sanctioned by the U.S. government and Internal Revenue Service.
Through the Economic Development Commission’s (EDC) tax program, qualifying companies are eligible for the following tax benefits, among others:
Paying Taxes in the U.S. Virgin IslandsThe U.S. Virgin Islands uses a mirror system of taxation, also known as the “Mirror Code,” meaning that USVI taxpayers pay taxes to the Virgin Islands Bureau of Internal Revenue ("BIR") generally to the same extent as U.S. taxpayers would under the Code to the U.S. Internal Revenue Service.
To learn more about the EDC Program and other tailored tax benefits found in the Territory, through initiatives such as the Hotel Development Act and Enterprise Zones, visit our Incentives page.
All the Benefits of Being Part of the United StatesAs an unincorporated United States Territory, the U.S. Virgin Islands has all the benefits of being a Caribbean location with key U.S. benefits.
This unique territory status enables St. Croix, St. John, St. Thomas, and Water Island to utilize U.S. currency, courts, and flag protection. Local affairs are led by the Governor and Legislature. Being within a U.S. jurisdiction also provides the following benefits to companies operating in the islands:
Conservation Easements Tax PlanningUnder this strategy, the owner or investor of the property give up one or more of their rights in that property for conservation purposes. while still retaining the rest of their rights. Giving up a right in property (land or buildings) to a qualifying organization such as a land trust creates an “easement” which not only delivers a public benefit, but also provides the owner(investor) with substantial tax savings.
Through this strategy, Investors in a partnership or another pass-through entity i.e. LLC, S-Corp owning land or building become eligible for a charitable contribution deduction for donation of a conservation easement.