OCR Text |
Show Want to pay loss tOKGO! Plon non! accurate tax projections pro-jections can be prepared in minutes based on any individuals in-dividuals set of tax facts. Computer equipment and sophisticated accounting and tax programs bring a new dimension for planning tax strategies to their clients. Now a person can sit at a typewriter type keyboard and enter information about a taxpayers projected income in-come and deductions into the computer and in seconds a high speed printer produces the essentials of his tax return with tax computations computa-tions all complete and accurate. ac-curate. Everyone who has the opportunity op-portunity to adjust the tim -ing of Income receipt or deduction de-duction payments can add Important flexibility to their tax planning capabilities by using this pre planning tool. Copies of old Federal Income In-come tax returns are good guides for this year's re turns and also are records of financial development. A good deal of information informa-tion may be transferred from old copies, especially for those whose financial situation situ-ation stays almost the same from year to year. Being able to refer to completed returns could also be helpful to taxpayers who might. later wish to amend their returns; Income average; aver-age; or who are called In for a tax examination. Taxpayers claiming the energy credit might also find copies of completed returns useful in figuring the amount of unused credit which they can carry over to later tax years. Such copies will also aid the taxpayer who claims the energy credit In determining deter-mining the amount by which they must reduce the basis of the home, if the energy saving items added were added to the basis of the home. Most taxpayers can reduce re-duce or defer income taxes many times In substantial amounts, if they take the necessary actions before the end of the year reports B. E. Olson, CPA, Partner and head of the Tax Department of Smith, Kennard and Olson, Ol-son, a Salt Lake City based CPA firm. Examples of important tax minimizing techniques Include In-clude offsetting short term capital gains with capital losses In the same year, timing the receipt of a bonus or dividends, timing the sale of an asset, cashing in certain cer-tain appreciated government bonds and timing deduction payments such as contributions, contribu-tions, taxes and interest. Complexities in the laws now make the accurate manual man-ual projection of the tax effects ef-fects of alternative transactions trans-actions difficult, time consuming, con-suming, error prone, and costly. |