What Is Tax Planning?

We’ve all “done our taxes”. Gather up documents, send them in to your person or software program, maybe you write a check or maybe you receive a check. But have you ever had a conversation with a professional about the long-term tax burden of being in certain investments? How a move you make today could affect your taxes in 5 years? Has anyone ever told you that certain charitable contributions you’re making you thought weren’t deductible could be with a Donor-Advised Fund under certain circumstances? These are insights learned during Tax Planning, also called Tax Observations. Our own Clay Dunkle CFP®, AIF® makes his debut on It's All Money to discuss one of his favorite parts of the business, and analyze the subtle nuance of the phrase “It's not what you make that matters, it's what you keep that counts.” Full video available on our YouTube Channel: https://youtu.be/ZzXenWLy6gY Learn more about Sonoma Wealth here: https://sonomawealthadvisors.com/ Book your Wealth Analysis right here: https://sonomawealthadvisors.com/book-your-wealth-analysis CHAPTERS 0:00 The $20 Tax Question (Cold Open) 0:35 Meet Clay Dunkle: His Podcast Debut 1:56 Tax Planning vs. Tax Service: What's the Difference? 5:53 What a Real Tax Planning Review Looks Like 9:17 It's Not What You Make, It's What You Keep 10:04 Why Good Tax Help Is Getting Harder to Find 14:53 Case Study: Meet John Doe 16:55 The Backdoor Roth IRA Strategy 18:53 Donor-Advised Funds Explained 20:42 Annuity Distributions and Taxes 23:00 Home Sale Cost Basis and Capital Improvements 25:33 Closing Thoughts and Next Steps References: https://www.irs.gov/taxtopics/tc701 https://www.irs.gov/forms-pubs/about-form-8606 https://www.fidelitycharitable.org/guidance/charitable-tax-strategies/bunching-charitable-donations.html