Tax planning is an essential year-round service Erock Tax provides to its clients. We specialize in helping our clients take full advantage of the current tax law. As we work with each client, we take time to understand their unique tax situation and then apply relevant tax legislation to help them save money.
Here is one way Erock Tax Planning benefits clients
Say, for example, you are in a higher tax bracket (greater than 15%) and you hold a large amount of company stock options. If you sell the stock options immediately after exercising, you pay ordinary income tax on the sale of those stock options, which will be at a higher tax rate. If you chose to exercise your stock options and hold the stock for one year before selling, you would pay a long-term capital gains tax rate of 15% on the stock sale instead of the higher ordinary income tax rate. Ultimately, this type of tax plan can result in thousands of dollars in tax savings for clients who plan ahead.
(Note: the 15% long term capital gains rate is set to expire at the end of 2012, so act by December 31st, 2011 to ensure favorable tax treatment!)