Life is all about choices we make. We can make a choice to work harder than most, earn more money, save it and then spend as we see fit. Or we can choose to go through our life being very laid-back and relaxed, even if it means not earning as much money. Or anything else in between. In any case, almost all human beings are interested in knowing whether their income can sustain them and their families in a short- and long-term.
This natural curiosity has laid the foundation of our tax planning service. As Benjamin Franklin once said, “By failing to prepare, you are preparing to fail”. We at Davidoff & Associates understand that our ideas can be turned into actions if we like what these actions could do for us. So, if you are thinking about how to make or spend money, chances are your decisions will always be impacted by tax considerations.
As a part of our tax planning service, we can build various “what-if” scenarios for you where a change in one variable usually triggers a change in the outcome. You are encouraged to seize initiative here and come up with as many “what-ifs” as you can, while our model will display results that may or may not lead to an action. For example, you may tell us to reflect the sale of your investment property in a year when your other income is lower, and then in a year when your other income is higher. The results will obviously be different, if all else is held equal.
We prepare “what-if” scenario analysis for such situations as sale of investment property, withdrawals from retirement plans, rental activities, income or loss from partnerships and S Corporations, self-employment income or loss, sale of stock options, and more. If you think you have more than one potential way to execute a transaction, you should talk to us prior to actually executing it. We can run a “what-if” scenario analysis and give you rather accurate forecasts that will help you make the most educated and informed decision.