Keystone Tax Preparation Services

Our goal is to provide comprehensive holistic financial planning.  

We know our clients will find it convenient that we are able to provide all of the investment related tax documents to their tax preparer.  

As your Financial Representatives, we have a comprehensive understanding of your finances and by working together with your tax preparer you can feel confident that all areas of your financial plan are being addressed.  We will work together to help create a tax strategy that puts you in the best position to meet your long term financial goals.

Tax Reduction strategies should be a critical part of your financial plan and you should be working with your tax and financial advisor on incorporating them at the start of each year. 

Here are three common tax reduction strategies:

1. Consider long-term capital gains

   Part of tax-efficient investing is considering how taxes will affect the buying and selling of assets. 

   The tax you pay when selling an asset, whether it’s a stock, jewelry, or real estate, is dependent on how long you’ve held the asset. If you’ve had an asset for more than a year before selling, it’s considered a long-term capital gain and therefore is taxed according to graduate thresholds. In other words, the tax rate for long-term capital gains can be 15% or lower. Whereas short-term capital gains (assets sold before that one-year mark) are taxed at the same percentage as your normal income. This means you could be paying up to 37% in taxes for short-term capital gains.

2. Consider Maxxing out your tax-advantaged retirement accounts

   Retirement accounts can act as great long-term tax-sheltered accounts. There are two different kinds of retirement accounts, tax-deferred and tax-exempt. Tax-deferred accounts are your traditional accounts where contributions are made pre-tax, like a traditional 401(k). Tax-exempt accounts include Roth IRAs and Roth 401(k)s where contributions are made post-tax.

   Regardless of which account you’re contributing to, it’s in your best interest to max out your yearly contributions and to take advantage of those tax breaks, not to mention any matching programs your employer may offer.

    3. Consider Contributing to a Health Savings Account (HSA)

A health savings account is a great way to take advantage of your pre-tax income while potentially lessening the impact of health care costs.  You can then use this money, tax-free, to  pay for eligible expenses including deductibles, copays, prescriptions, and countless other medical costs. 

We believe that working with your tax preparer on Tax Reduction Strategies and also on Tax Distribution and Planning Strategies, will ensure that all areas of your financial plan are working towards achieving your financial goals.