Tax Planning Myrtle Beach

In South Carolina, certain items and services are exempt from state sales tax, included but not limited to:

1. Groceries: Unprepared food items for home consumption are exempt from state sales tax, but may be subject to local taxes.
2. Prescription medications: Prescription drugs and prosthetic devices are exempt from sales tax.
3. Some agricultural products: Certain agricultural products, such as feed, seed, and fertilizer, are exempt from sales tax when used for commercial farming purposes.
4. Residential electricity and fuel: Electricity, natural gas, and fuel oil used for residential purposes are exempt from sales tax.
5. Textbooks: Textbooks used in schools and colleges are exempt from sales tax.
6. Certain services: Some services, such as professional services (e.g., legal, accounting, and medical services), are not subject to sales tax in South Carolina.

It’s important to note that while these items are exempt from state sales tax, they may still be subject to local taxes. Consulting with a tax professional can help you better understand how these exemptions apply to your specific situation in South Carolina.

Tax planning is one component of what we do. We don’t charge separately for it. We are holistic financial advisors who overview your entire financial plan, while staying mindful of the tax implications of each decision, and planning ahead to attempt to minimize your lifetime tax liability. We charge a percentage fee based on the amount of assets that we manage, we believe that the services we provide go much beyond the standard market services.

At Riverbend Wealth Management, we prioritize transparency and value by working with your CPA to help you understand the upfront cost so you feel confident in the potential return on your investment in our services.

There are several potential options to consider with the aim of minimizing taxes. The intention of these strategies is to improve the likelihood of a favorable outcome throughout your entire life. Planning ahead and approaching strategies in a mindful manner can be key. 

First up, we have tax deferral—it’s like pressing pause on certain taxes today to pay them down the road, ideally when you’re in a lower tax bracket. This approach can help manage your current tax liabilities and work to reduce life time taxes.

Another strategy to consider is tax loss harvesting. This involves selling investments at a loss to offset capital gains or ordinary income, potentially reducing your overall tax liability. By realizing losses during years when your income is higher, you may be able to potentially minimize the tax impact of investment gains and help optimize your portfolio over the long term.

And last but certainly not least, we’ve got tax deductions and credits—essentially identifying opportunities to possibly reduce your taxable income or receive a tax credit.

These strategies form the foundation of effective tax planning, and working with a financial professional can help you navigate the complexities and make informed decisions based on your unique circumstances. At Riverbend Wealth Management, our goal is to provide the knowledge and resources necessary for our clients to make the most of these potential opportunities and work towards their financial objectives.

Imagine tax planning as your roadmap through the ever-changing landscape of taxes, designed to help you reduce your lifetime tax burden. It’s the process of analyzing your financial situation or plan from a tax perspective, with the goal to improve tax efficiency. This means understanding various tax laws and strategies to potentially reduce, defer, and manage your tax liabilities. It’s not just about saving on taxes this year; it’s about helping you establish an approach that could utilize your financial health in the long run.

At Riverbend Wealth Management, we strive to turn the complexity of taxes into clear, actionable strategies that can work for you.

The key difference between tax planning and tax preparation lies in their focus and timing.

Tax planning, which is a service offered by Riverbend Wealth Management, is a proactive, forward-looking process. It involves analyzing a client’s financial situation and exploring strategies that may help minimize tax liabilities and strive to optimize financial outcomes in the future. This can include considering tax-efficient investment strategies, examining the timing of income and expenses, and identifying potential opportunities for tax deductions or credits. Tax planning is an ongoing process that may require regular review and adjustment based on changes in financial circumstances and tax laws.

On the other hand, tax preparation is the process of compiling and filing tax returns, typically with the assistance of a Certified Public Accountant (CPA). CPAs are tax professionals who are qualified to prepare and file tax returns on behalf of individuals and businesses. They work to ensure that tax returns are accurate, complete, and filed in compliance with current tax laws. Tax preparation is a reactive process that takes place after the tax year has ended, focusing on reporting income, deductions, and credits to determine tax liability or refund.

At Riverbend Wealth Management, our focus is on tax planning as part of comprehensive financial planning services. While we do not prepare tax returns or provide direct tax preparation services, the aim is to work closely with clients and their CPAs to explore investment strategies and financial plans that are tax-efficient and aligned with overall financial goals.

Navigating tax management without a knowledgeable professional by your side can be like trying to navigate a maze blindfolded. Tax professionals are like the key to a treasure chest; they can potentially unlock strategies and insights that aim to reduce your tax liability over time. They can also work to help you identify opportunities to possibly reduce your tax liability.

So, are they worth it? That’s for you to decide. With their guidance, you may have a better understanding of your tax situation. 

First, a tax consultant can bring clarity to the bewildering world of tax codes, helping you translate them into actionable strategies. They are there to help you identify tax strategies aimed at helping you benefit from deductions and credits you may be entitled to. Plus, they offer personalized advice tailored to your unique financial situation, helping you make informed decisions regarding your tax situation.