At Venac, our tax plan is an essential part of an individual or business financial plan.

Our tax plan reduces tax liability, increases net savings, which can be diversified into long term investments.

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What is tax planning

Tax planning is the analysis of a financial situation or plan to ensure that all elements work together to allow you to pay the lowest taxes possible.

A plan that minimizes how much you pay in taxes is referred to as tax efficient.

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Why is tax planning so important?

• Maximize tax deduction and credits
• Compliance with federal and state tax laws
• Minimize tax liability
• Increase overall financial health
• Increase net savings and grow your business or retirement savings
• Reduce tax penalties

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At Venac Consulting, we transform your business savings through our insightful tax planning models in order to reduce your personal and business tax liabilities and increase your net cash savings.

A tax gain or loss is the difference between the sale proceeds of an investment and its cost basis, which is usually the total initial purchase price including commissions, fees, and reinvestments, and may be adjusted for factors like sales, returns of principal, and corporate actions. Therefore, if the value of an investment rises from the time of purchase to the time of sale, it results in a capital gain. Conversely, if the value falls within that period, it leads to a capital loss.

Empowering businesses through creative tax planning models

What is tax-loss harvesting?

Tax-loss harvesting occurs when you sell investments at a loss to offset capital gains. For instance, if you have a $10,000 taxable gain from one investment, you could sell another investment at a $10,000 loss to completely neutralize it.

Be mindful that the "wash-sale rule" imposes a restriction on tax-loss harvesting, disallowing the recognition of a loss if you, your spouse, or a related party acquires a security that is almost the same, within 30 days before or after its sale. This means the loss is deferred, not eliminated, until those new securities are disposed of. Given this rule, it's important to evaluate how tax-loss harvesting aligns with your overall investment strategy, considering that the long-term growth potential of the investment could be more advantageous than a reduction in your capital gains tax for the current year.

Note that tax-loss harvesting is subject to a limitation known as the "wash-sale rule," which prevents you from recognizing a loss if you or your spouse (or a related party) buy a “substantially identical” security within 30 days before or after the sale (i.e., the loss is not permanently gone but is deferred until the new securities are sold). Because of this rule, you should consider how tax-loss harvesting will affect your investment strategy, as the benefit of holding on to that investment (and letting it grow over time) may outweigh the benefit of lowering your capital gains tax bill for a given year.

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What is tax-gains harvesting?

For the year 2024, the threshold for single filers is $47,025 and for married couples filing jointly, it's $94,050. Let's say you and your spouse have a joint income of $100,000 in 2024. With the standard deduction of $29,200, your taxable income would be $70,800. This means you can realize up to $23,250 in net gains without owing any federal tax, as it stays within the 0% tax bracket for capital gains.

In 2024, this threshold is $47,025 for single filers and $94,050 for married couples filing jointly. So, let’s say that you and your spouse file jointly and earn $100,000 in 2024. After taking the standard deduction of $29,200, your taxable income is $70,800. The maximum amount of capital gains that can be taxed at the 0% rate is $94,050, which means you can realize $23,250 in net gains without paying any federal

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