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LSDefine

Simple English definitions for legal terms

tax planning

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A quick definition of tax planning:

Tax planning is when someone tries to pay the least amount of taxes possible by using the tax law. This means looking at their money situation and finding ways to pay less tax. They might do this by timing when they get paid, when they buy things, or by choosing certain retirement plans or investments. Tax planning is legal and is not the same as tax evasion or fraud. It's just a way to control how much tax someone has to pay so they can keep more of their money.

A more thorough explanation:

Tax planning is a legal way for taxpayers to pay the least amount of taxes possible by analyzing their financial situation. It involves manipulating the timing of income, purchases, selecting retirement plans, and investing accordingly to maintain the taxpayer in a certain tax bracket in order to reduce the amount of taxes to be paid.

These examples illustrate how taxpayers can use tax planning to legally reduce their tax liability. By delaying the sale of an asset, the taxpayer can avoid paying taxes on the capital gains in the current year and potentially pay a lower tax rate in the next year. Contributing to a retirement plan reduces taxable income, which can lower the taxpayer's tax bracket and reduce the amount of taxes owed. Claiming deductions for charitable donations or business expenses can also reduce taxable income and lower the taxpayer's tax liability.

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General

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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