Tax Planning

It’s Not Only What You Earn, It’s What You Get To Keep

Our tax planning experts can support you in navigating the complexities of the US tax code. We provide guidance on current and prospective tax regulations to assist you through life decisions that have tax implications.


Tax Guidance Includes:

  • Maximizing tax-deductible retirement contributions
  • Planning for tax-free income in retirement
  • Using lower-income years (“gap years”) between working and taking RMD distributions
  • Tax-loss harvesting to minimize taxable income
  • Selling an investment property tax-efficiently
  • Diversifying concentrated stock portfolios tax-efficiently
  • Maximizing tax benefits of charitable donations
  • Strategies to tax-efficiently pass estate to heirs

BakerAvenue’s Enrolled Agents

The Enrolled Agent license is the highest tax credential awarded by the IRS. Our experts have obtained this elite certification, and bring with them experience from the Big 4 accounting firms, law firms, and banking. They are committed to ensuring that the advice you receive is timely and tailored to your circumstances.

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Tax Related White Papers
Lower Rates:
  • Fully utilize and lower rates for capital gains vs. ordinary income
  • Know when and how to avoid net investment income
  • Hold stocks for qualified dividends that are taxed at preferential rates
  • Employ tax-loss harvesting to match realized gains and losses
  • Stay ahead of legislative developments, such as the new administration’s potential proposal

Apply Deductions:
  • Fully apply deductions to pension plans and retirement accounts
  • Deploy rollover and conversion strategies for tax-free income
  • Use gap years after retirement to recognize gains and convert to Roth IRA.
  • Donate to charity using qualifying charitable distributions from IRAs to satisfy RMD requirements
  • Utilize triple-exempt bond investments for tax-free income in retirement

Transfer Taxes:
  • Monitor impact of transfer taxes (estate and gift) on current estate value
  • Fully use current ultra-high exemption amounts
  • Review legislative developments as they affect your estate, e.g., the new administration’s potential proposal to decrease estate and gift tax exemptions
  • Consider use of specialized trusts to remove assets from taxable estates, favor selected charities, and pass wealth to heirs
  • Review diversification schedule in light of proposed changes to capital gains tax rates
  • If stock positions include significant incentive stock options, estimate alternative minimum tax (AMT) exposure when exercising options and use the taxes through AMT credit off-set
Tax Related 5 Minute Money Clips

What’s New on the Tax Front: Tax Legislation changes signaled by the Administration.

Income and Capital Gains Tax:

  • Increase in the top Ordinary income tax bracket to 39.6% - effective 1-1-2022.
  • Introduce the top Ordinary income tax bracket earlier – $450K MFJ replacing $628K. $400K Single, replacing $528K. Effective 1-1-2022.
  • Replace the 20% LT Capital Gains tax band with a 25% band. Effective for disposals after 13th September 2021. Disposals prior to the effective date would be taxed at 20%.
  • WITHDRAWN - Tax Capital Gains as Ordinary income at top marginal tax bracket (39.6%) where taxable income exceeds $1 million.

Retirement Planning:

  • Prohibits all Employee after-tax contributions in qualified plans – Effective from 1-1-2022
  • Prohibits all after-tax IRA contributions from being converted to Roth accounts (“Back-Door” Roth technique), regardless of income level. Effective for distributions, transfers and contributions made after 12-31-2021.

Estate and Gift Tax:

  • Reduce Unified Estate and Gift Tax Lifetime Exemption Amount by 50% from $11.7M – Effective 1-1-2022.
  • Limit the tax advantages of Grantor Trusts for estate planning. Transfers to a grantor trust would no longer be effective for Estate and Gift tax purposes. Effective from the “date of enactment”. Potentially affects IDGTs, GRATs, SLATs, QRPTs and Life Insurance Trusts.
  • WITHDRAWN - The proposal to end the “step-up in basis” on inherited assets appears to have been withdrawn.

Corporate Tax:

  • Increase the corporate tax from the current 21% rate to 26.5%.

      Source: Tax Foundation: Joe Biden 2020 Proposed Tax Plan

        BakerAvenue Tax Preparation Services

        For our premier clients*, we also provide tax preparation services. Our licensed Enrolled Agents will sign and file your Federal and State returns and provide guidance on any tax matter throughout the year and will:

        • prepare and file your 1040 tax return and any associated state return.
        • calculate your quarterly Estimated Tax payments
        • file Foreign Bank and Financial Report (FBAR) and Foreign Account Tax Compliance Act (FATCA)
        • file an extension for your 1040

        *Minimum $5MM Assets Under Management with BakerAvenue.

        To learn more about our tax planning services, contact our experts.

        When you need to discuss your personal and professional life transitions, BakerAvenue is here for you.
        The legal and/or tax information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice. It does not involve the rendering of personalized investment advice and should not be construed as an offer to buy or sell, or a solicitation of any offer to buy or sell securities. All information is subject to change. This material contains references to concepts that have legal, accounting, and tax implications, and is not intended as legal, accounting or tax advice as Baker Avenue Asset Management LP is not engaged in the practice of law, tax or accounting. Accordingly, any information in this document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Revenue Code. Information presented is believed to be factual and up-to-date, and BakerAvenue cannot guarantee that such information is accurate, complete, or timely. Laws of a particular state or laws which may be applicable to a particular situation may have an impact on the applicability, accuracy, or completeness of such information. Federal and state laws and regulations are complex and are subject to change. Changes in such laws and regulations may have a material impact on pre-and/or after-tax investment results. BakerAvenue makes no warranties with regard to such information or results obtained by its use and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult your own attorney and/or accountant for advice regarding your particular situation.