First Quarter Tax Strategies

The first quarter is a good time to plan the year ahead.  What does your docket look like?  What cases do you plan to pursue?  What expenses will you incur in the coming year?  Do you foresee any large cases settling in the coming year, or do you need to prepare for a lean year?

It is also a good time to look back at the prior year.  Are you satisfied with the amount of money you were able to set aside and invest?   Did you pay too much in taxes?  Did you maximize the value of your practice in the prior year?

If you are like most attorneys, you are so busy dealing with the day-to-day issues that you don’t have time to take stock and plan for the year ahead.  You end up “taking what the year gives you” and paying too much in taxes while saving less than you had hoped.

Optcapital’s deferral program provides attorneys and firms a vehicle to invest fees on a pre-tax basis, which lowers your currently taxable income and increases the amount you have invested (because fees are invested pre-tax.) Establishing a plan is like opening a savings account.  It doesn’t cost you anything, doesn’t obligate you to do anything, but gives you a good place to invest in the event you have excess income.

The first quarter is a great time to talk about setting up a plan.  You may not have any fees to defer right away, but as the year progresses and you have a better idea of what your income and expenses will be for the year, you are better prepared to manage your taxes and investments more effectively.

If you would like to learn more about how you or your firm can utilize Optcapital’s CaR® Trust Program, please email, and someone from our Law Firm Team will respond.