Tax planning should be about more than filing a return.

In-House CPAs. Ongoing Tax Strategy.

Analog Capital Partners has multiple CPAs available to work directly with clients.

Our tax capabilities include both planning and preparation, including many common individual, business, estate and trust filings.

Depending upon the client's circumstances, our team can assist with:

• Individual taxation - Form 1040 and related planning

• Business taxation - Partnerships, LLCs, S corporations and C corporations

• Trust taxation - Trust income-tax filings and related planning

• Estate taxation - Estate returns and planning coordination

• Gift taxation - Gift-tax reporting and planning

• Entity creation - LLC formation and tax-election coordination

• International tax - Cross-border coordination for appropriate U.S.-based clients

• Strategic tax planning - Multi-year planning integrated with wealth management

Tax preparation and advanced tax-planning services are optional and separately priced from wealth management.

Every new ACP client can meet with our tax professionals to identify planning opportunities and determine whether bringing tax services inside the ACP family-office relationship makes sense.

The Opportunity Is Often Years Ahead

One of the largest tax mistakes we see occurs when planning begins too late.

A retiree may discover at age 73 or 75 that required minimum distributions are creating substantial taxable income.

But by then, many of the best planning years may already have passed.

A better process starts much earlier.

Consider someone retiring at age 60.

Between retirement and the beginning of Social Security and required minimum distributions, there may be a valuable period in which taxable income is relatively low.

Those years can potentially be used for strategic Roth conversions.

Instead of allowing tax-deferred assets to continue compounding until large mandatory distributions arrive later in retirement, we can model whether voluntarily recognizing income earlier produces a better lifetime outcome.

That is fundamentally different from asking:

“How much tax can we avoid this year?”

Our question is:

“What sequence of decisions is expected to produce the best after-tax outcome over the client's lifetime?”

Multi-Year Roth Conversion Planning

Roth conversions are one of the most important tax-planning tools available to many affluent retirees and pre-retirees.

But the strategy is not simply to convert as much as possible.

The amount converted in any given year can affect:

• federal income-tax brackets;

• capital-gains taxation;

• Medicare premiums;

• taxation of Social Security;

• future required minimum distributions;

• estate planning;

• future heirs;

• portfolio liquidity.

ACP models Roth-conversion strategies within the client's broader financial plan using RightCapital.

We can project future income, tax brackets, retirement withdrawals, Social Security and required minimum distributions to evaluate conversion opportunities over many years.

For some clients, that means deliberately creating a larger planning window between retirement and the beginning of Social Security.

For others, it means spreading conversions across multiple tax years rather than reacting only when RMDs begin.

A simplified example

Consider a couple retiring at approximately age 60 with more than $5 million of assets, including significant tax-deferred retirement savings.

Rather than automatically beginning Social Security immediately, the financial plan can evaluate whether delaying benefits creates several lower-income years.

Those years can then potentially be used for Roth conversions.

By modeling the strategy across a 10- or 15-year period rather than one tax return at a time, the objective becomes reducing lifetime taxation, not merely the current year's liability.

For clients with large traditional retirement accounts, the difference can be substantial.

Individual results depend upon tax rates, account balances, investment performance, future tax law and many other variables. Illustrations should not be interpreted as guaranteed tax savings.

Required Minimum Distribution Planning

RMD planning and Roth-conversion planning are closely connected.

A large tax-deferred retirement account may look attractive during the accumulation years.

But eventually, the government requires distributions.

Those distributions can increase taxable income whether the client needs the money or not.

That can affect:

• marginal tax brackets;

• Medicare premiums;

• Social Security taxation;

• capital-gains rates;

• taxation of surviving spouses;

• the tax characteristics of inherited accounts.

Waiting until RMDs begin can severely limit the planning options available.

We therefore model future required distributions years in advance.

The objective is to determine whether today's tax decisions can reduce tomorrow's forced taxable income.

Social Security Is a Tax Decision Too

When to begin Social Security should not be evaluated in isolation.

For some retirees, delaying Social Security may create additional years of relatively low taxable income.

That can increase the amount of traditional retirement assets that can potentially be converted to Roth accounts before other income sources begin.

The Social Security decision therefore interacts with:

Retirement date → taxable income → Roth conversions → future RMDs → Medicare → estate planning

At ACP, these are modeled as one interconnected decision rather than five separate recommendations.

Tax-Aware Investment Management

Tax planning does not stop once the financial plan is complete.

It continues inside the portfolio.

Our investment and tax professionals can coordinate around:

Tax-loss harvesting

When an investment is trading below its cost basis, realizing that loss may create an asset that can offset other gains.

We evaluate tax-loss opportunities throughout the investment process rather than viewing them exclusively as a year-end exercise.

Capital-gain management

Capital gains are sometimes worth realizing.

A portfolio should not become dangerously concentrated simply because selling would generate a tax bill.

We evaluate the tax cost alongside the investment and risk-management benefit.

Rebalancing

Rebalancing taxable portfolios can create gains.

But refusing to rebalance can allow the portfolio's risk characteristics to drift substantially from its intended design.

ACP considers both.

Our objective is not to minimize taxes at any cost.

It is to maximize the probability of the best after-tax financial outcome.

Withdrawal sequencing

Where retirement spending comes from matters.

Depending upon the plan, withdrawals may be coordinated across:

taxable accounts → traditional retirement accounts → Roth accounts

rather than simply taking money from whichever account is most convenient.

The appropriate sequence can change over time based upon tax brackets, markets, RMDs, charitable giving and estate objectives.

Tax Strategy for Charitable Giving

For charitably inclined families, the method of giving can be nearly as important as the amount.

ACP can evaluate strategies including:

Donor-advised funds

A donor-advised fund can allow a family to make a larger charitable contribution in a high-income year while distributing grants to charities over time.

Appreciated securities

Donating appreciated securities may provide advantages over selling an investment, paying capital-gains tax and then donating cash.

Investment and tax planning therefore need to be coordinated before the security is sold.

Qualified charitable distributions

For eligible IRA owners, qualified charitable distributions may allow charitable gifts to be made directly from an IRA while potentially satisfying part of the client's required minimum distribution.

These strategies are most effective when charitable, tax, investment and estate decisions are considered together.

Tax Planning for Business Owners and Founders

Business owners frequently face a second tax system layered on top of their personal finances.

ACP's in-house tax capability can help coordinate both.

Areas of planning may include:

• business entity selection;

• LLC formation;

• tax elections;

• compensation structure;

• business and personal cash flow;

• retirement-plan considerations;

• estimated taxes;

• business tax filings;

• capital-gains planning;

• potential business sales;

• estate planning;

• qualified small business stock.

QSBS and Section 1202 Planning

For eligible founders and investors, Qualified Small Business Stock under Internal Revenue Code Section 1202 can create potentially significant federal capital-gains tax benefits.

But QSBS planning must often begin well before a liquidity event.

Eligibility can depend upon factors including the type of corporation, timing of the stock issuance, the company's activities, asset levels and how the shares were acquired and held.

That means founders should not wait until a sale is imminent to ask whether their stock qualifies.

ACP can help founders and their other professionals evaluate QSBS considerations early in the company's life and maintain appropriate tax documentation as circumstances evolve.

The potential tax benefit can be substantial enough that early planning deserves serious attention.

Entity Formation and Business Tax Strategy

Entity structure can materially affect how a business owner is taxed.

ACP's CPAs can assist clients with the formation of entities such as LLCs and coordinate appropriate tax elections based upon the circumstances.

But entity selection should not occur in a vacuum.

We consider the owner's:

• business economics;

• compensation;

• other income;

• retirement goals;

• estate plan;

• expected business duration;

• potential sale;

• personal financial plan.

The goal is not simply to create an LLC.

It is to create an appropriate structure for the family's broader financial situation.

Estate Planning and Tax Planning Should Be Connected

Estate planning can have significant income, gift and estate-tax consequences.

Tax planning can therefore influence strategies involving:

• lifetime gifting;

• charitable planning;

• trust structures;

• estate-tax exposure;

• basis considerations;

• family entities;

• wealth-transfer strategies.

For sufficiently complex families, planning may include consideration of structures such as:

GRATs — Grantor Retained Annuity Trusts
SLATs — Spousal Lifetime Access Trusts
ILITs — Irrevocable Life Insurance Trusts
Dynasty trusts
Charitable structures

ACP can help model the financial and tax consequences of these strategies and coordinate implementation with the appropriate legal professionals.

Once structures are established, our CPAs can also help address relevant ongoing tax-compliance and filing requirements.

This continuity matters.

The estate strategy should not disappear into a binder after the documents are signed.

Cross-Border and International Tax Coordination

Affluent families increasingly have financial lives that cross national borders.

A U.S.-based family may own foreign assets.

An executive may have worked in several countries.

A spouse may hold another citizenship.

A business owner may have overseas interests.

ACP has tax professionals with international experience and can provide or coordinate tax planning for appropriate situations involving:

• foreign asset holders;

• expatriates;

• dual citizens residing in the United States;

• international business interests;

• cross-border taxation;

• U.S. reporting obligations.

International tax can become highly jurisdiction-specific, so the appropriate scope depends upon the countries, entities and tax issues involved.

Why In-House Tax Expertise Matters

Traditional wealth management frequently looks like this:

Financial Advisor
↓ sends recommendation to
Client
↓ explains it to
CPA
↓ may consult with
Estate Attorney

The client becomes the project manager.

And each professional operates with different information.

ACP's model is designed differently:

Investment Management
↕
Financial Planning
↕
Tax Planning & Preparation
↕
Estate Planning

The professionals can work from the same financial plan.

The portfolio manager knows what the tax strategy is trying to accomplish.

The CPA understands why the investment portfolio is structured the way it is.

The financial planner can model the long-term effect of the tax decision.

And the estate strategy can be evaluated alongside both.

That is the advantage of a family-office-style model.

Not simply having more professionals.

Having professionals who actually work together.

A Tax Return Looks Backward. Tax Planning Looks Forward.

Tax preparation is necessary.

But by the time a return is being prepared, most of the financial decisions creating that year's tax liability have already occurred.

The investment was already sold.

The income was already earned.

The Roth conversion either happened or it didn't.

Social Security already began.

The charitable gift was either structured efficiently or it wasn't.

That's why tax planning must take place before the return is prepared.

We believe wealthy families should use both:

Tax preparation to accurately report what happened.

and

Tax planning to influence what happens next.

Who We Typically Help

ACP's tax-planning capabilities can be particularly valuable for:

Pre-retirees

Individuals approaching retirement frequently have some of the largest planning opportunities because decisions involving retirement date, Social Security, Roth conversions and future RMDs are still ahead of them.

Retirees

Retirees may benefit from coordinated withdrawal sequencing, charitable planning, RMD management, Roth conversions and capital-gains planning.

High-Net-Worth and Ultra-High-Net-Worth Families

As wealth increases, taxes increasingly intersect with trusts, gifting, estate planning, concentrated investments and multigenerational wealth transfer.

Founders and Business Owners

Entity structure, business taxation, QSBS, equity compensation and potential liquidity events create additional planning opportunities.

Executives

RSUs, stock options, concentrated positions and variable compensation can create significant tax-planning considerations.

Tax Planning Is Optional. Coordination Is the Opportunity.

Clients are not required to use ACP for tax preparation or advanced tax-planning services.

Those services are separately priced.

But for families who choose to bring tax work inside ACP, the primary advantage is coordination.

The same firm can understand:

the portfolio

the financial plan

the tax return

the business

the estate strategy

and

the family's long-term objectives.

That reduces the amount of interpretation required between outside professionals and creates more opportunities for planning to occur before decisions become irreversible.

The Analog Capital Partners Approach

Our philosophy is straightforward:

1. Look forward, not just backward.

Tax planning should anticipate future brackets, RMDs, retirement income and estate needs.

2. Optimize lifetime taxes, not one year's return.

The lowest tax bill this year is not necessarily the best long-term strategy.

3. Integrate investments and taxes.

Portfolio decisions and tax decisions frequently affect one another.

4. Start early.

Many of the most valuable strategies lose effectiveness once the taxable event has already occurred.

5. Coordinate the professionals.

Investment management, financial planning, taxation and estate planning should operate as one system.

Build a More Tax-Efficient Financial Plan

If you have accumulated meaningful wealth, the question is not simply whether your tax returns are being prepared correctly.

The more valuable question may be:

Is anyone proactively modeling how to reduce my family's taxes over the next 10, 20 or 30 years?

Analog Capital Partners provides integrated tax planning and tax preparation alongside investment management, financial planning and estate planning for high-net-worth families.