Tax Planning NJ: Strategic Advisory Services from a CPA

Tax Advisory: Proactive Strategy Beyond Annual Filing

Tax advisory goes beyond preparing returns—it’s about making tax-smart decisions throughout the year that compound into significant savings over time. At Monaco CPA, we partner with business owners, executives, and high-income individuals to develop and execute tax strategies that align with their financial goals. Clients gain the advantage of proactive tax planning, maximizing deductions and minimizing liabilities to take full advantage of available tax benefits.

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Staying compliant with government regulations and evolving tax laws is essential—our strategic tax advisory services help clients minimize government-related liabilities and risks while ensuring full compliance.

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Based in Livingston, NJ and serving clients nationwide, Monaco CPA is a CPA firm providing the sophisticated tax planning typically reserved for large accounting firms, delivered with the personal attention and accessibility of a boutique practice. Our team assists clients with personalized strategies tailored to their unique needs.

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We emphasize a collaborative team approach, working closely with clients to assist them throughout the year and ensure optimal tax outcomes.

 

What Is Tax Advisory?

Tax advisory is ongoing strategic counsel focused on minimizing taxes legally through planning, structuring, and timing decisions. Our tax advisory process is a structured, step-by-step approach that ensures every aspect of your financial situation is reviewed, leading to better outcomes and greater peace of mind. Unlike tax preparation (which looks backward at the prior year), tax advisory looks forward to shape future outcomes.

 

Effective tax advisory addresses questions like:

• Should my business be an LLC, S-Corp, or C-Corp?

• How much should I pay myself as salary vs. distributions?

• When should I make major equipment purchases?

• How can I time income and deductions across years?

• What’s the tax impact of acquiring another business?

• How do I minimize taxes when I eventually sell my company?

 

While tax preparation is essential for compliance, effective tax preparation is a crucial part of comprehensive tax planning services. It helps minimize tax liabilities, maximize deductions, and ensures you remain compliant as part of a proactive, year-round strategy.

 

We help you answer these questions with analysis, not guesswork.

 

Our Tax Advisory Services

Entity Structure Analysis

Your business structure directly affects your tax burden and plays a critical role in your overall financial strategy. Choosing the right entity structure can significantly enhance tax efficiency, helping you maximize savings and support long-term business goals.

 

We analyze:

• LLC vs. S-Corporation vs. C-Corporation pros and cons

• Single-member LLC taxation options

• Multi-member LLC operating agreement tax provisions

• S-Corp election timing and qualification requirements

• C-Corp considerations (QSBS eligibility, retained earnings)

• Partnership special allocations and basis considerations

 

Entity structure analysis is especially important for small businesses seeking to optimize tax outcomes and ensure compliance as they grow.

 

For existing businesses, we evaluate whether restructuring makes sense given current operations and future plans.

 

S-Corporation Optimization

S-Corps require careful management to maximize benefits and achieve key goals like minimizing liabilities and leveraging available tax breaks:

• Reasonable Compensation Analysis: Setting shareholder-employee salary to satisfy IRS requirements while optimizing self-employment tax savings

• Distribution Timing: Planning distributions around income levels and cash needs

• Basis Tracking: Monitoring shareholder basis to ensure distributions remain tax-free

• Payroll Tax Planning: Coordinating with retirement plan contributions

 

We ensure your S-Corp is working as efficiently as possible.

 

Qualified Business Income (QBI) Deduction

The Section 199A deduction can reduce effective tax rates on pass-through income by up to 20%. Maximizing this deduction requires:

• Understanding income thresholds and phase-outs

• Managing W-2 wage and property basis limitations

• Evaluating specified service trade or business (SSTB) status

• Planning income levels to stay below threshold when possible

• Considering C-Corp election impact on QBI availability

• Identifying and leveraging relevant tax credits to further reduce overall tax liabilities

 

A deep understanding of the tax code is essential to ensure accurate compliance and to maximize the QBI deduction.

 

We model scenarios to determine optimal approaches for your situation.

 

Transaction Planning

Major transactions deserve tax analysis before execution. Strategic transaction planning not only addresses immediate tax implications but also considers the impact on your investments and supports your long-term business growth.

• Business Acquisitions: Stock vs. asset purchase implications, Section 338(h)(10) elections

• Business Sales: Capital gains optimization, installment sales, earnout treatment

• Real Estate Transactions: Like-kind exchanges (1031), opportunity zones, depreciation recapture

• Partnership Transactions: Section 754 elections, distribution planning

 

Getting structure right upfront avoids costly corrections later.

 

Retirement Plan Strategy

Tax-advantaged retirement savings reduce current taxes while building wealth:

• Traditional vs. Roth contribution analysis

• Solo 401(k) establishment and contribution optimization

• SEP-IRA vs. SIMPLE IRA vs. 401(k) comparison

• Defined benefit plan considerations for high earners

• Mega backdoor Roth strategies

• Required Minimum Distribution (RMD) planning

 

Retirement planning is essential for securing your financial future and ensuring stability as your life circumstances change. We coordinate retirement planning with overall tax strategy.

 

Income and Deduction Timing

Controlling when income is recognized and deductions taken creates flexibility:

• Accelerating or deferring billings around year-end

• Timing major equipment purchases for Section 179/bonus depreciation

• Prepaying deductible expenses in high-income years

• Deferring income to years with expected lower rates

• Managing capital gains timing and loss harvesting

 

Year-end tax projections guide these decisions, but effective tax planning NJ should be approached year-round, not just at tax time, to maximize opportunities and adapt to changing circumstances.

 

Estate Planning and Trusts

Estate planning is a vital component of a comprehensive tax strategy, especially for high earners, business owners, and individuals with significant assets. At Monaco CPA, we recognize that effective estate planning goes far beyond drafting documents—it’s about minimizing your tax burden, protecting your wealth, and ensuring your assets are distributed according to your wishes, all while navigating the complex tax laws that impact estates in New Jersey and across the country.

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Our estate planning services are designed to help clients reduce tax exposure and maximize the transfer of wealth to chosen beneficiaries. We work closely with you to understand your unique financial situation, long-term goals, and family dynamics, then develop a personalized tax plan that addresses your needs. By leveraging our deep expertise in the latest tax laws, income tax, estate tax, and gift tax regulations, we help you structure your estate to minimize tax liabilities and ensure full tax compliance.

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Charitable giving can be a powerful strategy within estate planning to minimize tax liabilities, protect family assets, and facilitate tax-efficient wealth transfers. Monaco CPA helps clients incorporate charitable giving into their estate plans through trusts and gifting strategies, allowing you to support causes you care about while reducing estate and income taxes. We advise on the use of charitable remainder trusts, donor-advised funds, and direct gifts to maximize tax benefits and ensure your philanthropic goals align with your overall wealth transfer objectives.

 

Tax Planning for Individuals

For individuals in New Jersey, smart tax planning is the foundation of financial well-being. With the right strategies, you can reduce your tax burden, maximize deductions, and take advantage of valuable tax credits. A personalized tax plan considers your unique goals—whether that’s building wealth, planning for retirement, or supporting charitable causes. Estate planning is also a critical component, ensuring your assets are protected and efficiently transferred to your beneficiaries. By working with an experienced tax accountant, you can stay ahead of the latest tax laws, plan for capital gains, and make tax-efficient investment decisions. Effective tax preparation is not just about compliance; it’s about minimizing liabilities, avoiding penalties, and making the most of every opportunity for savings. In a state like New Jersey, where tax laws can be particularly complex, having a proactive plan in place helps you navigate each tax year with confidence and clarity.

 

How We Deliver Tax Advisory

Quarterly Planning Sessions

For advisory clients, we meet quarterly (or monthly for complex situations) to:

• Review year-to-date financial performance

• Update annual tax projections

• Discuss upcoming decisions with tax implications

• Adjust strategies based on changing circumstances

• Ensure estimated tax payments are on track

 

Ad-Hoc Consultation

Between scheduled meetings, we're available for:

• Quick questions about proposed transactions

• Review of deal terms with tax implications

• Time-sensitive planning opportunities

• Response to unexpected events

 

Modeling and Analysis

When decisions require analysis, we provide:

• Multi-scenario tax projections

• Entity structure comparison models

• Transaction impact summaries

• Written recommendations with supporting analysis

 

Integration With Tax Preparation

Tax advisory naturally flows into tax preparation. As your advisor, we know your situation intimately when return preparation time arrives—no re-education needed. This proactive approach streamlines the preparation of tax returns and ensures accuracy.

 

Audit Representation and Resolution

Facing an IRS audit can be stressful, but having expert audit representation and resolution services on your side makes all the difference. At Monaco CPA, we provide comprehensive support for individuals and businesses in New Jersey who are navigating the audit process. Our team understands the intricacies of the tax code and works diligently to protect your interests, negotiate with the IRS, and resolve disputes efficiently. We focus on minimizing penalties and ensuring that your rights are upheld throughout the process. With our audit representation services, you gain peace of mind knowing that experienced professionals are advocating for you, helping you avoid costly mistakes and maintain compliance with all tax regulations. Whether you’re dealing with a routine inquiry or a more complex audit, Monaco CPA is committed to achieving the best possible outcome for your situation.

 

Who Benefits From Tax Advisory

Growing Business Owners

As revenue increases, so do tax planning opportunities—and mistakes become more costly. Strategic tax advisory supports long-term growth by helping business owners establish the right financial structures and tax strategies for sustained success. Advisory ensures you’re capturing opportunities and avoiding pitfalls.

 

High-Income Professionals

Physicians, attorneys, consultants, and executives with significant income benefit from sophisticated planning beyond basic preparation.

 

Real Estate Investors

Property acquisitions, dispositions, and portfolio management involve substantial tax considerations requiring ongoing attention.

 

Business Buyers and Sellers

M&A transactions benefit enormously from tax-focused structuring—often worth multiples of advisory fees.

 

Multi-Entity Operators

Owners with multiple businesses or investment entities need coordinated tax management across structures.

 

Why Choose a CPA Firm

Selecting a CPA firm for your tax planning services offers significant advantages, especially in a state like New Jersey with its complex tax laws and frequent regulatory changes. A CPA firm brings deep expertise in tax planning, ensuring that you remain compliant with all tax obligations while minimizing your tax burden. At Monaco CPA, we provide personalized attention and tailored strategies that address your specific needs—whether you’re an individual, a business owner, or managing a growing estate. Our team stays ahead of the latest tax laws, helping you avoid penalties and capitalize on every available opportunity for savings and growth. With a CPA firm guiding your financial decisions, you benefit from a proactive approach to taxation, long-term planning, and the confidence that comes from working with trusted professionals. Let us help you achieve your financial goals and secure your future in New Jersey’s dynamic tax environment.

 

The Value of Proactive Planning

Consider this: a business owner earning $400,000 annually who elects S-Corp status with optimized compensation might save $15,000 or more per year in self-employment taxes alone. Retirement plan contributions could reduce taxable income by another $50,000+, generating additional five-figure savings. Multiply these optimizations over a career, and the compounding effect is substantial. Smart tax planning is the foundation for these long-term savings, ensuring every opportunity for tax efficiency is identified and leveraged. That’s why successful business owners invest in tax advisory—the returns dwarf the cost.

 

FAQs: Tax Advisory

How is tax advisory different from tax preparation?

Tax preparation reports what happened last year. Tax advisory shapes what happens this year and beyond through proactive planning.

 

When should I start tax planning?

Planning is most valuable when done early—beginning of the year or before major transactions. However, year-end planning can still yield significant benefits.

 

How much can tax planning really save?

Savings vary by situation, but five-figure annual savings are common for business owners. Major transaction planning can save substantially more.

 

Do I need tax advisory if my situation is straightforward?

If you're a W-2 employee with simple affairs, probably not. If you own a business, have significant investment income, or face major financial decisions, advisory likely pays for itself.

 

Get Strategic Tax Guidance

Don’t leave money on the table. Schedule a consultation with a trusted tax accountant serving New Jersey to discuss how proactive tax planning can benefit your situation.

 

Phone: (862) 320-9554
Email: Greg@MonacoCPA.CPA
Website: www.MonacoCPA.cpa

 

© 2025 Gregory Monaco, CPA LLC. All Rights Reserved.