year end planning

Can anyone share the experience on year end planning? Do you charge fee for that Or it depends on the complexity of the analysis? If for fee, how to decide the fee level? Based on hours or percentage of tax return fee? Do you guys do year end planning for each client? When usually do you start to contact clients for that? What types of clients do you focus most on?
Any input will be greatly appreciated!

I charge my normal hourly rate for year end tax planning/projections.
W2 people don't really need tax planning usually.
Self employed and S corp clients/partnerships are your primary target area.
Tax about where they are for the year, how much they might owe based on how things currently stand, talk about equipment purchases, depreciation/179, or retirement options that might be able to save them tax, figure the expense or retirement, calculate the new net profit and the new taxes.

If you can show them how much money you are saving them in taxes, it gets easier to charge them.
If you spend a bunch of hours and can't save them anything in taxes other than to avoid the underpayment penalty, you aren't really providing them much visible value, which makes it hard to sell a decent invoice for your time invested.

After October 15th deadline is a good time to go through the files, identify the clients that could benefit from your services.
Start contact them in mid-late October for Nov-Dec tax planning. You want to give them at least 2-3 weeks to arrange financing to purchase equipment, etc. Good way to keep a little revenue rolling in before next tax season hits as well.

Thank you for the suggestions! Very helpful!!

I generally do the tax year end planning meetings between October and Thanksgiving. This year is going to be very challenging because most of those meetings involve small business owners and are face to face either in my office or at their place of business. I am still trying to work out the logistics before the mailer/emails are sent out soon.

In the past, I have done hourly, but am now toying with the idea of $XXX for up to one or two hours of year-end planning billable time, and time beyond that will be billed at the prevailing hourly rate.

I believe it would generate more revenue for me by putting a price floor on the service that will shift the value proposition thereby avoiding the 15-30 minute consults, which would mostly be the W-2 clients with no material year-over-year changes. I think those situations are best covered by a general e-blast -- i.e. "general year-end tax planning ideas" like examining charitable giving, IRAs (ask me first -- or better -- wait until we prepare the tax returns), 529 plans, etc.

I've been doing hourly for tax planning but I am thinking of establishing a fixed fee for X number of hours and then have a tiered structure for any time beyond that. I hate billing hourly, clients hate it too. I am likely to hold off on that approach, though, until 2021.

I see tax planning articles based on the proposition that Biden/Harris Ticket will Win the election.
We know 2 major changes in tax policy under Biden have been advanced.
1.) The Capital Gains tax rate of 20% will be repealed and go to 39.6% - and possibly the 3.8%NIT will remain.
2.) The Social Security Limit of $137,700 ($17,075 2020 limit) will be repealed and the tax applied to all earned income - without limit, "un-cap social security" is a familiar chant at far left protests.
Given those 2-possible tax results - tax planning before those changes are enacted, are compelling for clients who
hold significant Capital Assets; and, for high income earners. Think of your Physician tax clients who are making north of
$500,000 annually. The tax impact is huge. They deserve to be "alerted" to what's about to happen to them.
If ignored - they will will really be disappointed in their tax advisor.

I predict lots of trading activity post Nov 3 to lock in CG at the current rate. Obviously all this selling is going to tank the market by year end, but then it may be a buying opportunity for the right situation

I already have a CPE course booked for 11/9 that will discuss POTENTIAL tax changes based on who wins Presidency...

Do you think we will know the winner by 11/9? Ah hiv ma doots.

2.) The Social Security Limit of $137,700 ($17,075 2020 limit) will be repealed and the tax applied to all earned income - without limit, "un-cap social security" is a familiar chant at far left protests.

I think he wants to create a "donut hole" of sorts. No SS tax from the current phase out limit through $400k or so, then SS tax comes back into play.

One thing is for certain...If things change radically again like they did under the TCJA...I'm raising my fees.

Do you think we will know the winner by 11/9? Ah hiv ma doots.

OH dear...I sure hope so, but admittedly my confidence is low based on both candidates. I associate Biden with Gore and Trump with...Trump.

I predict lots of trading activity post Nov 3 to lock in CG at the current rate. Obviously all this selling is going to tank the market by year end, but then it may be a buying opportunity for the right situation

I think the only way we're going to see major tax reform is if either the donkeys or the elephants take the presidency as well as both houses. We'll see, but I'm not really worried about major tax reform in 2021.

Cornerstone, I posted the above before I had heard of the SCOTUS decision on South Carolina mail-in ballots. So I daresay there is less chance we will have to wait to find out. There is a similar case in NC going through federal and state courts. If the SCOTUS ruling applies to that, we will know the NC result - right or wrong - by then. NC's senate race may well decide who holds power there and, of course, it is likely to come into play in the Electoral College.

I predict lots of trading activity post Nov 3 to lock in CG at the current rate. Obviously all this selling is going to tank the market by year end, but then it may be a buying opportunity for the right situation

I think the only way we're going to see major tax reform is if either the donkeys or the elephants take the presidency as well as both houses. We'll see, but I'm not really worried about major tax reform in 2021.

I don't predict major tax reform right after election, but I do predict trading activity that may impact the market right after the elections. My prediction is that the Senate stays Republican narrowly but the House and Presidency goes Democrat based on the current standings.

Thank you all for the very helpful inputs!
I took a CPE yesterday on CPA Academy about year end planning, which I think is a pretty nice summary on major areas to focus on including a Biden Administration. There is an archived version of it on the website for now if anyone is interested in listening to it. The title is "YEAR-END PLANNING IN 2020 INCLUDING PLANNING FOR A BIDEN ADMINISTRATION".