Financial Advisors

Solutions For Being More Efficient With Your Taxes

The joys of paying taxes are fun and exciting -- said NO ONE, EVER. With Tax Day having just passed, many folks are feeling the sting and bite that is tax liability and have come to terms with paying large chunks of money to the IRS. 

The good news is that the sting and bite of taxes do not need to be as severe as most have become accustomed to. Solutions exist that help ensure your clients are not paying more to the IRS than is absolutely necessary while allowing would be “tax dollars” to work towards their financial goals. Before diving into those solutions we have to establish some basic assumptions:

  1. Most of your clients look to an accountant, CPA or enrolled agent for tips to reduce their tax bill.
  2. Most accountants may not bill for tax reduction services nor do they take a proactive approach to tax planning.
  3. Generally, most accountants are not aware of investment products used to help lower your tax bill. 

Now, let’s talk about some nuances that most folks are not aware of:

  1. There is a growing sector of the finance industry that is dedicated and focused on proactively reducing taxes by doing “deep dives” into the tax code.
  2. Proactively seeking tax reduction requires specialization and experience. When done right, it may lead to significant tax savings on real estate sales, income, capital gains and other taxable areas. 

Through the careful creation of a tax savings plan by a finance concierge, coordination with a qualified CPA as well as tax attorney, significant tax reduction is certainly possible. Think of it this way; the really big fish out there have been known to show hesitation when it comes to revealing their annual tax return to the world. Have you ever asked yourself why? Is it because they do not want the world to know where their earnings come from or is it because they do not want to show how they have been able to reduce their tax liabilities?

One key is understanding the IRS Tax Code and diving into opinion letters which requires a proficient and competent team made up of CPA’s, tax attorneys, and finance concierges. For most CPA’s, tackling proactive tax reduction requires a lot of time that may be outside of their capacity because their focus is typically on bookkeeping and tax return preparation.

Make sure you are doing everything you can to keep your clients’ hard-earned dollars in their pocket…there are plenty of options, you just need to do the appropriate due diligence and research on not just the solutions but also qualified team members who can help facilitate the process.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Travis Jennings

Travis Jennings is a seasoned advisor, published author, and leader within the fractional family office space. He owns Finance CAPE in Tampa, Florida, and specializes in serving High and Ultra high-net worth individuals/families.

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