Tax Secrets Your Financial Advisor

1068 WordsDec 2, 20155 Pages
Tax Secrets Your Financial Advisor Forgot to Tell You Tax Secrets Your Financial Advisor Forgot to Tell You Financial advisors are so busy researching investments, keeping track of the market, meeting with clients and preparing mountains of documents that they sometimes forget to advise you about tax secrets that can save you money. Some financial advisors concentrate on specific types pf investments, and they often receive commissions on the products that they sell. This practice isn 't inherently bad or good, and affluent taxpayers often receive advice from various experts. Simple things like secret tax deductions and creative tax strategies often fall through the cracks. That 's a shame because we passionately believe that you should…show more content…
The Biggest Tax Secret Advisors who work on commissions can 't help but favor their own investment products, but these might not be the best fit for your needs. If your tax advisor doesn 't get to know your business and financial goals, it 's likely that he or she will miss certain business opportunities and tax deductions. The tax code is complicated, so you can 't count on a generic financial advisor, harried accountant or basic tax preparer to know every deduction for which you qualify. Every tax deduction is better than found money. If you find $100 on the street, you owe taxes on that money. If your tax advisor saves you $100, then it 's yours to spend. Consider the following situations where an experienced tax advisor is crucial: Transferring wealth and the family business without paying exorbitant inheritance taxes Settling tax debt from previous years Use pretax money to fund retirement plans Converting nontaxable retirement plans to taxable or Roth plans to eliminate taxes on distributions after retiring Planning strategies for gifts, estates and trusts Achieving philanthropic goals while providing tax advantages Curating a personalized tax plan Choosing the right business entity for tax advantages Using insurance to build tax-free wealth Avoiding the alternative minimum tax Separating businesses into passive and active entities Getting a bigger depreciation deduction for your business vehicle The list of IRS "secrets" isn 't really secret, but
Open Document