Strategic Tax Planning Services to Maximize Your Wealth
Today the tax code works on you.
Let’s make it work for you.
Navigate the US tax code, including international and real estate taxation with guidance from seasoned real estate certified public accountants.
Diana Tang, CPA, MBT
Tax Planning Advisory
Things have changed…
- The pandemic accelerated everything, from government borrowing to early retirements.
- Tax laws and tax regulations have been increasing at an alarming rate over the past few years.
- The USA will need to fill budget gaps. And municipalities are hunting for new taxes and fees, too.
- Not to mention, countries around the world are starved for funds and will seek out new ways to tax your international income.
- The IRS’s funding has jumped. States and cities will follow. They’re going to look for taxpayers who aren’t bulletproof.
“Municipal, state, federal, it doesn’t matter how many levels there are. There’s still only one level of taxpayer.”
Individuals seeking tax preparation services or tax advice from tax professionals typically approach an accounting firm way too late in the tax cycle. Typically, prospective clients look for ways to minimize their tax liability after the year-end has closed. We strongly recommend a year-round approach to working with a tax accountant to ensure that whether you’re considering taking advantage of credits for your business, or structuring your investments in stocks or local property, you are prepared to have the Internal Revenue Code work for you.
What we know about the 2020s
- Taxes will increase.
- Reporting complexity and compliance will ramp up.
- Municipalities will be starved of funds and will tack on taxes and fees to stay afloat.
- Labor laws will tip the scale further in favor of employees. Expect even more risk and the need to improve your documentation and paperwork.
- Real estate ownership and international tax compliance will require more risk management. Governments will respond with more price controls and complexity.
The value you realize in working with Advise RE
Tax Planning & Advisory
First, our tax advisors identify your specific opportunities to make savings on taxes and preserve your wealth with a thoroughly explained strategy, including (where appropriate):
- A tax efficiency analysis
- An income shifting opportunity
- Real estate tax strategies
- Change in tax jurisdictions (or an opportunity to leverage international taxation in another country)
- Change in entity type
Second, one of our tax professionals will also help you identify ways to maximize exemptions and deductions based on prior tax returns which will minimize tax liabilities in future years.
Third, we will continue to work with you throughout the year to ensure you receive the right amount of time needed to address your evolving financial needs and so you can experience the benefit of our expertise in taxation when you need it most, not when it’s too late.
From our offices in Los Angeles, we offer tax and financial planning services to clients throughout the United States and internationally.
Clarity
The value of the shortcut is in some cases immeasurable, but there is no question as to its existence. The value you receive from our tax planning services is clarity and understanding. Whether you are new to real estate investing, need estate planning or understanding trusts, or would like a better understanding of the rental properties or international taxation, we’re here to provide you that shortcut with our extensive experience.
Risk Reduction
Our tax planning service helps clients stay on top of the regulatory environment, preserving their tax and investment earnings.
By implementing a risk reduction strategy, you can sleep well at night knowing that your money is protected.
Our team is ready to answer any questions. Contact us to arrange a consultation with an Advise RE tax planning advisor.
Accidental non-compliance could undo your newfound gains. Some examples include:
- Not filing your Report of Foreign Bank and Financial Accounts “FBAR” ($10,000 penalty)
- Not completing a Information Return of a 25% Foreign-Owned U.S. Corporation “Form 5472” ($25,000 penalty)
- Misclassifying employees as contractors ($10,000 minimum and realistically much, much more)
- Not audit proofing your records to withstand an IRS or state tax audit ($10,000-$100,000)
- No financial or oversight controls in place over payment processing ($20,000-$500,000)
How To Choose A Tax Planning Service
Selecting a tax planning service is an essential decision that requires careful consideration. The right service can help you navigate the complex world of taxation, ensure your tax compliance, minimize your tax liability, and make the most of tax-saving opportunities. Here’s a step-by-step guide to help you make an informed choice.
Define Your Needs
Before you begin your search, identify your specific tax planning needs. Are you a salaried individual, a business owner, or an investor? Do you have foreign income, own rental properties, or have a complex estate? The more complex your financial situation, the more specialized advice you’ll need. Once you have a clear understanding of your needs, you can look for services that cater specifically to your situation.
Consider the Service Types
There are different types of tax professionals, and understanding their roles is crucial in making the right choice.
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- Certified Public Accountants (CPAs): CPAs are accounting professionals who have passed a rigorous exam and met specific state licensing requirements. They can handle a broad range of financial services, including tax planning and preparation.
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- Enrolled Agents (EAs): EAs are tax professionals licensed by the federal government. They specialize in taxation and can represent you before the IRS.
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- Tax Attorneys: If your situation is particularly complex or if you’re dealing with legal issues such as tax fraud allegations or estate planning, a tax attorney can provide expert legal advice.
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- Tax Preparation Services: These services can assist with the preparation and filing of tax returns but may not provide comprehensive tax planning strategies.
Your choice should depend on your specific needs and the complexity of your financial situation.
Verify Credentials
Always verify the credentials of the tax professional or service you’re considering. For CPAs, check with your state’s Board of Accountancy. For EAs, you can use the IRS’s Directory of Federal Tax Return Preparers. If considering a tax attorney, check with your state’s bar association.
Check Experience and Specialization
Experience is a key factor when choosing a tax planning service. Ensure the service or professional you select has substantial experience dealing with tax situations similar to yours. If you own a small business, choose someone experienced with business taxes. If you’re an expat, select a service familiar with international taxation.
Ask About Their Approach to Tax Planning
Each service will have its unique approach to tax planning. Some may be aggressive, seeking to exploit every loophole in the tax code, while others may take a more conservative approach. Discuss their philosophy and ensure it aligns with your comfort level.
Review the Fee Structure
Understand the fee structure before you commit. Some professionals charge by the hour, some have a flat fee for services, while others charge a percentage of the amount you save on taxes. Choose a fee structure you’re comfortable with, and ensure all charges are transparent.
Seek Recommendations and Read Reviews
Recommendations from trusted friends, family, or business associates can be invaluable in your search. Online reviews can also provide insights into others’ experiences with the service. However, always take online reviews with a grain of salt, and don’t let them be your sole deciding factor.
Schedule a Consultation
Once you’ve narrowed down your options, schedule consultations. This is your opportunity to ask questions about their services, approach to tax planning, communication style, and how they stay updated with changing tax laws. This interaction can also give you a sense of whether you’d feel comfortable working with them.
Assess Communication and Availability
Good communication is crucial in any professional relationship. Your tax planner should be able to explain complex tax concepts in understandable language. They should also be accessible and responsive when you have questions or concerns.
Tax planning is a vital aspect of financial management. Making the right choice can mean the difference between missing out on potential tax savings and optimizing your tax situation. Take the time to research and choose a tax planning service that best suits your needs, and remember, the cost of these services can often be justified by the savings they can offer. Trust your instincts, and don’t rush the decision. The ideal tax planning service is one that offers the right combination of experience, expertise, and communication that aligns with your needs.