Tax Advisor Near Me to Reduce Tax Burden:PillarWM
High net worth and ultra-high net worth individuals who are continuously on the lookout for tax-saving strategies often seek the best tax advice. Having a high income, these individuals need effective strategies from a professional who has sufficient experience in managing high-value investment portfolios. This is why many investors opt to work with a tax advisor near me who is skilled and knowledgeable in that field. If you have made an investment of $5 million or more worth of assets and are looking for robust tax-saving strategies, you should ask for a free copy of our new book, 7 Secrets to High Net Worth Investment Management, Estate, Tax, and Financial Planning.
STRATEGIES FOR FAMILIES WORTH $5 MILLION TO $500 MILLION
The insights you’ll discover from our published book will help you integrate a variety of wealth management tools with financial planning, providing guidance for your future security alongside complex financial strategies, so your human and financial capital will both flourish.
Clients frequently share with us how the knowledge gained from this book helped provide them tremendous clarity, shattering industry-pitched ideologies, while offering insight and direction in making such important financial decisions.
At Pillar Wealth Management, our team of financial advisors have worked with wealthy individuals and families for over sixty years. Being a fee-only, fiduciary, independent wealth management firm, we have the expertise and skills that you require to manage your tax and financial situation. Our wealth managers are highly adept at working with individuals and families who own liquid assets worth $5 million to $500 million. If you want to learn more about how we can assist you with our tax advice, make sure to visit our website and book an introductory meeting.
Table of Contents
Who Is a Tax Advisor?
A tax advisor is a financial professional with advanced knowledge and experience in tax law and tax accounting. Tax advisory services are generally limited in order to reduce payable taxes while ensuring compliance with the law in complex financial situations.
Tax advisors may include tax attorneys, certain financial advisors, enrolled agents, and Certified Public Accounts (CPAs).
Moreover, tax advisors help their clients in making well-informed tax-related decisions. They leverage their knowledge to aid clients in adhering to tax laws and maximizing adjustment benefits, deductions, credits, which helps them preserve a higher share of their wealth. Tax advisors hold interviews with clients to get more information regarding their financial circumstances and curate strategies to help them reduce their tax liability by availing tax credits and deductions. They ensure that their clients adhere to the law and effectively fulfill their tax obligation.
Tax advisors have expertise in dealing with numbers, reviewing complex legal documents, paying meticulous attention to detail, and collaborating with others. They also have the ability to think critically, communicate effectively, and solve challenging issues.
Tax advisors are hired by several different companies, including law firms, public accounting firms, and specialty tax consultancy firms. In addition, they are also employed by the government departments at the federal, state, and local levels to work in corporate tax offices for foreign and US companies, along with various non-profit organizations and foundations.
Tax planning can be a mind-boggling process, especially if you don’t have prior knowledge or experience. Thus, if you need more insights on the topic, you can simply schedule a free consultation with us, and we will be happy to guide you through it.
Benefits of Working with A Tax Advisor Near Me
A tax advisor can help you deal with practical issues such as managing rental income taxes, setting up trusts, and understanding the tax implications of child birth, partnerships, marriages, divorces, and other life situations. As mentioned earlier, they conduct in-depth interviews to collect relevant tax and financial information such as your taxable income, deductible expenses, and allowances.
Tax advisors can even prepare your tax forms or provide guidance and information to help you file your tax returns. They can answer any queries you may have related to taxes, help you in planning for possible tax situations, and go through your data to ensure compliance with regulatory requirements. These advisors can even go through the work of other financial advisors you work with to check for errors in tax preparation.
Some tax advisors focus on a particular area in taxation, whereas others adopt a holistic approach. They can help you figure out how much taxes you need to pay or if there are any tax benefits you can avail. These professionals keep themselves updated on any changes in tax codes. Hence, you can be sure that they will give you the most updated information.
Wealth managers have expertise in a number of financial areas, including tax planning and management. Our wealth managers at Pillar Wealth Management can use performance-enhancing strategies and tax-loss cultivation strategies to help you grow your wealth and reach financial serenity. You can read our guide, Improving Portfolio Performance, to get in-depth insights into the strategies we use to maximize your investment performance.
Why Should You Hire A Tax Advisor?
Some changes in life can impact your financial situation in terms of your tax burden, instigating you to search for a competent tax advisor. This can be anything from marriage, starting a family, divorce, the death of a loved one, unemployment, receiving an inheritance from your parents, buying a retirement house, and much more.
If you think taxes are eating away a significant amount of your wealth, you need to start using some tax-saving strategies. A tax advisor can help you attain your financial goals by using strategies that are personalized to your particular situation.
In fact, as a high net worth or ultra-high net investor, you are susceptible to higher tax liabilities and risks. Thus, it’s extremely essential for you to be prepared. Order a free copy of our hardcover book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies for Families Worth $25 Million To $500 Million, and learn how you can secure your financial status and maintain financial stability.
Is Financial Advisor Fees Tax-Deductible?
Hiring a competent financial or investment advisor can allow you to define your financial situation when it comes to things such as saving, budgeting, retirement planning, and investing. In return for professional guidance, you will have to pay a set fee for your financial advisor’s services. This might make you wonder, “Is my investment advisor fees tax-deductible?”
Well, before 2018, the fees paid to a financial advisor could be categorized in the miscellaneous category related to investments and hence, deducted. However, the Tax Cuts and Jobs Act resulted in some major alterations to what you, as an investor, can and cannot deduct.
Is My Financial Advisor Tax-Deductible?
Prior to the implementation of the Tax Cuts and Jobs Act, you could effectively lower your net income by getting a deduction for miscellaneous itemized deductions. This entitles you to get deductions for expenses related to investments, such as:
• Fees paid to financial or investment advisor
• Accounting costs
• Trustee fees
• Fees for tax and legal advice
To be eligible for this tax deduction, you had to indicate miscellaneous itemized deductions higher than 2 percent of your adjusted gross income for that particular tax year. For instance, if your adjusted gross income in 2017 was $300,000, you could have subtracted fees paid to the financial advisor along with expenses related to investments higher than $6,000 or 2 percent of your adjusted gross income. Assuming that you paid your financial advisor a fee of $9,000, then $3,000 of that fees would have been deductible.
However, The Tax Cuts and Jobs Act did away with such deductions starting from the tax year 2018. This modification to the tax code, coupled with others set up by the ordinance, will stay in effect till 2025.
Tax Saving Strategies to Help You Preserve Your Wealth
As discussed previously, the answer to the question, “Is my financial advisor fee tax-deductible?”is presently no. However, it doesn’t mean that it will never be deductible further down the line. Therefore, make sure you pay close attention to the modifications in the tax code,as it can help you avail opportunities to reduce the amount of taxes you have to pay on your investment. Working with an experienced tax advisor can also help to reduce your tax obligation.
Here are some tax-deduction strategies that a tax advisor can implement on your behalf to help you preserve and grow your wealth.
1. Maximize Contributions to Your Retirement Savings Account and Health Saving Account
IRA contributions are tax-deductible contributions made to any of your retirement savings accounts. These deductions don’t appear on your tax return as they are made directly from your paycheck,
In other words, you can reduce your taxable income by contributing to a savings account or a 401(k) account established by your employer.
Health Savings Accounts (HSAs) are tax-deferred savings accounts that can be utilized for healthcare expenditures at any time. If you contribute money to your HSA, it is considered to be a tax deduction, which consequently reduces your overall taxable income.
As a high net worth or ultra-high net worth investor, a reduced taxable income will allow you to enhance your portfolio performance. However, this is one strategy that financial advisors use to enhance your performance. In case you want to learn more about this topic, read our handy guide, 5 Critical Shifts for Maximizing Portfolio Growth Strategies.
2. Switch Your IRA Account to a Roth
In this approach, time is of the essence. Starting at the age of 72, the money contributed to an IRA has to be taxed and withdrawn. Several investors prefer to move their IRA accounts, and 401(k) accounts to Roth accounts as it allows their assets to increase tax-free.
You will need to pay taxes the year you switch. However, you will not have to taxes for any probable income. Note that there are several factors you will have to consider before making this change. If you need more information regarding this, feel free to speak to our competent financial advisors.
3. Tax Loss Cultivation
Tax-loss harvesting is a strategy where you sell some investments at a loss to offset profits made by selling others. The ultimate outcome is that you only have to pay taxes on your net gains.
You can use the income from selling the losing investments to buy other assets that might potentially grow over time and help you regain your money. The future gains can then be balanced out with future losses, hence resulting in a profitable cycle of tax savings.
Unfortunately, implementing a tax loss cultivation strategy isn’t that easy in real life. Trying to harvest tax losses by yourself is quite a complex and labor-intensive job. Historically, this task was carried out using an excel spreadsheet. But now, this process has become fairly simple as much of the strenuous work is done using software and handled by your tax advisor.
Our team at Pillar Wealth Management recently helped a client save $34,000 in taxes simply by managing his losses and profits. If you have invested liquid assets worth $5 million to $500 million and want to benefit from tax-loss cultivation, request for a free copy of our book, 7 Secrets to High Net Worth Investment Management, Estate, Tax, and Financial Planning.
How Much Does It Cost to Work with A Tax Advisor Near Me?
The cost of working with a tax advisor depends on the kind of tax advisor you chose, such as a CPA, a tax attorney, paid tax filing software, etc. Tax advisors are often self-employed. However, they can even work for accounting and auditing firms.
A tax advisor’s credibility and experience are the two most essential factors when it comes to determining the cost of working with a tax advisor.
At Pillar Wealth Management, our financial advisors work on a fee-only basis to ensure that they are no conflict of interest.
Last Few Words
When you want to properly manage your taxes and finances, working with a tax advisor might be one option for you. However, if you wish to work with a professional who can offer you a comprehensive range of services, you should definitely choose Pillar Wealth Management. We believe tax planning is a vital aspect of cost management and financial serenity. Our experience equips us with the expertise to assist individuals and families with over $5 million to $500 million. If you want to benefit from our services, visit our website to get in touch with us.
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