WHEN TO ASK FOR HELP or Run the Risk of High Tax Bill

“Before taking action talk to your tax adviser.”

How many times have you seen this legal disclaimer and have your eyes gloss over? Unfortunately, there are too many times when taxpayers do not follow this advice and then must pay the price with an unnecessarily high tax bill.

Here are some of the most common situations that can save you money by seeking advice before you act.

·         Getting married

·         Selling a home

·         Donating stocks and investments

·         Getting divorced

·         Change in dependent status

·         Approaching retirement

·         Starting a business

·         Managing participation in tax-advantaged retirement accounts like 401(k), 403(b), and various IRAs

·         Death and birth of loved ones

·         Donating high value items

·         Selling stocks, bonds, mutual funds or business property (rentals)

·         An audit

·         Tax efficient transfer of your estate

·         Selling or buying high value assets (art, collectibles, real estate, and small business assets)

·         Determining Social Security benefit strategy

In advance of any of these events, or when in doubt, please ask for assistance. There are too many stories that include the words “if only he had talked to someone first.”

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Phil Chandler, CPA, MBA is a principal with Leblanc & Chandler, CPA and a speaker, author and consultant on topics regarding tax, bookkeeping, accounting and business management.  His education in accounting and engineering as well as background in accounting, construction and real estate provide him unique insights in what it takes to run successful businesses, especially in those specific industries.