Before taking action, talk to your tax adviser.
How many times have you seen this legal disclaimer?
Unfortunately, all too often 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)s, 403(b)s, 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 your 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 they had talked to someone first!”