Many people opt to meet with their tax practitioner just once a year so that they can get their income taxes prepared and filed. If this is the schedule you keep, you could be missing out on some valuable services and advice. There are several events that can happen during the course of the year that should trigger calling your tax practitioner and either discussing the concern over the telephone or arranging a consultation.

  • Sale of an investment- Your tax practitioner can go over the tax consequences of a sale, be it stocks, bonds, real estate, or another type of investment. Timing can be critical so that you don’t face higher capital gain taxes, so if time allows, discuss the sale prior to putting in the sell order. A complex real estate deal is something you should always talk to your tax practitioner about in case a 1031 like-kind exchange could be facilitated.
  • Change in income or expenses- Getting a promotion or pay reduction, having a high medical bill, and other drastic changes to your income or deductions should be discussed with your tax practitioner. This is especially true if you are required to pay quarterly tax estimates that could be affected by the change in your circumstances. Changes in your business should also be discussed.
  • Change in family circumstances- Marriage, divorce, birth, adoption, and death are all life transitions that can affect your tax liability and tax plan, so call your tax practitioner if any of these occur.

These are just a few examples of major changes that your tax practitioner should be made aware of when they occur instead of waiting until after the end of the year when it is too late to make any changes. If you are in need of a tax practitioner to assist you this year and in the future, reach out to us at TaxCom, LLC. We offer a wide variety of accounting and financial planning services, and we are happy to help you reach your financial goals.