[Henry]

Hello Everyone! Today being tax day, I just wrote the largest check ever in my life to Uncle-Sam.

We all know that reducing your tax liability is a strategic way to build wealth, and often the key is a quality accountant do dig deep into the tax code and find those incentives.

But How/Where do you find them? I’ve done my own taxes & finances since I was 19. But now that I have multiple investment properties in 2 states, I think I may be in a little over my head for next year.

Is this a simple “Google search” to find them, or is there a special way to go about it? I also know a bad one can absolutely screw your life up, so I’m very cautious trusting my finances to a stranger.

[Xiao]

CPA Here: Did you know you were going to write the largest check ever in your life to the IRS before April 15th? Did you have insight throughout 2023 that you were under withholding? Did you update your estimated tax payments to reflect the latest income projections?

Rarely is it about finding tax code incentives on April 15th, but proper tax advisory throughout the year that truly maximizes savings.

I made this statement on another post — people should not be surprised or unaware of how much they owe on tax day; it is 100% avoidable.

See the screenshot of my 2023 tax results.

Keep in mind I was a high-income W2 employee until I retired in October 2023.

Useful: High income CA residents: Who to help with tax strategy?

[Diana]

My CPA has investment properties himself. Find someone with specific experience in the area you need!

[Kara]

I asked friends, co-workers, neighbors, people who also might have slightly complex taxes because of their financial situation (like being a business owner or landlord). May is a good time to start a new relationship with a new account.

If you want your accountant to recommend tax strategies, I suggest meeting with them quarterly and before big transactions like buying a new property, to discuss your financial dealings and what you can do differently to minimize your tax obligations. Money, I pay my accountant for these conversations is always worthwhile.

[Lana]

I use a retired IRS agent who is also an EA.

My husband worked for the IRS until he retired, then became an EA, so he could continue to help people with their taxes. He loved helping people.

An Enrolled Agent, is one passed a tax test and can represent a client before the IRS Agency. Not all EA’s are former IRS agents. But if you can find one who is…you have someone with more tax knowledge than a CPA!

Suggested: Can I waive IRS penalty for missing Child Tax Credit for 17 year old?

[Kira]

get several names by recommendation only. Once this hot season subsides, talk to a few of them and you will see who to select. Go through a list of questions important to your situation (a mini job interview if you like).

[Kathy]

I had someone suggest their relative who “specializes” in complex returns. But she works for H&R and I just don’t trust them. Am I wrong here?

She’s like a supervisor there. So not low on the totem pole.

[Author]

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