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STOP Wasting your Money on Tax Preparers! Do This Instead

The Hidden Cost of Hiring a Tax Preparer (And How to Avoid It)


Do you find yourself dreading tax season every year? Are you tired of shelling out your hard-earned money to tax preparers who seem to charge a small fortune for a simple task of data-entry? Does your tax preparer only show up when they request your information to prepare your tax return and then ghost you for months? Well, it's time to put an end to this wasteful spending of time, money, and sanity and take matters into your own hands. I am talking about financial empowerment, and it can mean the difference of hundreds of thousands of money over your lifetime.


Not only are there a ton of numerous free or low-costs sites out there that provide tax preparation services, but it's 2023 and technology has made major strides with artificial intelligence (A.I.) that can prepare and file your returns for you! So why are we still forking over hundreds sometimes thousands of dollars to these generalist tax preparers who simply fill out forms for us? Sure, tax preparers can save us time and give us some peace of mind during tax season. But at what cost? It's time to ask ourselves if this is really worth the price tag and if you are getting any return on your "investment". In my eyes, that's money that could be better spent on our own financial goals or investments.


By relying solely on tax preparers, we miss out on a valuable opportunity to educate ourselves on the tax code and gain a deeper understanding of our own finances. Instead of simply handing over our documents and waiting for the finished product, we can take control of our financial lives and make informed and proactive decisions.


When it comes to managing our taxes, many people seek the help of a tax professional to ensure that their taxes are done correctly and in a timely manner. However, not all tax professionals are created equal, and it's important to understand the differences between a tax preparer, tax planner, and tax strategist.


A tax preparer is a professional who specializes in preparing tax returns for individuals and businesses. They are often generalists, focusing on filling out tax forms accurately and efficiently. One can become a tax preparer by simply filling out a questionnaire, having a clean background, and paying some annual fees. While they can be helpful in getting taxes done in a timely manner, they don't offer much in the way of financial guidance or strategic planning.


A tax planner, on the other hand, takes a more proactive approach to managing taxes. They work with clients to identify potential general tax-saving strategies and plan for long-term financial goals. This may involve adjusting income, taking advantage of tax deductions, setting up retirement accounts, or other strategies tailored to the specific needs of the client. Tax planners are very useful to help you estimate your tax liability for the year and advise on how much you should plan to pay in taxes for the year.


Finally, there are tax strategists who take a comprehensive approach to managing taxes. They view taxes as an integral part of a broader financial strategy. They look at a client's entire financial situation, including investments, retirement savings, and estate planning, to develop a holistic tax plan. This approach often involves working with other financial professionals to ensure that all aspects of the client's financial picture are aligned with their tax strategy. Think of your tax strategist as your business partner, the gift that keeps on giving and brings you to the financial success you've been visualizing.


While each of these professionals can provide valuable assistance when it comes to managing your taxes, it's important to choose the right one for your needs. If you're a small business owner or work in a specialized industry, it's especially important to find a professional who has experience in your area. For example, if you're a real estate agent, working with a tax strategist who specializes in real estate taxes can provide valuable insights and strategies specific to your industry.



That's exactly what John realized, whose life was forever changed by partnering with the right tax professional.


John had been investing in real estate for several years, steadily building his portfolio of properties. However, year after year, he found himself frustrated with his tax situation. His tax preparer, who was a generalist CPA, seemed to miss out on valuable deductions and strategies specific to real estate investors.


John was paying more in taxes than he believed was necessary, and it was taking a toll on his financial goals. He felt trapped, unable to scale his real estate portfolio and build his wealth the way he knew he should be.


Fed up with this ongoing frustration, John decided it was time to seek out a tax professional who specialized in tax planning for real estate investors. He kept hearing about real estate being the path to wealth and having a ton of tax benefits, but he just wasn't seeing it.


After some thorough research and recommendations from fellow investors, he found a tax & accounting firm with a real estate niche, where I managed a team as a tax strategist who had a deep understanding of the unique tax benefits and strategies available to real estate investors.


During our first meeting, we dove into John's financial situation, analyzing his investment properties, income and expenses, goals and aspirations, pain-points and fears. We identified key areas where John had been missing out on valuable deductions, as well as strategies he can implement that aligned with his short term and long term goals.


Working closely together, we made corrections to his previous tax returns and implemented a comprehensive tax plan for John for future tax years. We made strategic adjustments to his expenses, structured his rental properties in a tax-efficient manner that also protected his assets, and guided him in taking advantage of available tax credits and deductions in a legal and ethical way. He was provided with the tools, referrals and guidance that allowed him to soar.


The results were nothing short of astounding. In the following tax year, John received a whopping $200,000 tax write-off. This significant reduction in his tax liability not only put more money back in his pocket but also provided him with the financial freedom he had been longing for.


With his newfound tax savings, John was able to scale his real estate portfolio, acquiring more properties and expanding his investment reach. He could finally focus on building his wealth and achieving his long-term financial goals.


This true story is a testament to the transformative power of working with a tax professional who specializes in your specific industry. Imagine the possibilities if John had continued to work with a generalist tax preparer who didn't understand the intricacies of real estate investing. He would have missed out on hundreds of thousands of dollars in tax savings, stifling his financial growth and potential.


So, whether you're a real estate investor or work in any other specialized industry, consider the enormous benefits of finding a tax strategist who understands your unique tax situation. Don't settle for a generalist CPA who may overlook valuable deductions and strategies specific to your field. Take the leap and invest in a tax professional who can unleash your financial potential and help you build true wealth. Someone who you consider part of a team, not just a transactional means to an end.





Ready to uncover your own tax-saving opportunities and unlock financial prosperity? Contact me today to discuss how my specialized tax planning services can benefit you and your financial goals. Together, we can build a successful and thriving future.



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