A tax advisor is an accounting expert with advanced training and knowledge of tax accounting and law. While tax consultants can have varying professional backgrounds, many are trained as tax lawyers, certified public accountants (CPAs), or enrolled agents, and they all help you make a tax strategy while remaining compliant with the law.
Vince Iannello on how does a tax advisor help?
Vince says that Canada tax legislation is extremely complex. Part of a tax advisor’s job is to know the such legislation and to stay on top of any changes the Canada Revenue Agency declares so that they can help you lawfully decrease your tax bill if possible. Some tax advisors are generalists, while others focus in complicated tax areas like small business, startup equity compensation, and real estate, so when deciding which tax advisor is correct for you, ask about their experience and proficiency.
- Tax modeling
To make smart tax decisions, you need to know how diverse actions influence your taxes. A tax advisor can run diverse calculations based on decisions you are thinking about to show you the tax impact.
- Proactive tax planning
Vince Iannello says that the best tax advisors can advise you on prospects that you can take all through the year to decrease future taxes. For example, if you were granted stock options by your company, they might model different exercise scenarios to help you avoid paying the AMT or alternative minimum tax.
- Tax preparation and filing
A tax advisor can also help you optimize, prepare, and file your tax return. They can look for tax deductions and credits, such as a mortgage interest deduction or residential energy credits, that can help decrease your taxable income or increase your tax refund.
When to hire a tax advisor?
Hiring a tax advisor can save you time and stress and help you save real money, especially if you have more complex taxes. You might want a tax advisor if you:
- own a business,
- are self-employed
- hold assets like stock or real estate
- have been granted equity as part of your compensation at a job
It is also good to talk to a tax advisor if you made or are planning to make any big life changes, like getting married or divorced, purchasing a home, retiring or moving. A tax advisor can help you know how events like these might change the deductions and credits you can claim, the forms you need to file, and filing status.
As you can see a tax consultant can resolve all the financial queries that would otherwise be holding you back from making the best financial/investment decisions. Whether you are an individual or run a business you can employ a tax consultant to help you in tax planning and compliance. A rightly chosen tax advisor can help clients reduce or eliminate tax liabilities.
While a regular accountant will help prepare for tax season, a tax advisor will work with your business all through the year to ensure you obey with all regulations. They will keep you updated on tax rules changes and advise you on how to take benefit of them.
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Company Name: Iannello and Associates
Contact Person: Vince Iannello
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Country: Canada
Website: https://iannellocpa.com/