News

Tax pitfalls are something everyone tries to avoid, especially high net worth clients. Investing can bring on excess tax burdens if your clients are not aware of things they should be on the lookout for to avoid potential problems. 

Here, I'll discuss the top four tax pitfalls that are an issue for high net worth clients:

1. Lack of Collaboration: It is key to have clients introduce you, their tax advisor, to their financial advisors and/or wealth managers. Many times, the advice provided by these professionals will have tax consequences, so it is important to have everyone on the same page. The last thing you want is to find out that your client made a bad move the prior year when sitting down to do their taxes. Maybe they have received a 1099, K-1 or other tax document you were not aware of before beginning the return. Ideally, you want your clients to feel comfortable bringing their team together when they are considering financial decisions that may impact them tax-wise. This will allow the client to get the best advice and ensure there are no surprises, as well as provide you with an introduction to the financial advisor. This introduction may lead to additional business and future collaboration with other clients.