Hiring a professional for capital gains tax planning is a wise investment, especially if you fall into specific categories where expert advice can significantly affect your financial outcomes. If you have appreciated assets worth over $1 million, working with a tax advisor can help defer and reduce your capital gains liability, ensuring you maximize your returns. This is particularly important for business owners or those selling investment properties, as tax laws in these areas are complex and frequently change.
Selling a short-term investment, where gains are taxed at higher rates, is another scenario that calls for professional help. A tax advisor can suggest strategies like offsetting losses, leveraging deductions, or using tools such as a 1031 exchange for real estate to defer taxes. If you’re transitioning from active to passive income, they can also help you retain more of your profits instead of losing a large chunk to taxes.
For those struggling to make 1031 exchanges work, a tax advisor offers alternative strategies that provide more flexibility. Creative tax planning can reduce high taxes on investments, and estate planning, especially for high-net-worth individuals, benefits from professional guidance to ensure your legacy is preserved with minimal tax burden.
source: https://capitalgainstaxsolutions.com/7-signs-you-need-to-hire-a-capital-gains-tax-advisor/
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