Tax advice is guidance and support from a professional about your tax obligations and how to minimize your taxes. This includes helping you decipher complex tax laws and regulations that apply to you, your business, and your investments. A qualified tax advisor can also advise you about maximizing the amount of tax deductions you are eligible for, including determining whether you should itemize or take the standard deduction.
Tax law concerns the legal “rules” for how much state, local and federal governments can charge you for tax each year. It’s an enormously complex field that covers procedures, policies and penalties for everything related to taxes. Taxes can be charged on income, investment gains, property and consumption. The tax code—the 70,000+ pages of regulations that govern how taxes are assessed and collected—is constantly changing to reflect political, economic and social agendas, which makes having tax advice a crucial part of financial planning.
Getting tax advice is important to help you make the most of your income. Getting the right guidance and support can help you legally lower your tax liability, optimize the use of your tax exemptions and rebates, and stay current with changes to the law.
A tax advisor can provide guidance throughout the year, not just at tax season. A good tax advisor will keep up with your situation so they can alert you to opportunities that may arise, like modeling different exercise scenarios for stock options to avoid paying the alternative minimum tax or advising you about the best way to sell a rental property. Depending on your business size, you might choose to have a regular meeting with a tax advisor or contact them on an as-needed basis. Steuerberatung