I’ve re-typed this piece of advice about a dozen or so times in the past few weeks. Might as well then write it up here, to short-circuit the future re-typing.
Do not ask a CPA for tax law advice. Do not listen to a CPA about tax efficient strategies.
- If they are not licensed to practice law, they may not advise you on any legal matters.
- It is not a CPA’s job to formulate tax-efficient strategies.
You want to talk to a tax lawyer instead.
If you need a memory aid:
- A CPA’s job is to know when you give them an amount X, which cell in the tax form to put it in.
- A tax lawyer’s job is to advise you how best to minimize the amount X, based on your own circumstances.
To recap:
- Do not ask a CPA how to minimize X. They don’t know that, and also can’t help you with that. Ask a tax lawyer instead.
- Do not ask a lawyer where to put X. They might know, but they are too expensive to ask that particular question. Ask a CPA instead.