Do not ask a CPA about tax-efficient strategies

#Real Estate#Taxes#Finance

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.