Tax adviser worth it?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
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Topic Author
Tech
Posts: 121
Joined: Wed Jan 24, 2018 12:31 pm

Tax adviser worth it?

Post by Tech »

I think* I need a Tax adviser.

How to choose a good one ?
What do you think about Tax adviser?
westrichj312
Posts: 132
Joined: Wed Jul 05, 2017 4:25 pm

Re: Tax adviser worth it?

Post by westrichj312 »

Most of us use one to get our taxes done. google search your area for a cpa
PFInterest
Posts: 2684
Joined: Sun Jan 08, 2017 11:25 am

Re: Tax adviser worth it?

Post by PFInterest »

westrichj312 wrote: Tue Mar 06, 2018 3:57 pm Most of us use one to get our taxes done. google search your area for a cpa
says who?
jebmke
Posts: 25475
Joined: Thu Apr 05, 2007 2:44 pm
Location: Delmarva Peninsula

Re: Tax adviser worth it?

Post by jebmke »

It would help if you elaborate on what your needs are specifically.

Tax preparation and tax advisory services can be quite different.

For personal tax advice (investing, personal financial and estate planning etc) I would seek out a law firm that has lawyers who have formal training in taxation. This is usually an LLM.

For corporate tax advice, it probably depends on how complex your issues are and whether you have a lot of international issues. The latter might suggest a major accounting firm like PWC. These firms have both legal and accounting expertise on the tax advisory side and compliance side.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
Topic Author
Tech
Posts: 121
Joined: Wed Jan 24, 2018 12:31 pm

Re: Tax adviser worth it?

Post by Tech »

I am so confused about RSU and ESPP "adjusted cost basis". The IRS makes life more difficult than it should be.
Brokers used to be able to report the adjusted cost basis, until IRS told them no more. Part of it already tax on W-2, if we don't report it correctly we might pay double tax.
I spent exactly 2 days scratching my head how to calculate this number.

So I thought give this to the expert who can help me figure this out, and maybe plan out how I should sell my LTCG to minimize tax.
itstoomuch
Posts: 5343
Joined: Mon Dec 15, 2014 11:17 am
Location: midValley OR

Re: Tax adviser worth it?

Post by itstoomuch »

Consult the brokerage firm that holds the company's contract. Consult your brokerage firm.
Our son's company has put on several seminars to holders of ISU, RSU, stock bonuses, etc.
See what your peers have done.
Rev012718; 4 Incm stream buckets: SS+pension; dfr'd GLWB VA & FI anntys, by time & $$ laddered; Discretionary; Rentals. LTCi. Own, not asset. Tax TBT%. Early SS. FundRatio (FR) >1.1 67/70yo
livesoft
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Joined: Thu Mar 01, 2007 7:00 pm

Re: Tax adviser worth it?

Post by livesoft »

There are threads where people discuss looking for tax advisor especially when it comes to RSU, etc. Guess what? They really didn't find anybody to help them. One person had to help teach the CPA what was going on. Maybe you can find those threads.

The outlook is bleak.
Wiki This signature message sponsored by sscritic: Learn to fish.
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FiveK
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Joined: Sun Mar 16, 2014 2:43 pm

Re: Tax adviser worth it?

Post by FiveK »

Tech wrote: Tue Mar 06, 2018 4:06 pm I am so confused about RSU and ESPP "adjusted cost basis".
Your 1099-B form for an ESPP sale will probably be wrong has some discussion on this topic.
BogleLearner
Posts: 78
Joined: Thu Sep 17, 2015 4:21 pm

Re: Tax adviser worth it?

Post by BogleLearner »

Many of us do not have a brokerage firm to consult. If you need tax advice or
need cost basis information, this is hard to find now. From past experience,
brokerage firms to not want to calculate the cost basis of an investment,
but tell you to consult your tax advisor. Some tax advisors only provide
tax preparation services as well and try to tell you to go back to the
broker - a cycle with no solution. Our family had a broker who tried
to sell "management" of investments - additional fees on top of the
loaded mutual funds sold to us - which is why we escaped this
system and turned to Vanguard. We are looking for tax advice
as well.
fourwheelcycle
Posts: 1968
Joined: Sun May 25, 2014 5:55 pm

Re: Tax adviser worth it?

Post by fourwheelcycle »

Tech,

I have looked at your other posts. It appears you are young, have a good job, and are early in your family life. Both of our sons are about your age (my guess) and they are both faced with stocks or stock options as part of their annual pay or bonuses. I never had to deal with that, but it seems common today. You are getting a good range of advice above. My inclination would be to do your own research and figure out if you can learn how to handle your related tax issues on your own, hopefully by asking friends or finance people at work. If you can't figure it out on your own with local advice or web research, then you may have to go to a local professional. If you do, and if they know what to do, watch closely and learn so you can do it yourself in the future.

Overall, I suggest you keep your investments as simple as possible. Avoid buying individual stocks and bonds, which can take up your time and incur extra costs and complexity when you buy them and when you sell them. Get an account at Vanguard/Fidelity/Schwab (I prefer Vanguard) and keep your life simple with total US stock, total US bond, and total international stock index funds with very low expense ratios. Have faith that over the long term you will do as well or better with low ER index funds than buying your own stocks and bonds, or buying actively managed funds with higher ERs.

Balance your portfolio by keeping only stocks in your taxable account and all of your bonds plus some of your stocks in your retirement accounts. Since there are no taxes, basis calculations, or reporting requirements when you buy and sell in your retirement accounts that is the best place to do your balancing and rebalancing. This advice may generate some comments from others, but that is what I do.

Focus your life on your family and your job. Keep your income taxes as simple as possible so you can do them yourself each year with minimal hassle and complexity. Use the download versions of TurboTax Deluxe or Premier (Premier lets you call in and speak to a real accountant if necessary). Use camelx3 to track Amazon's sale prices.

Your life will hand you enough complexity on its own, between stock options from your employer(s) and maintenance issues around your house. For each complexity you will have to decide whether to learn how to handle it on your own or spend money for a professional advisor or contractor. Different people have different inclinations - most Bogleheads are strongly inclined to do things themselves, and only turn to professional help after trying to learn on their own, perhaps with advice from this forum. Estate planning is an exception; when you do your first wills, etc., educate yourself on the alternatives, but pay for a qualified estate attorney to create the proper documents for your state and your situation.
Topic Author
Tech
Posts: 121
Joined: Wed Jan 24, 2018 12:31 pm

Re: Tax adviser worth it?

Post by Tech »

Thanks everyone for taking the time to answer and advice. I really appreciate that. I wish I knew this board when I first started working.
Anyway, it will be never too late to start investing.
wrongfunds
Posts: 3187
Joined: Tue Dec 21, 2010 2:55 pm

Re: Tax adviser worth it?

Post by wrongfunds »

Turbo Tax handles ESPP better than H&R
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