Tax Preparation

It might seem that all professionals that prepare tax returns prepare returns the same.

This is a gross mistake that people make. While a person might develop a personal relationship and like the preparer, it would be like going to a doctor for a surgery that you chose the doctor because you like him/her rather than the skill set in performing the surgery

Steps in Typical Tax Prep

  1. The preparer starts in November / December in the current tax year by sending out a tax organizer

  2. Between February and April, the tax preparer gathers data and prepares your tax returns

  3. Approximately 10% of tax preparers have the one on one discussion on what tax reduction ideas you can use for the past year.

    • You will lost up to 98% of all tax reduction strategies by talking about them after the tax year has concluded

    • Tax Planning does not start in November or December as many deductions are time based so the further into the year, the less you save

  4. 99% of tax preparers do not spend the additional expense on high end tax planning software. This could range from $3,000 a year to up to $75.00 per client. They rely on memory or the last CE class they attended

  5. The tax preparers are not connected to real estate and investment accounts like a financial planner is so they miss items such as QCDs, or 5500 mistakes.

  6. When tax preparers are disconnected from the financial planner then many opportunities are missed such as

    1. Tax Swapping

    2. Tax Free ROTH Conversions

    3. Selective RMD distributions

    4. Tax Harvesting

    5. Investment Location Opimization to reduce tax on interest, dividends and capital gains

    6. Etc, etc, etc

  7. Strip Mall Tax Shops. Most of the big tax preparation shops hire people in season and they get six weeks training. Once they are put in front of a computer they are seen as "experts". This is why when people think they can save money but going to these sources, in many cases, they lose much more than they save.

The One Wealth Map Way

  • Tax Planning starts in January for the current year. Without a plan to start off the year there is no way to recover savings once time has passed.

  • A plan is set up in our tax planning AI software

  • Throughout the year any new IRS tax codes are inserted into the AI and alert the OWM team to assure you are taking advantage of thee opportunities

  • Th AI sets alerts based on downloads from online brokerage and accounting systems. When you get off track or opportunities change the system will alert the OWM team.

  • In January the tax preparation is easy. All you have to provide are the items we would not already have

    • What we would already have

      • All Accounting records from your business

      • All 1099s from investment accounts

      • Knowledge of all tax planning actions taken in the prior year such as GAMMA, tax swaps, ROTH conversions etc.

    • The only itmes you need to get to us

      • Pay stubs

      • Real Estate Taxes paid

      • Real Estate transaction and final closing statements

      • Verification of any charitable deductions

  • While we are preparing your tax returns in the current year, we have already built a tax plan for the upcoming year. This way you are not losing a full quarter of a year in opportunities to reduce tax for the current year.

  • We invest a conisderable sum each year for our tax planning AI software system. This allows us to not depend on someone's "memory", but allows the machine to do the memory work.

  • In a point by point comparison to high cost CPAs we charge on avergage 20% less. We can do this based on our technology.

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