Tax Loopholes

Your tax advisor should help you find them (legally).

Ask these five questions when vetting your tax advisor - if their answers leave you feeling other than aligned, move on.

“Planner” below = tax advisor that does tax planning.

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1) Knowing what you know about my situation, where am I currently leaving tax on the table?

Judges their ability to see tax inefficiency in real time - indicating they naturally plan.

It’s okay for them to ask to come back later with an answer here, just as long as they do.

2) If I were location independent, what would be my ideal tax jurisdiction?

Judges their ability to make creative suggestions and their understanding of tax in other jurisdictions, which is important for a complete tax advisor.

3) What potential legislative changes could have an impact on my tax situation? How do we mitigate risk or capitalize on opportunities?

Can they not only plan with current rules, but also juggle the future (where you actually pay tax).

4) What are some planning strategies of high-net worth individuals or businesses that may not currently fit my situation?

If they rattle these off with ease and excitement, it tells you they are a student of the game.

5) What should my current legal entity structure be and why?

If they start drawing boxes and explaining with ease, they do this all the time.

If they are choppy and you don’t understand, it’s probably them and their lack of experience.

6) Bonus Question - Who do you collaborate with on planning ideas.

No one plans (well) in a vacuum.

Any answer here other than “no one” is probably acceptable, but you want to see evidence of them being connected either though other planners, firms, treatises/journals, etc.

If they get four out of six, they are probably good.

All six, could be world-class.

They have to get #1 right or move on.