By Matt Rosenberg, CPA/PFS for AICPA Insights
You know a lot about your tax clients — their jobs, their kids’ names, what kind of cars they drive — and you know even more about their finances. Most of the time, your clients are happy to share their complete financial lives with you. But, occasionally, when delving into the numbers, you’ll uncover financial moves you didn’t know about. Often, those moves involve their investments.
You may be hesitant to talk to your clients about their investments. But remember, proactive conversations about all the financial issues affecting them are part of a CPA’s job. In addition, talking about investments as a part of their entire financial picture is a great way to start planning conversations — especially as we head into year-end. Not to mention, this is an added chance to cement your relationship as their trusted adviser.
You want to help your clients avoid investment-related tax headaches, but you can only do that if you know what could cause them. Here are three examples of how investment choices could negatively affect your clients’ taxes and what to do to get them back on track.