Quote:
Originally Posted by Laurie2
A good accountant can be important to those who direct their own investment choices.
Investment decisions can cause tax consequences or create tax benefits.
Self-directed investors must be sure they understand the tax implications of everything they do, like the following stuff and more I have not thought of. . .
-Rollovers
-Tapping IRAs
-Conversion to Roth
-Using a charitable account to buffer tax hits in a higher income year, for instance, when taking distributions from an IRA. Such accounts, available through some of the big mutual fund companies, are not just for the wealthy. Funding a charitable account can allow you to manage your giving in a way that might help you at income tax time.
-Being ready for the RMD. There are those who might need to start this process a few years ahead of that birthday in order to keep more of the distribution.
-Income levels that when crossed can affect Medicare costs. The levels can seem pretty high to most of us, but it is something that some investors need to be aware of, especially as the RMD birthday starts to close in.
-Tax rates on dividends and capital gains. Understanding how to take gains (or maybe losses) on individual stocks can help at tax time.
-etc.
An accountant can help individual investors to manage their self-directed portfolios in a tax-effective way.
You can learn a lot from a good accountant.
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All those questions can be answered with a little research.