Why seeing your tax return is important to us

Mike Tunke |

Why should a financial advisor ask for a tax return?


Clients usually self-prepare or hire a CPA or and enrolled agent to file their tax returns.  We don’t argue with that at all!  However, when you are filing your tax returns, you are reporting what has already happened.  We want to see your tax returns so that we can plan our strategies to positively affect what you report and how.


By looking at the past, we can learn a lot and use past returns to help us plan your investment strategies accordingly.  A few items that a financial advisor may look for:

  • Do you have a long-term capital loss that is being carried forward?
  • What is your current capital gains tax bracket, what will it be in coming years?
  • Have you been maximizing your deductions?
  • Do you have a side business reported on a Schedule C?
  • Do you donate to charity?


When we know some of this information, we can help make more informed decisions!  Some of the conversations and strategies may look a lot like the following examples:

  • “Did you know that you have been carrying forward a $40,000 long term capital loss?  You could sell that stock you mentioned that has a $28,000 capital gain and use the carry forward loss to offset that gain.”
  • “Currently you are in the 15% capital gains tax bracket, but it appears that in the next few years you will reach the 20% bracket.  Maybe we should sell some investments at gains to pay a lower rate today.”
  • “Your side business produced a profit, let’s explore a retirement plan for that business to lower the self-employment tax you pay.”


Those are some hypothetical examples of conversations that could be had, but the take way is that providing a tax return could help us to keep your hard earned income in your pockets! 

Reach out to us to set up an initial meeting and don't forget your tax return!