Kristin Kippen transforms her tax preparation business into a Tax Advisory Practice with TaxPlanIQ
One of Kristin’s colleagues had a client needing help planning for a huge financial windfall. Since that colleague only performed tax preparation services, they referred the client to Kristin for tax planning.
What Kristin discovered was that the client was planning on selling a large area of land they had been using for sheep grazing. The projected sale amount was more than $5 million. What they needed was a tax strategy that would reduce their tax liability after the sale.
This was a perfect scenario for the application of TaxPlanIQ, a SaaS for accountants to propose and track the ROI of tax strategies for their clients.
TaxPlanIQ is a platform that helps accountants with tax calculations, planning, and general organization. By aggregating all of the client’s data into one place, the platform decreases the amount of time spent on manually inputting data into spreadsheets. TaxPlanIQ also creates workflow efficiencies that help provide higher-value tax planning services to clients.
Now, as a Certified Concierge Accountant and Certified Tax Planner, Kristin focuses on introducing her clients to court-tested, IRS-approved strategies for minimizing taxes and maximizing savings.
“I combine those strategies in a custom tax plan based on each client’s unique situation, and then I work with them to carry out that plan,” explained Kristin.
Having a plan was just what Kristin’s new client needed. The client didn’t have any other investments and was not experienced with tax-effective money management. But they did have goals.
“The client wanted to continue life as a sheep farmer, pay off debt, build their dream home, and have a comfortable amount of cash in the bank,” said Kristin. “I wanted to help them reach those goals.”
Kristin conducted a discovery call with the new client to understand their situation, needs, and timing. She also reviewed previous tax filings to get a clearer picture of the client’s existing tax situation.
“Next, it was important that I took a look at what the client’s tax bracket and effective rate would be upon the sale of the land,” said Kristin. “Then I entered all of the necessary information into TaxPlanIQ to devise the best strategy.”
At some point, the client was told by someone that all they needed to do was to perform a 1031 exchange. Such an exchange allows real estate investors to swap one investment property for another and defer capital gains taxes. While this is often a great strategy, it was not the right strategy for this scenario. The 1031 exchange would have tied up all their cash proceeds.
Kristin’s experience told her that there might be a better alternative.
“After working through options in TaxPlanIQ, I designed a plan that offered flexible alternatives to the 1031 exchange in addition to leveraging their current situation into ongoing tax savings,” said Kristin.
After adding TaxPlanIQ to her Certified Concierge Accountant, Kristin rebranded her business as Strategic Tax Planning. Her firm is now devoted to tax planning and tax advisory services, not just tax preparation.
“My aim is to create a proactive plan, optimize income, and minimize taxes,” said Kristin. “Since I made the shift to tax planning, TaxPlanIQ has allowed me to hit the ground running. The professionalism of the SaaS platform and the resources and support that the company provides helps create direction so it’s easy to get up and running. My business would not be where it is today without TaxPlanIQ.”
For more information visit TaxPlanIQ