Own or manage a portfolio holding alternative investments? Better start thinking about tax filing.
According to the IRS, the average taxpayer spends 13 hours preparing a tax return, six of which account for recordkeeping. For the average business taxpayer, it bumps to 23 hours, 12 of which account for recordkeeping.
And when it comes to alternative investments, tax preparation is a year-round process. Unfortunately though, most financial advisors, CPAs, and investors find themselves scrambling until the last moment chasing documents to ensure taxes are filed properly. But it doesn’t have to be that way.
AltExchange CEO Zak Boca shares how investors, advisors, and CPAs of alternative investments can simplify taxes and save headache for years to come.
1. Know all investments
There’s nothing worse than thinking you’ve completed your clients’ (or your own) taxes, only to realize you’re missing a K-1 for a forgotten private equity investment.
That’s why keeping track of all investments – including traditional investments like stocks and bonds, as well as alternatives like real estate, crypto, and private funds – is imperative when it comes to handling complex portfolios.
Aggregating all investment details ensures advisors, CPAs, and investors aren’t missing any last minute details when it comes to filing taxes.
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