Who are the professionals and specialists in tax exemption able to support you?
32 million taxpayers pay property tax on buildings each year, more than 150,000 households must pay property wealth tax, and approximately 40 million tax households draw up an annual income tax return, of which 18 million of them have to pay income tax. As you will have understood, taxes and duties represent a significant part of the budgets of French households, and when these charges accumulate, it is quite natural to wish to reduce them. By whom to be accompanied to optimize its taxation when the financial heritage is important? Here are some leads.
Tax exemption: Why be accompanied by a professional?
Tax exemption consists of the use of one or more processes to reduce taxes. It can be a tax deduction, a tax reduction, or a tax credit. Not sure that it is necessary to specify it, but these three processes are of course completely legal, and even set up by the State, in return for a participation in the financing of the economy, the improvement of the urban landscape, and of housing in a global way, in the fight for energy transition and the environmental struggle.
Implementing tax exemption systems accessible to all is an action to be promoted, in a “win-win” spirit. It is still necessary to know these systems, which raises the question of access to information, and in particular of the digital divide, the ability to understand and analyze it, the ability to carry out administrative procedures , etc. Also, having a significant financial and/or real estate asset and wishing to register in the various tax exemption schemes is one thing, achieving it is another.
Some of these systems are essential and are of more than obvious interest for all types of taxpayers. We will obviously think of life insurance. But other tax exemption products will only be profitable on a case-by-case basis, depending on the situation of the taxpayer, depending on the weight and diversification of their assets. This is why specialists in the sector can support highly taxed taxpayers to take advantage of these advantageous arrangements.
Tax exemption experts
In reality, tax optimization is generally only one aspect of the services they are able to offer. More generally, it is a wealth management service that they will offer, assessed by their perfect knowledge of the markets. They will thus be able to give advice on the content and management of assets, the decisions to be made, and will be able to optimize this assets thanks to the analyzes of financial simulators.
Wealth management advisor (CGP)
Wealth management advice is undoubtedly the most seasoned professional to seek advice from. For what ? Because he is a heritage expert. It will therefore not treat tax exemption as a central element, but rather as one of the components of perfect wealth management. And this is what the taxpayer actually expects: to preserve, even increase his wealth through interesting investments, the investment of which is thought out as a whole, in terms of taxation, tax exemption products, yield, expected performance , according to the financial markets. The CGP renders its prerogatives with a long-term vision, where the taxable taxpayer will think in the short term. He wants to tax. Yes, but sometimes, the immediate tax exemption produces capital losses, or a lower appreciation of the heritage in the medium or long term.
It is therefore a complete audit of the financial situation of his client that he will carry out. In absolute terms, he could even strongly advise you to part with one of the products in your assets if the funds can be reinvested in another much better performing sector. A nuance should be noted, however, because the border is fine: the wealth management advisor provides expert advice. It is therefore to be differentiated from the management company, which may manage the equity portfolio of its client.
e tax exemption firm
Yes, on paper, it is rather logical to think that this is the professional most suited to tax exemption. And that is surely true. However, two difficulties are encountered.
The first lies in the fact that he is precisely an expert in tax exemption. (Huh?) Yes, this is the marked difference with respect to the wealth management advisor. The tax exemption firm will not carry out an overall analysis of the heritage over the long term. Expert and knowledgeable about the various existing tax exemption products, he will advise on the best systems in force from which the existing heritage can benefit. The problem is taken the other way around, one might say.
Obviously, far be it from us to denigrate this professional who presents a real added value for the taxpayer who has a large and diversified heritage, which taxation does not spare. We could say, certainly too familiarly but without wishing to harm the two professions, both experts in their field, that the tax exemption firm deals with taxation on the surface, when the CGP deals with it at the heart.
The second difficulty encountered lies in the impartiality of the firm. Indeed, directing towards a tax exemption product also leads to orientation towards a type of investment product. It will therefore be necessary to ensure that the firm defends the interests of its client without being potentially influenced by the interests of its partners.
The bank
Yes of course ! All the same, it is she who has seen the patrimony of her client build up, and who has the view of the income it generates. With the development of various investment products, which overshadowed traditional savings products relegated to the bench of aging products (who said archaic?), banks quickly seized the opportunity presented to add a new string to their bow: a form of wealth management that includes advice on tax exemption.
The low value way in which we present this banking advice is probably self-explanatory as to the quality of this service. It has become more difficult now to obtain the services of a bank adviser on bank management. In many establishments, customer management has evolved to become much more generalized, much less individualized, to the detriment of customer relations, on a service that is nevertheless said to be local.
Also, tax exemption advice will not be the most sophisticated, nor the most seasoned with the bank. In addition, the choices of tax exemption products presented will often be limited.
online simulators
They will obviously not replace the expert advice of a professional, who will be able to give all the necessary explanations to better understand the interest of opting for one tax exemption product or another. However, the simulators will be able to carry out an asset audit, according to the information provided. These very comprehensive tools allow, at least initially, to get an idea of the appreciation of one’s assets, and of its capacity for return or performance over time.
The advantages of the online simulator: it is free, fast, accessible 24/7 from home, impartial and tailor-made. It is a good means of initial analysis, especially on a “modest” heritage. As soon as it becomes more substantial, it will be necessary to call on a physical expert.