How To: Identify clients who should make PTE elections

As we approach the end of the year, tax accounting AI tools can simplify your tax planning and enhance the financial strategies for your clients. By using good tax accounting AI tools, you can easily deal with any scenario when making tax plans for your clients in the next year.

Using AI To Find Clients Who Should Make PTE Elections

Pass-Through-Entity (PTE) elections can reduce taxes for clients with significant passive income, like those who earn rental or interest income. They can also simplify the tax filing process for entities with multiple owners who face complex filing requirements.

PTE elections allow these clients to streamline their tax reporting and mitigate filing errors, making this a crucial aspect of end-of-year tax planning.

Tax accounting AI tools can boost the benefits of PTE elections by finding tax-saving opportunities and recommending the optimal time for a client to make a PTE election.

How To Use TruePrep

1. Upload your client base into TruePrep using the “File Uploader” button.

2. Once your client base is loaded into TruePrep, copy and paste the prompt into the search bar: “Show me clients who earn rental income.”

   Pro Tip: Work collaboratively with your team by saving this prompt to your “Saved Prompt” list. When they log into TruePrep, they can run the search on their own and add columns to the report when they have conversations with clients.

3. TruePrep will auto-generate a list of your clients who earn rental income. Export this list using the “Export” button.

4. Now you can divide this list among your staff or use it as a reference yourself to be proactive about tax planning and PTE elections with clients.

Want to learn more about using tax accounting AI tools for strategic tax planning? Check out The Tax Pro’s Guide To Q4 Tax Planning Using AI or request a demo by clicking the button below.