Business Tax Strategies
Lower your taxes through smart planning strategies
Whether you need to reorganize your business or defer tax on the sale of assets SVA provides a wide array of business tax strategies.
Business Structuring Strategies
Accounting Method/Period Changes
We help our clients adopt changes in their accounting method or period for tax purposes. We advise them of the facts and circumstances the IRS considers to allow the change, prepare the required elections and forms, and get IRS consent to change the method. We also fully explain the tax consequences of making the change, so that any issues can be addressed and planned for proactively.
Consolidated Tax Returns
We prepare and review an accurate return for multi-entity consolidated groups in accordance with the complex tax laws by using the most highly qualified personnel. We stay abreast of new developments in tax law so that any requirements or beneficial planning techniques are made available to our clients.
Entity Selection, Formation and Structure Planning
We evaluate the different types of entities available and how they should be formed. We evaluate any changes and develop ideas on how to structure the business as it grows to meet client needs, both now and for the future.
Employee Benefit
In order to attract the best employees possible in a competitive market, often it comes down to what the company offers in employee benefits that drive the decision to accept the offer or take a competitor’s. Our experienced professionals can help implement benefit programs that make sense for the company and the employees.
Executive Compensation
We work closely with businesses to determine appropriate executive compensation including incentives, options and benefits. We help tailor a plan to meet and balance the objectives of the business as well as the executive.
Inventory Method Planning (FIFO, LIFO, etc.)
Inventory issues can have significant consequences to your business. We can help evaluate the best inventory cost method for your business and the industry, for book and tax purposes.
Net Operating Losses
We assist clients in planning for losses, realizing their maximum tax benefit and determine if the loss should be carried back or forward. We will also prepare the loss carry back claim or make the carry forward election.
Organizational Costs/Start Up Costs
We assist clients in identifying organizational and start up costs, determine if the costs should be capitalized, expensed or amortized for tax purposes, and make the appropriate elections.
S-Election
The S-Corporation classification is a valuable tool for eligible taxpayers to take advantage of the corporate structure while still maintaining control over the direction of your business and its cash flow. We can determine whether the business is eligible and file the necessary paperwork to make this election.
TOP Planning Strategies
Alternative Minimum Tax (AMT)
This tax runs parallel to the regular tax and is very complex. We provide comprehensive and creative planning, to the extent possible, to minimize this tax. We prepare extensive projections that may involve several years and many different scenarios.
Buy vs. Lease
There are a number of factors that must be considered in making a buy vs. lease decision. The risk of obsolescence, capital needs, accounting treatment, and the useful life of an asset are all factors that must be taken into account when this decision comes up. We can help analyze the situation and give insight into what will make sense for the business needs.
Depreciation Method Planning
We help determine the best depreciation method and incentives that will suit your business. We consider your industry and look at various scenarios to get the most tax savings possible. We work with extensive depreciation software that allows us to evaluate book, federal, state and Alternative Minimum Tax (AMT) depreciation considerations.
Inventory Uniform Capitalization Planning
We can help determine the best method for capitalizing additional inventory related costs for tax purposes.
Like-Kind Exchanges
The tax-deferred exchange remains the most important tool in planning for non-personal real estate transactions. We work with clients to navigate the many rules and regulations that affect these transactions. We also will act on our clients’ behalf to arrange and act as a liaison between the various other professionals required to complete the transaction according to strict IRS rules.
Manufacturing Deduction (Section 199)
If your business produces goods, develops software or constructs property in the United States, regardless if they are exported, Congress has provided a means to significantly reduce your tax bill. The manufacturer’s deduction replaced the extraterritorial income exclusion as a way for domestic manufacturers to reduce their income tax liability for producing their products within the United States.
Stock Incentive Planning
We work with clients to determine the best stock incentive plan for company and the employees and the best structure for the plan. We work with stock option plans, stock appreciation right (SARS) plans, phantom stock plans, stock award plans, etc.
TOP Business Transactions Strategies
Acquisition of a Business
We work with clients and their advisors to plan for acquisitions and structure them in the best possible way for tax purposes. Our services range from ideas on the structure of the transaction to assistance with negotiating the purchase price to allocation of the purchase price. This involves research, analysis, due diligence and preparation for tax purposes.
Mergers/Reorganizations
We provide assistance in planning for tax free mergers and reorganizations, split ups, acquisitions, ownership changes, when clients are changing their structure for various efficiencies and many other situations. We research and analyze these complex transactions, as well as prepare the tax return.
Real Estate Transactions
We provide tax planning advice to real estate related entities as well as their partners, shareholders and members. We tackle numerous tax issues, including the structure of the transaction, various allocations, like-kind exchanges and low-income housing projects.
Related Party Transactions
There are special rules in place for transactions between related parties, most commonly loans or sales and purchases. The IRS has more strict rules in place for these kinds of transactions to discourage the structuring of them in an abusive manner. We help our clients understand the correct way to set up such transactions, so that they will withstand the scrutiny of the IRS.
Sale of a Business
We work with clients and their advisors to plan for the sale and structure it in the best possible way for tax purposes. Our services range from ideas on the structure of the transaction to assistance with negotiating the purchase price to allocation of the purchase price. This involves research, analysis, due diligence and preparation for tax purposes.
Succession Planning
We work with closely held/family businesses to transition the business by providing innovative planning, valuations, restructuring, evaluate tax consequences, retirement, tax, and cash flow projections.
TOP Tax Credit Strategies
Energy Credits
We work with clients to be certified and claim and energy tax credits that are available for their respective business.
Fuel Tax Credit
We help identify and file refund claims for fuel used by business for off-road purposes where fuel taxes were paid.
Low-Income Housing Credit
One of the strengths of our real estate business has been our active involvement in supporting low-income housing tax credit (Section 42) developments from the inception of the program. Since then, our team has assisted clients with hundreds of developments that range from new construction to the rehabilitation of older buildings. These clients include nonprofits, community agencies, and for-profit developers, some of which incorporate mortgage revenue bonds and all of which contain a wide variety of housing (i.e., specialty housing, family developments, scattered sites, and senior and assisted living).
New Markets Tax Credit
The new markets tax credit (NMTC) program was established to entice new business capital to low income communities, to facilitate economic development in these communities and encourage investments in high-risk areas. The credits are earned over a seven-year period based on qualified, low-income community investments being made to a qualified, active, low-income community business.
Rehabilitation Tax Credit
The rehabilitation tax credit is earned for qualified rehabilitation expenditures on pre-1936 constructed commercial buildings (10 percent federal credit) or certified historic structures (20 percent federal credit).
Renewal Community Tax Credit
The Renewal Community Employment Credit is a credit for 15 percent of the first $10,000 of wages for qualified workers who work and live in the “zone.” The area has been expanded retroactive to 2002 in many cities and can have a tremendous impact on a business and the labor that is hired. We will help you determine which employees are eligible and whether or not the business qualifies.
Research and Development Credit
We will define research and development for your business, identify qualifying research and development projects, quantify the applicable expenses, calculate and claim the credit, and can help develop a system for tracking the expenses.
State Tax Credits
We can help you identify what credits or incentives your business is entitled to in order to minimize state taxes.
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