Tax Moves to Make in 4th Quarter? – REFS

3 Key Options for Your Customers

With year-end approaching, the time frame to implement tax saving strategies for 2022 is escalating.   What will your customers’ businesses do to best take advantage of tax planning opportunities in 2022?

REAL-LIFE METHODS TO MINIMIZE TAXES

Here are three typical situations that tend to happen near calendar year-end, using examples of how MyCFO helps our clients as their tax accountant (click each for extended details):

• Real estate transactions: It is common for commercial real estate deals to close by year-end, in order to achieve balance sheet and income tax goals of related parties.  Cashing out on your residential rental and commercial real estate properties seems wonderful until the tax bill arrives. MyCFO helps our clients to use all available avenues to minimize or defer the related capital gains tax, which can vary depending on your situation.  A popular option to delay such taxation is through a 1031 exchange (read more here).

• Mergers and acquisitions tax planning – Multiple partners, loans, and tax implications: Is your customer on the verge of buying or selling a company?  In this engagement, our client’s ownership was composed of three partners, each with loans to the business of different amounts, and an earnout (i.e., part of purchase price paid in future) to consider. Not only was a calculation of payout/partner necessary but structuring the deal to minimize taxes for the sellers was of paramount importance (read more here).

• Business restructuring/reconfiguration:  Perhaps your customer is restructuring around new business lines or customer segments; or reconfiguring to add/combine/dissolve business units.  Whatever the process, their goals are likely to boost innovation and, ultimately, financial performance.  In this client engagement, our client’s decades-old family business had expanded through vertical integration.  However, there were impending negative consequences to taxes and profitability . Part of MyCFO’s solution was to form a holding company, in particular considering the multi-state aspect of some of the companies. We also consulted with the client on tax issues related to future buyout options for family members looking to leave the business (read more here).

DON’T DELAY – CONTACT US TODAY!

Whether your customers year-end needs are in real estate, M&A, restructuring or other financial/tax goals, MyCFO can help.  We apply our decades of experience in innovative tax planning and preparation.  If this is the kind of innovative thinking and client-focus that your customer would like from a tax accountant, contact us.