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.
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 drives 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.
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.
Organizational Costs/Startup Costs
We assist clients in identifying organizational and startup costs, determine if the costs should be capitalized, expensed or amortized for tax purposes, and make the appropriate elections.
All businesses will one day either change ownership or liquidate. SVA works with our clients to plan for their businesses' future, whether that is passing it along to the next generation, adding or reducing individual owners, or winding down operations. With advance planning, our valuation experts can help business owners increase the value of their business to maximize the selling price. In addition, SVA can assist in proactive analysis and development of a company's buy/sell and operating agreements to avoid confusion and problems in the future.
Business Tax Credit Strategies
Whether you need to reorganize your business or defer tax on a sale, SVA provides a wide array of business tax strategies.
We work with clients to be certified and claim 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% federal credit) or certified historic structures (20% federal credit).
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 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.
Wisconsin Manufacturing Credit
Beginning in 2013, Wisconsin has a new tax credit for manufacturers and those who use agriculture property. The Wisconsin Manufacturing Credit applies to those businesses assessed as a manufacturer or who own or lease agriculture property in Wisconsin. If the business is a partnership, LLC or S Corporation, the credit will pass through to its owners. This credit is a percentage of “eligible qualified production activities income.”
Business Tax Planning Strategies
BUSINESS IMPACT: Minimize Tax Impact
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.
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.
Multistate/Nexus Tax Planning
Many companies do business in states other than where they are located – it’s part of growing your company, competing in a larger marketplace and making smarter business decisions. Service providers have a much lower threshold than what a typical “tangible goods” company faces when determining whether they are subject to taxation in a given state. Our professionals can assist you in determining your company’s multistate tax situation, take steps to insulate your activities from overzealous states, and minimize your overall state tax liability.
Stock Incentive Planning
We work with clients to determine the best stock incentive plan for the company and its 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.
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.
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.
We work with closely held/family businesses to transition the business by providing innovative planning, valuations, restructuring, evaluation of tax consequences, retirement planning, tax planning, and cash flow projections.