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corporate tax planning iconBUSINESS TAX PLANNING

WE FOCUS ON YOUR BUSINESS TAX PLANNING, SO YOU CAN FOCUS ON BUILDING YOUR BUSINESS!


Download our Tax Reform Law Comparison Guide

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Wondering how the newly passed tax reform bill will be affecting you and your business? Download this report - it outlines all of the major changes.

DOWNLOAD THIS GUIDE

Download our Understanding New Rules Regarding Business Entertainment Deductions eBook

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The rules for deducting business entertainment-related expenses have changed under the Tax Cuts and Jobs Act (TCJA). Find out how your business is affected and what you can still deduct.

Download this eBook

Many of our certified public accountants have earned master’s degrees in taxation (MST) and hold advanced certifications. This depth of expertise and experience, combined with knowledge of current and proposed tax laws, means we are always looking to find the right strategies for you, whether it’s taking advantage of business deductions or finding tax-friendly ways to run your business.

SVA emphasizes year-round tax planning with a proactive approach to help reduce your tax obligations. Our tax professionals have the expertise and experience to identify tax issues and solutions for your specific situation. We strive to balance tax compliance, tax strategies and tax planning with an integrated approach – maximizing efficiencies and goals while reducing your tax liabilities in order to achieve the best after-tax results for your business.

The new Tax Cuts and Jobs Act signed into law on December 22, 2017 provides the most significant tax reforms since the Tax Act of 1986. These new sweeping changes will impact nearly everyone in the United States.  While tax simplification may be the result for some individual taxpayers, the tax changes that affect businesses are comprehensive and will require significant planning to maximize tax savings.

Here are some highlights of the new Tax Cuts and Jobs Act. For details of how they affect your business, it is important to contact an SVA tax professional:

Cuts the corporate tax rate: Corporate tax is cut and simplified to a flat 21% rate, effective January 1, 2018.

Reduces pass-through taxes: One of the most talked about changes is the 20% deduction for income taxed to pass-through entities. Essentially this means that income earned by business operations is taxed at the owner’s respective individual tax rates. Partnerships, S Corporations, Limited Liability Companies and Sole Proprietorships are all considered pass-through entities. This new deduction is available to all businesses that are structured this way; but as is the case with most tax laws, there are limits and certain exclusions that may apply. 

Strengthens Section 179 deduction: Section 179 deduction limits are raised to enable expensing of up to $1 million, and the phase out amount jumps to $2.5 million. Section 179 may now also be used on expenses related to improvements to nonresidential real estate.

Corporate Alternative Minimum Tax (AMT) is repealed: The 20% corporate AMT applied to businesses goes away entirely.

Bonus depreciation increased: From 50% to 100% on qualifying business equipment through 2022. This will decrease to 80% in 2023, 60% in 2024, 40% in 2025, and 20% in 2026. Bonus depreciation now applies to used items instead of only new ones; they just need to be placed in service for the first time in your business.

Expands use of cash-method accounting: Businesses with $25 million or less in annual revenue can use the cash method of accounting instead of the accrual method.

Reforms international taxation: Treatment of international income moves to the territorial system standard in which foreign investments are generally only taxed in the place in which they operate. The new laws allow tax deductions for certain foreign-sourced dividends, reduced tax rates for foreign intangible income and reduced tax rates for repatriation of deferred foreign income.

Due to the planning now needed to maximize these new deductions, all business owners are encouraged to schedule an appointment with one of our CPAs to review their particular situation.

CORE SERVICES


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 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.

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.

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.

Ownership Planning
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.

Energy Credits
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

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.

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.

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.

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, evaluation of tax consequences, retirement planning, tax planning, and cash flow projections.

Estate and Trust Tax Strategies

Taxes have a significant impact depending on the size of your estate. We help you prepare and plan by putting the right tools in place to make the transfer of your assets possible with the least amount of difficulty, administrative costs and taxes.

We take into consideration opportunities involving post-mortem planning that may save your estate significant tax expense. Post-mortem planning is also considered to help ease the tax liability for surviving spouses and beneficiaries.

International Tax and Foreign Reporting Services

Business entities and individuals have certain foreign reporting requirements and in some cases U.S. withholding is required on certain payments made to a foreign entity or person.  Very substantial penalties can apply if you are not aware of these requirements and fail to timely meet these reporting and withholding obligations.   Transactions with foreign persons are subject to complex tax rules and planning opportunities exist in various tax treaties.  The tax law also provides for certain incentives for export sales.

Through our network of specialists and international affiliates, our professionals can assist you in meeting these obligations and in international tax planning.

IRS and State Audit Assistance

Getting a letter from the tax auditor, whether it’s routine or for cause, is enough to make most business owners feel weak in the knees.

Our tax professionals put you on a more equal footing by representing you in an IRS or state tax audit.

Whenever possible, we schedule the audit in our offices to minimize the disruption to your business and ensure ready access to our tax professionals. We assist you in gathering, organizing and presenting all the necessary documentation to make the audit go as smoothly as possible.

Tax Exempt Status

“Nonprofit” encompasses a wide variety of concerns including education, health and social services, government agencies, foundations, membership associations, and religious organizations. Generating sufficient revenue to provide services – while simultaneously qualifying for federal tax-exempt status – requires a clear commitment to your organization’s mission.

Our professional advisors work closely with management and the board of directors to help organizations articulate their vision. We work with you to present your organization’s activities and mission to assist you in presenting the organization in such a way as to be recognized as tax-exempt by the Internal Revenue Service.

 
Measurable Results.
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Measurable Results.

"SVA provides proactive sound financial and business advice. They help me gauge what we are doing well, what we can do better, and they develop strategies to guide my company into the future."

Kim Lobdell, President, KL Engineering

KL Engineering

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Measurable Results.

"We were fortunate to partner with SVA. Without their guidance, we would not be in the position we are today – the largest endodontics practice in Madison."

Dr. Nabeel Khan, Partner

Capital Endodontics

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Measurable Results.

"We specialize in affordable housing and SVA is a leader in tax credit knowledge. Having SVA as a partner is integral to our success."

Kristi Morgan, Chief Operating Officer
Mirus Partners

Mirus Partners

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Measurable Results.

"SVA provides our accounting and back office functions including bill paying, account reconciliations, and compensation calculations. They also been instrumental in strategic planning for business growth and infrastructure development. "

Dr. Sally McKinnon, Partner
Madison Radiologists

Madison Radiologists

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Measurable Results.

"Working with SVA gives us one less thing to worry about. They helped us cut our overhead by 6.5% and created effective business processes allowing us to focus on the core of our business- taking care of our patients."

Dr. John Olson, Managing Partner

Madison Anesthesiology Consultants

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Measurable Results.

"We rely on SVA’s forward-thinking approach. With their assistance, we restructured our business creating tax and cost savings."

John Stoker, President
Daryl Prusow, Vice President

Victory Homes

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Measurable Results.

"We rely on SVA’s technical expertise and practical advice to help us navigate the complex issues involved in the real estate business."

Mike Morey, President

Oakbrook

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Measurable Results.

"Our bank recommended SVA and we have never looked back. SVA doesn’t always tell us what we want to hear, they provide the advice we need to grow our business."

Fred Manske, Owner

Manske Machinery Service

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Measurable Results.

"SVA provides top to bottom care by being hands on and thorough. Whatever our need, they respond quickly and efficiently. They helped us reduce our overhead by 6%."

Dr. Paul Elcano, Executive Partner

Racine Dental Group

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Measurable Results.

"SVA’s valuation of our company and their expertise in loan structuring was instrumental in maximizing the tax benefits as we transitioned ownership."

Scott Stevenson, Owner

Kleenmark

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Measurable Results.

"SVA provided financial statement stress testing scenarios including how interest rate fluctuations and federal subsidy changes might affect our bottom line. Our board now has the information they need to make informed decisions."

Mary Wright, President

Wisconsin Housing Preservation Corp. (WHPC)

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Measurable Results.

"SVA streamlined our largest and most complicated fundraising effort by developing an effective method of tracking inventory and sales."

Deborah J. Gilpin, President & CEO

Madison Children's Museum

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Measurable Results.

"SVA has a reputation in the dental community that is second-to-none. They have exceeded our expectations and truly have been a catalyst for our business."

Dr. Lisa Teel, DDS, MS, Owner

Meridian Endodontics

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Measurable Results.

"I would recommend SVA because no question is too small. They have the same core values as BC Adhesives and we trust their opinions and recommendations."

Melissa Shibilski, Finance Manager

BC Adhesives

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Measurable Results.

"SVA was our first phone call. They have been with us since Day 1 and without them I [Mark Nolen] don't know where we would be."

Mark Nolen, President & CEO

Wisconsin Brewing

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Measurable Results.

"We saved $20,000 in taxes and deferred over $500,000 of taxable income with the help of SVA. They are a tremendous partner for our company."

Mark Barnes, President/CEO

Barnes

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Measurable Results.

"My clinic saves over $10,000 in taxes yearly with the help of SVA. They help me improve my profitability."

Dr. Jesse Sondel, DVM/Owner

Sondel Family Veterinary Clinic

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Measurable Results.

"We hire professionals who bring knowledge to the table that we don’t have. SVA continuously delivers a well-informed, objective perspective we value which makes us continuously evaluate our path."

Lincoln Fowler, Co-Founder

Colectivo Coffee

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Measurable Results.

"SVA’s reputation and expertise with nonprofits made them our first choice! Their ability to turn the work around in a condensed timeframe, and in a way that all Board of Director members could digest easily, has made them an invaluable resource to us."

Jenni Collins, Executive Director

Madison Public Library Foundation

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