A new client, operating as an LLC, was facing substantial self-employment taxes towards the end of the financial year.
We employed a multifaceted strategy, including a late-S election backdated to the start of the year. This allowed the client to draw a salary and benefit from the 20% QBI deduction. Additionally, we optimized withholding to reduce estimated payments and maximized the SEP IRA contribution.
The outcome was a substantial reduction in tax liability, saving around $80,000 on a taxable income of approximately $500,000. This case exemplifies our proficiency in utilizing tax laws to benefit LLC structures significantly.
A client incurred considerable expenses in software development, a potential avenue for tax credits.
We meticulously prepared the R&D Tax Credit documentation, ensuring maximum benefit for the client.
The result was a significant tax credit, a portion of which offset the client's payroll tax expenses. This case showcases our skill in identifying and applying specialized tax credits for substantial client benefits.
A fast-growing startup was on the verge of acquisition by a private-equity group, but its financial records were in disarray.
Our intervention was comprehensive: cleaning up the books, preparing taxes, and assisting in due diligence inquiries from the buyer.
Our expertise not only streamlined the acquisition process but also ensured the startup's successful sale for millions of dollars. This case underscores our ability to transform financial chaos Into profitable opportunities.
A client faced a significant loss of $250,000 from the sale of her personal home. Under normal circumstances, such losses aren't tax-deductible. This presented a complex challenge, both financially and in terms of tax strategy.
Our approach was innovative yet fully compliant with tax regulations. We advised the client to advertise the property for rent, transitioning it from a personal residence to a potential rental property. Although the property was never actually rented out, this strategic move was crucial.
When the property was sold, we declared a business property loss of $250,000. This strategic classification reduced our client's tax liability by approximately $75,000. Despite an IRS audit, our position was vindicated: the attempted rental qualified the property as a rental business, making the loss fully deductible. This case highlights our expertise in identifying and leveraging tax regulations to our clients' advantage.
