Tax planning means different things to different people.
— A CPA/accountant/EA typically thinks of tax planning as doing a tax return for a client and sending them the bill for the taxes due. Some might recommend a SEP IRA or SIMPLE Plan, but they typically do not deal with real tax planning.
— An attorney thinks of tax planning as doing someone’s living trusts so the client can maximize estate tax exemptions.
— A financial planner/insurance advisor typically thinks of tax planning as the use of a 401(k) plan.
What Advanced Tax Consulting, LLC does is individually customized. When we deal with tax planning we hit on a number of different topics to make sure we are being PROACTIVE not REACTIVE when it comes to tax planning. We accomplish our client’s objective through a professional team approach.
Advanced Tax Consulting, LLC offers their expert planning on the following tax benefits and more.
Cost Segregation is a commonly used strategic tax planning tool that allows companies and individuals who have constructed, purchased, expanded or remodeled any kind of real estate to increase cash flow by accelerating depreciation deductions and deferring federal and state income taxes.
Section 170(h): Conservation Easement
“Conservation easement” is the generic term for easements granted for outdoor recreation, natural habitat, open space, scenic and historic preservation of land and buildings. Conservation easements permanently restrict how land or buildings are used. The “deed of conservation easement” describes the conservation purpose(s), the restrictions and the permissible uses of the property. The deed must be recorded in the public record and must contain legally binding restrictions enforceable by the donee organization under state law.
The property owner gives up certain rights but retains ownership of the underlying property. The extent and nature of the donee organization’s control depends on the terms of the conservation easement. The organization has an interest in the encumbered property that runs with the land, which means that its restrictions are binding not only on the landowner who grants the easement but also on all future owners of the property.
Taxpayers can use an interest charge domestic international sales corporation (IC-DISC) to obtain a tax incentive available to manufacturers, producers, resellers and exporters of goods that are produced in the United States with an ultimate destination outside the United States. Taxpayers can also use IC-DISCs to defer the recognition of income related to foreign sales, However, this item focuses primarily on using IC-DISCs to reduce the income tax liability of a corporation’s shareholders by converting ordinary income into qualified dividend income.
Tax Efficient Investments
Tax efficiency is essential to maximizing returns. Due to the complexities of both investing and U.S. tax laws, many investors don't understand how to manage their portfolio to minimize their tax burden.
Simply put, tax efficiency is a measure of how much of an investment's return is left over after taxes are paid. The more that an investment relies on investment income - rather than a change in its price - to generate a return, the less tax-efficient it is to the investor.
Creditor protection refers to laws that protect both the creditor and borrower in case of payment defaults. These laws are referred to as creditor protection. Creditor protection is a collective term that is used in two different ways. One common use has to do with the various resources that provide debtors with an equitable amount of protection from creditors in the event that the debtor is unable to pay off an existing obligation according to the terms and conditions related to the transaction. The other application of this term has to do with the protection of creditors, in terms of limiting the loss incurred when a debtor defaults on an outstanding debt.
Captive Insurance Companies
A captive insurance company is a company that provides risk-mitigation services for its parent company. A captive insurance company may be formed if the parent company is unable to find an outside firm to insure against a particular business risk; if the parent company determines that the premiums it pays to the captive insurance company are sufficiently deductible; or that the insurance the captive insurance company provides is more affordable or offers better coverage.
Family Limited Liability Company
The family limited liability company (“family LLC”) is a form of business or investment entity ownership, which seeks to provide its owners (“members”) with enhanced protection from creditors and, in some cases, substantial estate and gift tax savings.
The Charitable LLC
Charitable LLC (CLLC) is a proprietary comprehensive tax, estate and charitable giving plan which has evolved for over nearly twenty years. The CLLC is a structure which creates the following benefits for you.
- A current income tax deduction which avoids up to 50% of your annual tax for assets you contribute.
- Assets contributed grow without tax.
- Appreciated assets contributed can be sold or liquidated without tax.
- Assets are exempt from gift and estate tax.
- Assets are creditor and divorce protected.
- Client and heirs maintain total control over the assets transferred to the CLLC.
- Client and heirs will make substantial charitable gifts to their preferred designated charities.
1031 Exchanges and M 453 Installment Sale
Section 1031 of the U.S. Internal Revenue Code allows investors to defer capital gains taxes on the exchange of like-kind properties. 1031, or tax-deferred, exchanges hold great advantages for both investors and REALTORS®.