Taxation Case Studies

Operations in 50 states doesn't mean being taxed 50 times

A client operating in all 50 states needed help with the daunting task of tax planning and compliance for every state. AGH worked closely with our client's attorneys to redefine the corporate structure, minimizing tax liabilities while maintaining solid legal protection. We ultimately created five separate entities, which enabled us to allocate income between states in a way that helped reduce tax liabilities. Then, based on state laws, we suggested the best method of consolidating for state tax purposes allowing us to prepare tax returns for all 50 states in the most tax efficient manner.

Building a solid structure

While in a planning meeting with a media client, AGH learned that they were considering a merger. Our tax experts reviewed their entity structure and operating agreements and discovered that a merger could cause significant tax issues. Working closely with our client's attorney, AGH helped reorganize the company as an S Corporation, allowing a merger with limited tax effects and enabling the client to take some money out of the business.

Defer the tax to the max through a tax-free exchange

An investor client was about to sell a hotel for a substantial gain, creating a large capital gains tax liability. To help this group preserve its profit, AGH advised them to consider a tax-free exchange, which allows capital gain taxes to be deferred if another income-generating property is purchased within a specific timeframe. The investors decided to buy an apartment building, which not only deferred taxes but allowed them to deploy all of the investment capital to purchase another appreciating asset.