 |
|
Success Stories Assisted a new client in obtaining tax refunds of more than $200,000 through Federal Empowerment and New York State Empire Zone tax credits. The company had not recognized that it was eligible for these valued credits. Our client targeting and implementation program has helped many other new client companies obtain tax refunds that they would otherwise have failed to claim.
A new client consulted with us on financial projections for use in a Private Placement Memorandum. Upon review of the structuring of the proposed transactions, we observed that the plan, if implemented, would result in serious adverse income tax liabilities. Millions of dollars of potential "phantom income" would have been created by the issuance of stock in the new company. We suggested alternative arrangements which eliminated all of the income tax liability, allowing the participants to receive the share ownership which was agreed upon in the original plan. The trustees of an employer pension plan retained us to review its investment portfolio and suggest changes to increase the plan's current yield, at minimal additional risk. Our advice for the reallocation of investment assets significantly increased the plan's annual yield and total return. The reallocation of assets also resulted in a further benefit for the trustees; enhanced protection from charges of breach of fiduciary duty, in that an allocation of pension assets must include "fixed income" as well as "equity" types of investments. With a combined $4,000,000 of available exclusions, a couple with assets of $2,800,000 assumed they were free of estate taxes. Shock set in when they discovered that a tax of $191,000 might be payable after the death of a second spouse. We proposed a few good tax planning ideas and simple changes to their wills, and the couple was able to reduce their U.S. estate tax exposure to $0.
Disparate interest in generations-old family enterprise with working and non-working stockowners were brought together under difficult circumstances to fairly and successfully negotiate a redemption of all of the non-worker stock ownership interests. The sellers, a group of older and middle aged individuals received millions of dollars to fund their individual retirement and other personal plans. Those plans are fulfilled primarily because the redemption made them possible. The "working" owners thus became the surviving owners of their business, working solely for themselves and their immediate families to continue building their successful business operations.
Please contact us: Tel: 212 594-8155
Our Focus | Business Services | Tax
Services | Client Diversity Copyright © 2000-06, Freeman & Davis LLP. All Rights Reserved Disclaimer |
