Trust Advisory (How To Save Thousands In Tax)
Trust design and structure consultation as based upon tax minimization strategies.
We partner with your attorney to help with designing Charitable Remainder Trusts, A/B Trusts, Decedent Trusts, Complicated Trusts and Simple Trusts.
We make sense out of complicated wealth management structures. We can handle your trust funding, bank account setup and daily and monthly bookkeeping to prevent commingling of funds.
Many times attorneys set up complicated asset protection structures for their clients. However, during the initial design phase, the attorneys forget to consider the tax implications of the design.
We assist you and your attorney in developing wealth management structures that not only protect assets, but also limit the taxation of the beneficiaries of said trust income. Every step of the way, from design, through setup, thru implementation, thru funding of the trust, we make sure that all steps are done according to IRS guidelines so that none of the structures can have their corporate veils pierced from such things as commingling of funds and/or mismanagement of the trust in question.
CASE STUDY #3
‘Travis” a former professional ball player, had paid a law firm thousands of dollars to implement a complicated tax minimization structure of LLC’s, Limited Partnerships, a C Corp and 2 trusts. The main investment holdings were in real estate and real estate development. While the structure was sound from an asset protection standpoint, the attorneys hadn’t considered the tax implications of the flow of the monies between the structures.
There were a few entities with large losses. As a result of the lack of tax foresight, Travis would not have been able to take advantage of these losses on his personal tax return.
To correct the errors in planning, we restructured the flow of the monies and as a result, Travis realized the following:
TAX SAVINGS: $75,000
Consulting (How to Save Thousands in Tax)
CONSULTING – BUSINESS
We can assist you with managing your business from the financial and accounting standpoint. We act as your “outside controller” giving you insight into your business when you may not be able to afford a controller or business adviser.
We can clarify income & expenses and cash flow, helping you to set budgets and projections, while you maximize revenues and reduce costs. When you become a monthly client, we meet with you every month and help you grow your business, whether it’s a start-up that needs corporate filings and tax i.d.’s to a seasoned business that is looking to get to “the next level” of success, we can help.
CONSULTING – PERSONAL FINANCE
We help investors maximize their ROI (return on investment) by minimizing the tax hit from the sale of securities. We work with your stockbroker to devise a plan of when to buy and sell from a tax standpoint.
Picture this, you just checked your stock portfolio and although you have many “winners” that your stockbroker has sold and locked in gains for, you also have quite a few losers which you are still holding. How can you take advantage of the losers from a tax standpoint?
One solution would be for you to sell the losers as well and lock in the losses so that they can offset the other investment income on your tax return. Sounds easy, well it is. As part of the services we provide as a Culpepper & Associates client, we prepare a tax return for you in Sept/Oct so we can estimate what your taxes will be and take measures to reduce them. In this case, we would also analyze your portfolio and determine which loser stock could be sold and give you the highest reduction in taxes.
CASE STUDY #1
“Maria”, a new client, had brought us her tax return info in March so that we could prepare her tax return. Upon completion of the tax return, we informed her that she would owe an extra $20,000 in taxes (above normal) as she was recently divorced and had to sell off many of her winners to pay expenses of her deadbeat ex-husband. Right after hearing the news, Maria began to cry. She confided in us that she had no monies left to pay the taxes and would have to sell other stocks as well. Upon review of her remaining portfolio of loser, it was determined that had she met with us in Sept/Oct of the prior year, we could have recommended she sell off all her loser stocks as well, so as to offset the winners and thus reduce her tax.
ESTIMATED TAX SAVINGS: $20,000
P.S. Maria has now adopted the new strategy.
Real Estate Advisory (How to Save Thousands in Tax)
We help investors maximize their ROI (return on investment) by minimizing the tax hit from the sale of real estate. We can also assist with cash flow analysis and valuation determination. We can also help you to determine whether to buy or sell a property.
With our real estate advisory services, we can assist you in tax consultation of all types of real estate transactions including 1031’s, installment sales, structuring notes and other complicated transactions.
By considering the tax consequences of a transaction before its completion, we can drastically reduce the tax liability of the transaction.
We can also do the bookkeeping for real estate holdings and prepare financial statements as well.
Please contact us for more information on how we can help structure your real estate transactions for maximum tax savings.
CASE STUDY #2
Before she became our client, “Jane” sold a home in CA for a large gain. Thus the sale put her into the 33% tax bracket as opposed to the 15% tax bracket she was normally in. Because of the increase in her income, she had to pay an additional $75,000 in tax ($40,000 from the capital gain and $35,000 from the increased income tax). Had she been our client, we would have advised her to do an installment sale so she would have only recognized a little of the gain each year and then she would have stayed in the 15% income bracket.
ESTIMATED TAX SAVINGS: $35,000
P.S. Jane is now our client and we have structured her current deals so that she can take advantage of the tax-savings scenario we outlined above
Whether your business needs bookkeeping services, payroll or tax preparation, we are with you all of the way. We can also provide temporary onsite help, as well as provide a temporary or part-time Controller to oversee your accounting department.
Accounting, Payroll, Tax Preparation
Whether its monthly accounting services, bookkeeping, preparation of financials, payroll, or tax preparation, we can assist you in having piece of mind in knowing that your financial needs are being met.