Review of a client’s Trust documents revealed that certain provisions within the Trust documents were not drafted in accordance with the client’s desires. The Trust documents are currently being amended to be in line with the client’s desires.
A review of a client with multiple related business entities revealed that the structure of the inter-company transactions were not consummated at arms-length, resulting in a loss of asset protection among the entities. The transactions were appropriately changed and documented to achieve the desired asset protection among the related entities.
For a large agricultural client, I recommended separate methods of accounting for their farm operation (cash basis) and for their wholesale operation (accrual basis) resulting in a tax savings of just under 1mm.
When reviewing a new clients planned year-end tax strategy, I suggested that a pro-forma financial statement be prepared to determine if the tax strategy would cause the client to break their banks financial covenant ratios. Upon preparing the pro-forma, the tax strategy would have broken the ratios, so the tax strategy was properly changed before formal implementation.
For an S-corp with no basis among two shareholders, there were existing notes receivable totaling approximately 100k from the two shareholders that I recommended be distributed to the two shareholders resulting in no tax, as both shareholders were in the 0% capital gains tax bracket.
IFR ... Heads-up creative, not heads-down compliance