Tax Optimized Transactions
Tax consequences are frequently one of the most important considerations when decided whether to buy or sell an asset. Near the end of the year investors will often review their portfolios and sell off stocks with unrealized losses to harvest capital losses. Business owners will often choose to operate an entity in a given structure based largely on the tax treatment they hope to achieve and one of the primary points of contention in many mergers, acquisitions and dispositions is the tax structure of the transaction.
It is not uncommon for negotiations between buyers and sellers to break down when tax costs are not considered until late in the process. For this reason, it is important to address these issues upfront before a price is agreed upon.
Tax Optimized Transactions – Tax-Free Reorganizations
The Internal Revenue Code provides opportunity for taxpayers to reorganize in tax-free stock-for-asset or stock-for-stock consolidation, merger or acquisition. Ensuring that the structure of the agreement meets the requirements prescribed by the IRC can often afford tremendous tax savings.
We can provide expert advice on the costs and benefits associated with statutory mergers, asset acquisitions and stock purchases and assist in negotiations by explaining the tax implications associated with different structures.
Tax Optimized Transactions – Capital Loss Harvesting
Working in conjunction with our sister company, Podraza Financial Advisors, we can tax optimize your portfolio and investment strategy to improve the after-tax rate of return.
Tax Optimized Transactions – Tax Optimized Expansion
Taking advantage of provisions in the tax code we can help business owners accelerate depreciation and take advantage of tax credits aimed at stimulating the economy.
The tax code is seven times longer than the King James bible. Don’t make the mistake of overpaying for an asset or paying more than your fair share by ignoring tax implications in your financial planning process.
Call us today to find out how tax optimized transactions can improve your financial situation.
Tax consequences are frequently one of the most important considerations when decided whether to buy or sell an asset. Podraza CPA can provide expert advice on tax optimizing your investments and business endeavors.