the Paperwork is a tool.
This simple statement from our founder, Curt Anderson underscores a critical philosophy at FAL; that our value to our clients lies beyond the numbers. Most CPA and accounting firms view paperwork as the deliverable. For us, tax returns and financial statements are tools we use to generate ideas and advisement that lead to bottom line value for our clients.
A homebuilder developing a 10k acre housing development in Colorado needed a strategy to help realize maximum capital gain treatment. FAL created a multi-entity structure that separated the ordinary income treatment of development activity from the capital gains attributable to land value. In doing so, we were able to maximize capital gains income and tax treatment. The resulting savings in federal tax will be approximately $40-$50 million.
We advised a developer that was in the midst of a $300 million bulk sale of assets to restructure the transaction in a manner which deferred a significant portion of the potential tax and created a tax deferred investment pool that subsequently appreciated significantly in value. Upon sale, the appreciation in value generated cash proceeds which more than satisfied the deferred taxes.
In addition to the federal energy credits available to homebuilders, associated industries can also benefit from federal tax benefits. We recommended an architectural firm client negotiate with its governmental clients to utilize the federal energy tax benefits associated with energy efficient commercial buildings.
We also advised a new architectural firm client to review its qualification for federal research and development tax credits. The review for a qualified consultant resulted in tax credits in excess of $100,000.
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