To be successful in today’s market, business owners must be business-savvy and tax-savvy, too. Navigating an intricate tax landscape requires mindful thinking and creative solutions from leading corporate tax advisors. The complex rules, never-ending reforms, heightened regulation, and enforcement leading to disputes with the IRS often impact your bottom line.
Finding a team of tax attorneys in Ohio with diverse knowledge can help Ohio business owners reduce their tax burden and avoid tax issues through careful planning.
Our tax attorneys have the knowledge and experience to help guide businesses and individuals in most areas of taxation. As part of our proactive approach, Carlile Patchen & Murphy LLP encourages year-end sessions to review your tax planning needs. We focus on helping you avoid problems and keeping your taxes low. We are prepared to help you with every aspect of your planning, including informing you about current statutes, regulations, and cases to help guide you and your business.
Our tax lawyers are experts at tax planning relating to the organization and structuring of entities, as well as in mergers and acquisitions, reorganizations, and other dispositions. We further advise on the tax aspects of business succession planning through preparation, review, and negotiation of instruments such as operating agreements, shareholder agreements, employment contracts, buy-sell agreements, business succession plans, estate plans, and qualified and nonqualified deferred compensation arrangements. We help structure and negotiate virtually all types of business transactions to be consummated in the most tax-advantaged way possible.
We regularly advise on such matters as:
The taxation law team at Carlile Patchen & Murphy LLP regularly advises as to the tax considerations involved in choosing between doing business as an entity taxed for federal income tax purposes as a C corporation, S corporation or partnership (such as multi-member limited liability company that has not elected to be taxed as a corporation). We also advise business owners as to the tax considerations of converting from one form of entity to another.
A debt restructuring can result in debtor taxation without any receipt of cash if not carefully structured. Our corporate tax attorneys work to advise debtors regarding bad debt deductions and income arising from the cancellation of indebtedness because of business debt restructuring and workouts. We advise on reporting obligations to assure compliance with the law, while minimizing the adverse tax consequences.
Skilled employees are the lifeblood of any business. A large component in retaining such employees is the executive compensation and employee benefits arrangements provided. We regularly advise business owners and executives on the tax-advantageous forms of executive compensation, as well as drafting and reviewing plan-related documents, including summary plan descriptions, election forms and IRS and Department of Labor documents.
Internal Revenue Code Section 1031 permits the exchange of real property used for business or held as an investment solely for other business or investment property that is the same type, or “like-kind,” with a deferral of tax liability that would ordinarily arise from the sale of the first asset. (Pursuant to the Tax Cuts and Jobs Act of 2017, gain or loss deferral is now available only for exchanges of real property and not to exchanges of personal or intangible property.) Our experienced tax attorneys can advise you on structuring a like-kind exchange that meets IRS requirements. We regularly help our clients with documentation requirements, meeting deadlines and minimizing the risk of loss of exchange funds.
Our experience in advising clients on structuring a like-kind exchange that complies with IRS requirements includes:
Carlile Patchen & Murphy LLP represents businesses and individuals in state and federal tax audits. Our tax lawyers are well versed in state and federal voluntary disclosure programs that provide significant relief, including Ohio income, sales and use tax disclosure programs, the federal employee classification disclosure program, and the federal foreign bank account disclosure program.
We have the skill and experience to work out a negotiated settlement with the IRS and state taxing authorities when it is in the best interests of our clients, combined with the ability to litigate tax disputes. We receive regular referrals from accountants and other lawyers – and have had great success in reversing adverse audit results upon appeal within the IRS and negotiating favorable resolutions with state taxing authorities.
The Low-Income Housing Tax Credit, New Markets Tax Credit, Historic Rehabilitation Tax Credit, and recently-created Qualified Opportunity Zones program have fueled the development of affordable housing and historic preservation properties and made investment capital and loans available to businesses in qualifying low-income communities.
We have assisted developers in financing affordable housing projects, from applying for and obtaining low-income housing tax credits to financing the development and operation of the completed projects through private and public lenders and institutional investors. Our clients have frequently benefited from combining the Low-Income Housing Tax Credit with the Historic Rehabilitation Tax Credit.
We regularly represent affordable housing management companies and owners before state housing finance agencies in connection with ongoing operational requirements and audits imposed by the IRS. We also are experienced in negotiating the exit of investors and the refinancing of project indebtedness at the end of the 15-year Low-Income Housing Tax Credit compliance period.
Our clients have benefited from the New Markets Tax Credit in obtaining loans used for commercial real estate rehabilitation and new commercial real estate construction in the low-income communities they serve.
The complicated world of trust and estate taxation can be hard to navigate at times, but our expert attorneys are here to help. We often advise clients and their family members about the importance and benefits of various gifting or inheritance scenarios, and ensure our clients understand the taxation of each.
An estate tax is a tax on property transfer at an individuals death. Accounting for everything you own or have interests in upon date of death, the fair market value of these items are totaled to determine the gross estate value. Property accounted for may consist of cash and securities, real estate, insurance, trusts, annuities, business interests and other assets.
Once the gross estate value is accounted for, certain deductions are allowed. These deductions may include mortgages and other debts, estate administration expenses, property that passes to surviving spouses and qualified charities.
Most relatively simple estates do not require the filing of an estate tax return, but those whose exceed the current taxable rate are required.
The gift tax is a tax on the transfer of property to another while receiving in return nothing, or less than full value. This applies whether the donor intends the transfer to be a gift or not.
Beneficiaries of a trust typically pay taxes on the distributions received from a trust’s income, rather than the trust itself, but are not subject to taxes on distributions from the trust’s principal.
Executors of wills or administrators of trusts held for a decedent are considered fiduciaries because they hold money or other assets on behalf of a beneficiary. Fiduciaries are required to file and pay any applicable taxes before transferring the trust or estate’s assets to the heirs. Not all estates and trusts are taxable, some may be exempt from filing requirement if their taxable income falls below a specified limit.