Tax Planning and Compliance
Kulzer & DiPadova, P.A. has vast experience providing tax planning and compliance services. There is a complex relationship between business and personal goals and the tax laws. These issues make planning a challenge. To develop a sound business and personal tax plan for our clients, we work closely with each client and the client’s accounting, financial and insurance advisers. A number of the firm’s attorneys are also Certified Public Accountants.
The most common areas within Tax Planning and Compliance:
Individual Income Tax Planning
Working closely with our clients and their accounting and financial planning professionals, we develop and implement appropriate strategies to reduce, affect the timing of, or shift either current or future clients’ income tax liabilities. We recommend these strategies in light of the individual’s overall financial goals with due consideration of the tax consequences.
Individual Income Tax Planning, an ever-changing landscape…
Our federal and state tax system is an ever-changing landscape. We regularly review numerous tax strategies. We examine the viability of these strategies, consider how well they are accepted by the tax authorities and measure their realizable benefits. Armed with this information, we offer our best guidance to clients and their accounting and financial planning professionals.
Business Tax Planning
In an ever-changing tax environment, effective business tax planning is a constant effort. Advanced tax planning and sound legal advice allow our clients to minimize the tax cost of growing their businesses.
A client’s business organization, business transactions and business contracts together create the overall financial picture of their company. We review proposed transactions, address how they will affect a client’s tax liabilities and recommend the most beneficial structure or timing of a proposed business transaction.
Real Estate Tax Planning
We work closely with our client’s real estate counsel to provide comprehensive real estate tax planning services.
We advise our clients regarding the proper choice of real estate business entity, a choice that is crucial in obtaining favorable tax treatment. We assist in designing the business entity to meet the client’s business needs, using special allocation and other techniques to accomplish goals.
We help clients identify and realize tax saving opportunities related to the acquisition, development, operation and disposition of real estate. For example, formal cost-segregation studies acceptable under IRS standards may permit a taxpayer to depreciate property components that are not part of a building structure over shorter time periods.
Real Estate Tax Planning in a Declining Market
In a difficult real estate market with declining property values and rents, debt financing, refinancing and debt cancellation become significant issues. We work with our client’s accouting and financial advisors, banks and other funding sources to coordinate the business aspects and resulting tax consequences of property financing transactons.
The Benefit from IRC Section 1031
Clients can benefit from IRC Section 1031 which allows for the tax-free exchange of property that is sold and replaced with new property. We guide clients and their real estate professionals through the statutory and regulatory requirements that grant tax-free treatment.
Real property taxes are a major concern of New Jersey real property owners. We compliment our real estate tax planning practice by offering representation before municipal and county taxing authorities with respect to real property taxes issues, including valuation, special use and available exemptions.
Nonprofit and Tax-Exempt Organizations
Kulzer & DiPadova counsels many clients to guide them through the nonprofit and tax exempt web of corporate governance and tax regulations. Because of the significant tax benefits that can be afforded to a nonprofit or tax exempt entity, the Internal Revenue Code and the regulations, rulings and cases which support and interpret them, create a complex web which may require legal assistance for the entity.
Proper Registration of Nonprofit and Tax-Exempt Organizations
From the organization of a “public” charity, a private foundation or a social or political organization, our attorneys can assist with the proper registration of the entity with the Internal Revenue Service and with State regulatory authorities. These entities are regulated in part by State law and in part by tax law. We can assist with providing guidance about the fundamental compliance matters to meet the important mission of the organization while likewise meeting its tax and reporting obligations.
Many clients seek to implement a tax exempt entity as part of their estate plan. The entities to be used can include the private foundation or charitable remainder trust or charitable lead trust. However, our experience in assisting public charities, as well as other types of tax exempt entities, provides us with the expertise to assist our clientele in meeting their charitable and philanthropic goals.