At Censullo, Gupta & Associates, our greatest pleasure in our business is having the opportunity to help our clients evaluate their situations in detail. Here are just a few stories about the ways in which we've helped our clients. (We have changed the names and specifics of the clients to protect their identities.)
Qualified Opportunity Zone (QOZ) Implementation
Eliminated 15% of Capital Gain, Delayed Capital Gains Payment for 7 Years, and Obtained Tax-Free Appreciation for New Investment.
Daniel just sold his business and had a large capital gain. When meeting to discuss the tax impact of the sale, he was scratching his head about the large amount of tax he had to pay. After brainstorming about all the recent changes in the tax law, we determined that this could be a good time to think about the new tax deferral and savings strategy offered with an investment in a Qualified Opportunity Zone (QOZ) fund. Daniel was happy to hear that there was a way to defer his capital gain for seven years and get a free 15% step up in basis in addition to tax-free appreciation his new investment would make.
Maximized Cash Flow and Tax Savings in Real Estate Business
Saved Several Millions in Current Taxes
Meredith’s family owns millions of dollars of rental real estate generating several million in annual income with large tax liabilities. They were concerned about their cash flow because of maintenance of the building. We suggested a cost segregation and repair regulations study which we then helped them implement, improving her family’s cash flow and saving > $1.5M in current taxes. Her family was extremely happy with the results.
Understanding the Details Brings Big Rewards
Amended Tax Returns Brings >300,000 in Refunds
While meeting with our new client, business owner John, we were discussing how his business was doing. He mentioned that he was getting ready for his retirement years and working less. We couldn’t understand why his tax situation was not reflecting this change and decided to look a little bit closer. In looking at the details, we determined that the previous bookkeeping records had included investment income from other ventures in his business income, inflating the total. We were able to amend the last three years of returns to get refunds of several hundred thousand in taxes.
Required Minimum Distributions on Inherited IRAs
Several Thousands in Penalties Eliminated
Susan came to the office wondering what to do when she found out that her father who passed away several years ago had an IRA account that no one knew about. She and her two siblings were beneficiaries, but no required distributions had been taken as required by law. They were concerned about what to do and how they could get back on track. They were not aware that the penalty for the missed distributions was 50%. We were able to split the account, have them take the missed distributions and prevent them from paying the 50% penalty for each missed distribution. Susan and her siblings were delighted that they didn’t need to pay any penalty to the IRS.
Better Life-Insurance Solution
Better Benefits with Elimination of Premium
Jennifer is a retired executive from a large corporation. As part of her retirement benefits, her former employer paid her life insurance premiums for several years. Once that benefit stopped, she wanted to continue the policy but not pay additional premiums. The existing insurer wanted to charge annual premiums of about $10,000 to continue the coverage. We were able to have our insurance expert evaluate the policy and obtain the same coverage with better benefits for no additional premium. Jennifer was thrilled.
Analysis + Closer Look = Peace of Mind
Prevented Wasted Premiums
Ben is in his late 60s, in good health, and had a $2 million insurance policy that he received as an executive benefit from his previous company. Now that he was paying the premiums himself, he wondered why the premiums kept going up. We suggested evaluating the policy and found out that at age 90, the premiums would increase to over $400,000 per year. Our evaluation helped Ben determine that it did not make sense to continue paying premiums for this policy.