Compliance Services

Tax return preparation and other compliance services are an essential part of the tax practice. We have concentrated our efforts on working principally with corporate and partnership businesses, as well as high net worth individuals with their retirement planning and estate planning. This allows us the opportunity to offer our business clients complete corporate and partnership tax support. In addition, it enables us to provide thorough, timely, and creative individual tax services for the principals of our corporate and partnership clients.

Transactional Services

Our professionals can provide value added services to support a taxpayer’s business operations. These include the following:

• Meal and Entertainment Studies
  
  Conducting business in a lunch or dinner environment is an important marketing tool for many businesses. Under current law, expenditures for certain meal and entertainment expenses are subject to limited deductibility. However, these expenditures are often included in a general ledger account that also includes fully deductible expenses.  
  
  Meal and entertainment studies typically involve a statistical sampling of entries in the general ledger account used to compute the amount of the disallowed meal and entertainment expense. Items properly deductible under other tax law provisions are identified, and the results are statistically extrapolated to estimate the total understatement of the allowable deduction.
  
  Our professionals work with a taxpayer to develop the approach best suited to a particular situation. They will then implement the study with the intent of not only recovering potential deductions in past and current tax years, but also establishing a methodology to minimize disallowed expenses in future tax years. This can include implementation of changes in accounting systems to avoid future misclassifications and conducting staff training to minimize such errors.

• Section 382 Analysis 
  
  The tax law provides numerous restrictions on the ability of a buyer to acquire ownership of a corporation and fully utilize its tax attributes subsequent to the transaction. These attributes can include tax loss carryovers and credits.
  
  Perhaps the most significant of these restrictions is contained in the provisions of Section 382, which are keyed to changes in corporate ownership and, if applicable, can limit the buyer’s ability to utilize the acquired corporation’s tax losses in post acquisition years. Tax law also requires corporations with current year losses (or with carry over losses) to monitor and report changes in their stock ownership.
  
  Our professionals can assist with the analysis of a proposed transaction to evaluate the potential impact of Section 382. They can also analyze a corporation’s historic ownership changes to evaluate whether a more favorable application the Section 382 rules is possible, based on available exceptions and special rules. The result can either be the avoidance of a limiting ownership change, or the minimization of the unfavorable impact of an ownership change that has occurred. Our professionals can also assist with a taxpayer’s monitoring and reporting requirements.

Inventory Accounting and Consulting

Our group of tax specialist will analyze your methods of accounting for inventory, in order to minimize carrying costs.  Our review of the inventory accounting methods, will include:

• FIFO
• LIFO 
• Sec. 263A
• Percentage of completion
• Construction inventory methods
• Obsolescence rules

Even if the above methods are already implemented, our experts will review the calculations to ensure the minimization of taxes and other carrying costs. The inventory accounting review is applicable to the following industries:

• Manufacturers
• Wholesalers
• Retailers
• Construction

Cost Segregation Services

Income tax depreciation can be accelerated on qualifying costs incurred to acquire, construct or improve property by applying an "engineering approach" in what is commonly referred to as a cost segregation study.

The acceleration of depreciation has the tax deferral effect of reducing taxable income and the associated current income tax liability. The acceleration doesn't eliminate the tax, but it does defer it to later years. Considering current federal and state tax rates, though, the after-tax present value of deferring the taxes can be as much as $200,000 for each $1,000,000 of property reclassified. Absent a study, most taxpayers miss the opportunity to claim the maximum allowable depreciation because the required information is not provided in contractor billings or, in the case of an acquisition, the buyer has no information regarding the value of the individual components acquired.

A cost segregation study can result in significant cash flow benefits, particularly for newly contracted or acquired facilities for:

• Manufacturing
• Hotels
• Apartments
• Restaurants
• Office Buildings
• Research & Development
• Hospitals
• Tenant Improvements
• Retail
• Grocery Stores
• Senior Living (nursing/assisted living)

Unique industries need the specialized tax expertise of UHY Advisors

Energy Tax Services

Our energy professionals have the expertise to consult on tax planning issues such as choice of operating entity, acquisition, and sale of properties. We can address federal and international issues as well as the state and local tax implications of your energy transactions. We have experience in all phases of the industry – from exploration and production to oilfield and drilling services.

Education and Not for Profit Services

Our non-profit professionals have experience dealing with the challenges that nonprofit groups must face to maintain their tax-exempt status.  We are equipped to assist with identifying potential excess benefit transactions, consulting for executive and officer/director compensation, as well as day-to-day operations of the entity.  We have the knowledge you need to keep your exempt status out of jeopardy and in compliance with numerous state and federal rules.

Real Estate Services

The professionals in our Real Estate Practice can assist you in effectively managing your real estate resources.  Whether you are in the real estate business or not, your office, home, or investment is often one of your most valuable assets. 

Developers and Construction.  Residential, commercial, and hospitality related development and construction all have financial and tax aspects that are unique to each type of property.

Hospitality

Hotel, resort, and golf course properties can be some of the most expensive and complex properties in real estate.  Our experience with these types of properties is a valuable resource for you.

Brokerage and Management

Real estate brokerage and management companies rely on timely information and efficient processes in order to gain their advantage.  We can help provide the financial information you need to give you an edge in the market.

We can assist with services including:

• Tax structuring and planning
• Purchase price allocation and transaction structuring
• Cost segregation studies
• Lease reviews and rent analysis
• Acquisition analysis and due diligence.
• Federal Low Income Housing Tax Credit projects

Our experience includes clients in a variety of industries.  We can assist:

• Real estate developers
• Commercial brokers
• Homebuilders and construction companies
• Hotels and hospitality clients
• Golf course developers
• Apartment and residential real estate owners

We can help you create a financial controls system or tax strategy that will increase efficiency and maximize cash flow to the owners.  Our experience in these areas can help you make cost effective and profitable decisions about your properties.

Research Tax Credit Studies

The tax law allows taxpayers who conduct qualifying research activities to claim a special tax credit. This credit may be available for taxpayers in such diverse industries as:

• Manufacturing
• Energy
• High technology

The credit can be available for both hardware and software development, and can result in significant tax savings.

Our professionals have the expertise to review your operations and maximize the amount of credit for which you are eligible.