Federal Tax Pass-Through Income Business Planning
Tax management for unique pass-through business structures
Are you prepared and equipped to manage the unique tax challenges as you make transactional, structuring and compliance decisions as a pass-through entity? Business owners who set up an S-Corp, LLC or even sole-proprietorship (which is unincorporated), receive payments for their labor through these “pass-through entities.” Thomas Huckabee, CPA offers tax consulting and tax compliance services for complex partnerships, LLCs and S corporations. Pass-throughs account for 95% of all businesses, more than 60% of all business income, and more than 50% of all employment. Pass-through entities have become the subject of increasing scrutiny from the IRS. On the federal level, pass-through businesses are subject to a top marginal tax rate of 44.6%. This means that, in most U.S. states, pass-through businesses can face marginal tax rates that exceed 47%.
In light of these facts, the GOP’s passing of the Tax Cuts and Job Act, included Pass-through business income legislation known as the Section 199A, the 20 percent qualified business income deduction. The IRS just issued final guidance in Publication 535 for this.
In the modern merger and acquisition environment, pass-through entities are frequently the subject of a sophisticated M&A or restructuring transaction. Our pass-through entity specialists are well versed in the opportunities and pitfalls in these transactions. Law firms and complex wealthy investor pass-through entities rely on our tax specialists to minimize shareholder and entity-level tax liabilities, and assist with managing tax compliance issues.
Simplifying Pass-Through Entity Tax Planning
Thomas Huckabee, CPA pass-throughs practice can help. We have 20 years of industry experience to support the needs of partnership and pass-through entities. Tax reporting for pass-through entities often requires a significant amount of time and effort to prepare and deliver the IRS its required Schedule K-’s. We can help to:
- Streamline preparation and filing
- Simplify data collection and review
- Improve accuracy and quality control
People that Make a Difference
Thomas Huckabee, CPA has extensive experience helping numerous partnership structures realize certain tax efficiencies and maintain compliance by adding clarity to:
- Modeling
- Transactions
- Entity formation structuring
- Tax planning
- Legislative and regulatory developments
Technology that increases efficiency
Thomas Huckabee, CPA helps pass-through entities manage pass-through taxes while increasing efficiency and transparency. We can help streamline pass-through tax planning compliance and reporting by helping your company:
- Automate tax management processes
- Organize, analyze and maintain large volumes of data
- Ultimately avoid errors and backlogs
Industry Focus that Digs Deeper
Drawing on our distinct breadth and depth of industry-specific tax and regulatory knowledge, and our experience in federal, state, local and cross-border tax trends, we can address industry-specific issues and specialty areas that include:
- Energy and credits
- Real estate & REITs
Contact us today to learn how we can help your pass-through entity streamline its transactions, operate efficiently, and transition seamlessly in a tax-efficient manner.
