CASE STUDY ONE
Real Estate Broker.
Business entity was structured incorrectly, and the accounting systems set up by client were not
accepted by the IRS auditor.
Minton CPAs saved this real estate broker over $50,000 per year by creating an efficient and
effective IRS acceptable accounting system. As an added result this broker had accurate and
timely financial information to make informed decisions throughout the year.
CASE STUDY TWO
Real Estate Agent/Investor.
This business was not structured properly. Wages were being calculated incorrectly based on
IRS ‘fair and reasonable’ guidelines. Business expenses were being written off improperly. In
addition, this client did not have a retirement plan.
After engaging Minton CPAs this client was able to recapture and save a total of $125,000 in tax
CASE STUDY THREE
Real Estate Investor.
When this client came to Minton CPAs there were multiple company entities operating that were
not necessary for the business. These were structured incorrectly and writing off expenses that
are not allowed. Employee payrolls were being incorrectly calculated. Tax returns were
incorrectly prepared and bad advice was provided to client. Through restructuring and good
sound advice about properly managing a real estate investment business, client realized a tax
savings $65,000 per year.
CASE STUDY FOUR
Real Estate Agent/Investor.
This client had been given bad tax advice. They were told to treat their real estate business as
a hobby, and that payroll was not required. Tax returns were prepared with significant errors:
preparer did not allocate inventory to cost of goods sold properly, therefore creating an extreme
over/under in tax liability and refunds. In addition, client was not in compliance with the IRS
wages base for officers. They wanted to fund a retirement plan and could not adequately do so
without the proper wages base.
All of these errors caused high risk audit alerts and tax liability volatility equal to $60,000 a year.
The Minton CPAs team has corrected these issues and put the client on a safe track.
CASE STUDY FIVE
Real Estate Agent.
Agent had been misguided on auto deductions, taking maximum write off in current year and
minimizing write offs in future years and recapture of depreciation. Tax preparer was not educated in the profession of real estate and all of the exceptions and allowable write offs that
are unique to this profession.
Failure to recognize these unique rules, particularly as they affect investing strategies can result
in tax liabilities increasing instead of reducing as provided in the tax code. This can cost
anywhere from $20,000 to hundreds of thousands of dollars depending upon the uniqueness of
their strategies, goals, and income levels.
Minton CPAs are experts in helping real estate agents and investors minimize their tax liability
by utilizing every allowable provision of the tax code.
Have Questions About the New Tax Laws?
Tina Minton is available to share with your business team or service organization. Her 30-minute presentation is ideal for sales meeting, lunch and learn, or other events. Please contact Brea at 757-546-2870 to schedule.