- The issue of whether valuators should “tax-affect” an S corporation’s earnings — that is, reduce earnings by an assumed corporate tax rate — continues to be controversial. The U.S. Tax Court rejected the practice in 1999, claiming that tax-affecting was inappropriate in valuing an S corporation. But in recent years several courts have embraced the concept, choosing a middle ground that better reflects an S corporation’s value. This article looks at a couple of recent cases, while a sidebar indicates that the Tax Court might revisit tax-affecting if the right case comes along.
- Identifying and mitigating construction project risk is not limited to the quantitative analysis of project cost data.
- Look at every opportunity to finance projects by evaluating their eligibility for tax credit financing through the New Markets Tax Credit (NMTC) and Low-Income Housing Tax Credit (LIHTC) Programs, which are designed to support investment in communities and meet the housing needs of residents.
- Baker Tilly helped foundry secure incentive loan to reduce the upfront capital investment necessary for a facility expansion by demonstrating the positive economic impact on the community.
- Baker Tilly helped the company evaluate three potential locations for construction of a new plant, and select a site that closed a funding gap with assistance from municipal and state governments as well as reduced utility rates.
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