TRKM SAVES CLIENT $40,000 IN ALTERNATIVE MINIMUM TAX PAYMENTS
A new real estate client recently came into the offices of TRKM. They had moved their business from Texas to Colorado and decided they would benefit from being served by a Denver accounting firm. The real estate firm’s tax return had been completed but not submitted by the firm’s previous out-of-state accountant.
As part of TRKM’s services to new clients, TRKM principal Mary Ruparel went over the firm’s tax return before it was to be submitted to the federal government. The previous accountant had calculated that the firm was going to have to pay $40,000 in Alternative Minimum Taxes (AMT). Mary discovered that the client was not subject to the AMT fees, because its receipts were under the minimum dollar amount that is subject to the AMT. Mary reported that to the client, who went back to his previous accountant and had the accounting firm correct its mistake.
By conducting thorough business reviews with all of our new clients, TRKM is able to assist our clients to develop best practices, and help them to avoid paying excess taxes. TRKM’s new client is very happy today about not having to pay for a $40,000 accounting error, based on erroneous advice.
BUSINESS VALUATION BY TRKM HELPED OUR CLIENT AVOID A BAD INVESTMENT
Recently, we assisted a client in determining whether buying a business would be a good investment. We examined the tax returns, financial statements and completed a business valuation. It was determined that the value of the company was much less than the asking price. Our client did not purchase the business. We consider this a success because if the client had purchased the business, there would have been definite cash flow problems and potentially disastrous effects on the client’s financial wealth.