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Archives for CPA Industry

Real Estate Divestment Tax Strategy: Charitable Remainder Unitrusts

For many individuals and investors, real estate represents the largest portion of their net worth. Real estate has been a popular investment tool both for income and long-term appreciation. Individuals or businesses intending to divest real estate have several options.

These include outright sale or donation, bequest, bargain sale, charitable gift annuity, charitable remainder trust and retained life interest. Some of the alternatives provide an income stream and may result in charitable tax deductions and the avoidance of capital gains tax.

WHAT IS A Charitable Remainder Unitrusts?

Charitable remainder unitrusts can be an effective tool for converting real estate into higher income producing assets. Charitable remainder unitrusts may accept real estate as an asset, and then pay the net income generated by the property to the trust beneficiaries or sell the property and then pay a fixed percentage of the value of the assets.

A charitable remainder trust is an irrevocable trust that provides for and maintains two sets of beneficiaries. First is the income beneficiary. The income beneficiary receives a set percentage of income from the trust for life or a term of up to 20 years. The second is the charitable beneficiary. This could be one or more charitable organizations that receive the principal of the trust after the income beneficiaries pass away.

A CRUT can sell a property, reinvest the proceeds into a diversified portfolio of securities, and pay a percent of the trust value, all without any capital gains tax liability for the donor. This is a very useful tool to strategically minimize real estate taxes.

BENEFITS

Since the first beneficiary is the income beneficiary, the amount of income generated is of importance to the donor. The amount of income depends upon the payout percentage chosen and the amount of income generated within the trust. The remainder of the trust must be at least 10 percent of the fair market value of the assets transferred to the trust. That market value is determined at the time of transfer and based on the original amount of the appraised value.

The amount paid out to the income beneficiary can be 5 percent to 50 percent of the trust funds each year as long as the appropriate amount remains in the trust for the charitable beneficiary. A higher payout percentage will lower the charitable income tax deduction.

A charitable remainder trust is outside of the estate and additional assets can be added after it is established. The charitable deduction available depends on the type of property contributed and the type of charity named as the charitable beneficiary. Any deductions not used in the year of contribution can be carried forward five years.

Charitable Remainder Trusts aren’t something a investor can do internally, but rather require a CPA.

Here at Camuso CPA PLLC, we do have the ability to offer charitable remainder unitary trusts strategies along with other powerful tax planning tools to our clients. If you are interested into how this service might benefit your business, please don’t hesitate to give us a call today. One of our friendly and knowledgeable representatives will be happy to answers any questions you have.

Your personal and business finances are the foundation of your success. Contact Camuso CPA today to build your dedicated financial team: https://www.camusocpa.com/contact/#/

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Camuso CPA Take A Different Approach to Client Service

The CPA firm landscape is rapidly evolving; firms like Camuso CPA serve as a model for how CPA firms can successfully respond to industry change and remain relevant.

Camuso CPA focuses on delivering clients relevant and proactive insights for tax minimization, cash flow improvement, profit improvement and of course, overall compliance. As a response to the shift to CPA’s serving in an advisory role from a compliance role, Camuso CPA is part of a new generation of CPA firms focused on building business relationships not collecting clients.

Before establishing Camuso CPA, I developed a world-class background working at the top Big 4 professional service firm for well over 5 years in two of the country’s most competitive cities, NYC and Charlotte.

I worked specifically within the investment management and real estate space consulting for the world’s premier asset managers, real estate companies and retailers. Working with high-level institutional investors and going on to serve clients with Camuso CPA nationwide has given me insights into what works and what is broken in the traditional client service models for public accounting. Camuso CPA has designed our service offerings to eliminate the biggest issues that we see in the industry.

All too often we see clients make costly errors because the pricing structures and degree of client service provided by CPAs does not provide clients with the platform to get their financial questions answered promptly throughout the year.  Camuso CPA eliminates disincentives and unexpected fees for contacting your dedicated business adviser. We focus on building rapport and trust with our clients through the quality of work that we deliver and with my responsiveness to any of our clients’ concerns or questions.

Camuso CPA has capitalized on this industry change by becoming your trusted partner and an integrated financial component of your business. Camuso CPA’s business model is designed to add value by collaborating with clients on an ongoing basis – not just during tax season.

Our team ensures that we take a holistic and entrepreneurial approach to your business, investments and finances by incorporating the latest strategies, tools and technologies into our services offerings to deliver the greatest financial benefit to all clients.

Because of emerging technologies within the industry, the landscape of public accounting is changing drastically. There are now tax services available to businesses that were previously only affordable for major corporations. For instance, cost segregation services typically only used to be recommended for businesses with a tax basis over $1,000,000, but can now be had for businesses with a tax basis as low as $100,000.

Your personal and business finances are the foundation of your success. Contact Camuso CPA today to build your dedicated financial team:

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Benefits of CPA Business Advisor

Regardless of whether you are flipping properties, developing a major project, or building a rental portfolio, maintaining a trusted CPA as your business advisor is essential to the success of any business. Investors and business owners of all types should look for an advisor that serves as a partner; an ideal CPA is a financial expert with companies within your industry that can provide ongoing financial and business advice when you need it most.

Exceptional CPAs offer business and financial knowledge. As your business grows, a CPA is instrumental in the process of streamlining your business, your CPA is integral in your business advisement because they know your business and they should have other clients within the same industry which enables them to provide knowledge on best industry practices.

Investors and real estate business owners should demand the highest level of industry expertise and services to fit their business needs. Technology makes it increasingly easier to collaborate with CPAs regardless of their physical location and proximity. It is the best practice to seek a CPA who has a company where the majority of their client base is made up of real estate investors, developers, and agents. Seeking an industry expert ensures that the professional is up to date on the IRS regulations and has a solid professional network within your specific industry. A professional’s competency on the issues surrounding real estate is extremely important.

Many contemporary CPAs who are experts in their industry that function in a business advisory role offer monthly engagements to their clients. This is the most beneficial routes for business owners to pursue when seeking a CPA because it offers them uninterrupted access to a financial expert that can provide ongoing advice precisely when your company needs it.

Your CPA should also act as a relationship manager and expander; a one stop shop for the services their clients need without having to take on the expense of retaining additional in-house talent by offering a strong professional network that can engage their client’s needs that are outside their capabilities.

Before entering an engagement with your CPA do a basic search on their background and work history. There are opportunities to work with individuals that are the best in the business with the credibility of working at the world’s greatest companies who have pursued their own route to serve small business owners and investors in your industry. It is beneficial to seek CPAs with a team that has experience working with the best in the business at one of the Big 4 accounting firms and/or the most reputable companies within your industry.

An excellent CPA will have an entrepreneurial approach to their own business and experiment with various parts such as their service offering, pricing, or forms of communication. This could be as simple as introducing a new product or as complex as overhauling a pricing model. An innovative CPA that is innovating their own industry and business is more likely to have insights and benefits to offer you as a business owner and investor. A true, motivated business advisor is one that you need on your team.

It gives you not only piece of mind but business confidence to know that a financial expert that is experienced within your industry has your business interest in mind and is constantly available to strategically help your business or investments grow. Whether it’s trying to navigate through complex business planning or handling IRS inquiries, when you’ve hired trusted CPA the process becomes much easier and you can focus on improving your business. When you want all of these benefits of a CPA business advisor in Charlotte, give the professionals at Camuso, CPA a call.

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