How Tax Strategy Drives Business Value

Here’s a real-world example of how tax strategy can make a huge impact on your bottom line… In 2023, my company Sunrise Capital Investors acquired a mobile home park for $44.45 million. Normally, you’d take the land value out (about $7.3M in this case), and depreciate the rest—roughly $37 million—over 27.5 years. That would have given us $1,349,163 of depreciation "losses" per year. That’s a good start, but we didn’t stop there. We brought in a cost segregation team—and what they uncovered was powerful. Cost segregation involves strategically breaking down a mobile home park’s individual components to depreciate the asset as quickly as possible. By identifying all depreciable assets within the property and assigning them their proper categories and depreciation schedules, you can further compress the timeline. Our cost segregation team found that 97% of the property (around $36M) could actually be depreciated over 15, 7, or even 5 years. Translation: significantly more depreciation, much sooner. To take this a step further, we were able to speed up the timeline with bonus depreciation. Bonus depreciation is an incentive that allows mobile home park owners to accelerate the depreciation of assets with depreciable lives of less than 20 years, enabling them to deduct a substantial portion of the property's cost in the year the investment is made. Using this same acquisition example, by combining cost segregation with bonus depreciation, we could depreciate nearly $29 million (80% of $36 million) in 2023 for this property. This is a significant increase in depreciation losses compared to the $1 million with standard depreciation alone. Utilizing this strategy meant that investors who participated in this acquisition received 135% of their invested capital as a "passive loss" on their 2023 K-1, potentially resulting in extraordinary reductions in taxes owed on passive gains for that year and future years since the losses may be carried forward. Since then, the laws around bonus depreciation have changed. In 2025, the percentage that can be deducted in the first year dropped to 40%, and it will continue to decrease in subsequent years with current legislation. However, it is possible, even likely, that new legislation will be passed in the near future to bring back these benefits. Utilizing cost segregation and bonus depreciation are two kinds of strategies we use every day to help our investors build real, lasting wealth. If you’re not leveraging tools like this in your real estate strategy, you’re leaving money on the table.

1/ It’s Sunday night, and you’re catching up on tax law (just me?). Let’s talk about two powerful tools saving business owners serious money: bonus depreciation and Section 179 expensing. If you’re making big purchases, this thread is for you 👇 2/ Picture this: A manufacturer spends $800K on equipment. Before 2017, they’d spread out deductions over years. After the Tax Cuts and Jobs Act (TCJA)? They wrote off all $800K in year one. That’s a massive cash flow boost. 3/ Another client—a landscaper—invested $1.2M in trucks and tools. Section 179 allowed them to deduct $1M upfront. The tax savings freed up cash to hire five new employees. Tax strategy isn’t just about numbers—it’s about driving growth. 4/ Here’s how it works: Bonus Depreciation lets you deduct up to 100% of eligible property costs in year one (phasing out after 2023). Section 179 Expensing allows up to $1M in immediate deductions, with a phase-out starting at $2.5M. 5/ Bonus depreciation used to apply only to new property. The TCJA changed that. Now, used property qualifies too. Machinery, vehicles, office furniture—if it’s tangible and used for business, it might be eligible. 6/ Example: A retail business spent $600K on storefront improvements—new HVAC, security systems, and a roof. Under Section 179, they deducted the entire amount in year one. Before the TCJA, they’d be waiting decades for that tax break. 7/ Timing matters. 100% bonus depreciation is already phasing out: • 2023: 80% • 2024: 60% • 2025: 40% It’s gone by 2027 unless Congress extends it. Planning a big investment? The time to act is now. 8/ Bonus depreciation is automatic unless you opt out. Section 179 requires an election. Bonus can push you into a net operating loss. Section 179 can’t. Both are powerful tools, but the best choice depends on your goals. 9/ In M&A, this can be a game-changer. Buyers want to allocate purchase prices to tangible assets eligible for bonus depreciation. Sellers, however, often prefer allocations to goodwill to avoid immediate tax hits. 10/ One deal we worked on allocated $1.5M to machinery, giving the buyer an immediate deduction. The seller? They negotiated a premium to offset their higher tax bill. Smart structuring creates win-wins. 11/ Tax law isn’t just compliance—it’s strategy. Bonus depreciation and Section 179 can supercharge your cash flow. But they’re complex. The wrong move can leave money on the table—or worse, cost you. 12/ If you’re buying equipment, making improvements, or closing deals, these tools can save you big. Consult your advisor to see how they apply to you—or DM me if you want to talk strategy. 13/ Disclaimer: This thread is for informational purposes only. It’s not tax, legal, or financial advice. Always consult your advisors to determine what works best for your situation. I’m not your attorney. Blah blah blah… / end

Tax season may be over. Strategy season? Just beginning. For CEOs and boards, this is your window to turn hindsight into foresight before Q3 planning takes over. You should be asking: “Are we using our tax position to shape the next phase of growth?” By now, most calendar-year filers have submitted returns or secured their extensions, making this the ideal window for forward-looking tax planning. From my years in tax law and finance, I’ve seen that the most competitive, future-ready companies treat tax planning as a strategic asset, not just a compliance exercise. If you're not already doing this, here are five priorities high-performing leadership teams are tackling now: 1. Capital gains and losses Are you optimizing after-tax returns through thoughtful loss harvesting? 2. Charitable giving Is your philanthropy aligned with both impact and efficiency? Donor-advised funds and appreciated stock can be powerful. 3. Clean energy incentives The Inflation Reduction Act unlocked major credits. Are you embedding them into your sustainability roadmap? 4. Executive compensation Timing and structure are key to RSUs, stock options, and deferred comp. Is your comp strategy working for both the business and its leaders? 5. Cross-border tax dynamics With global reforms accelerating, is your structure future-proof and compliance-secure? In the next 30–60 days: • Schedule a mid-year check-in with your tax advisors • Reassess your entity structure, incentive strategy, and estate plan • Stress-test how your tax positioning aligns with your 2026+ growth roadmap Tax strategy isn’t just about dollars, it’s about direction. In the hands of intentional leadership, it becomes a blueprint for resilience, reinvestment, and results. What’s one area of your tax strategy that’s taking center stage in your boardroom this quarter? #ThursdayLeadership #ExecutiveStrategy #TaxPlanning #CorporateGrowth #BoardroomReady #WomenInFinance #SmartCapital #IntentionalLeadership #WealthEmpowerment

📊 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗧𝗮𝘅 𝗣𝗹𝗮𝗻𝗻𝗶𝗻𝗴 𝗨𝗻𝗱𝗲𝗿 𝘁𝗵𝗲 𝗢𝗕𝗕𝗕 𝗔𝗰𝘁 – 𝗔𝗿𝗲 𝗬𝗼𝘂 𝗥𝗲𝗮𝗱𝘆? 📝 With the 𝐎𝐧𝐞 𝐁𝐢𝐠 𝐁𝐞𝐚𝐮𝐭𝐢𝐟𝐮𝐥 𝐁𝐢𝐥𝐥 (𝐎𝐁𝐁𝐁) officially passed, the clock is ticking on some of the most valuable planning opportunities we’ve seen in years. ✅ Here are 𝟓 𝐡𝐢𝐠𝐡-𝐢𝐦𝐩𝐚𝐜𝐭 𝐦𝐨𝐯𝐞𝐬 business owners and CFOs should be evaluating 𝐫𝐢𝐠𝐡𝐭 𝐧𝐨𝐰: 1️⃣ 𝐌𝐚𝐱𝐢𝐦𝐢𝐳𝐞 𝐒𝐀𝐋𝐓/𝐏𝐓𝐄𝐓 𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐁𝐞𝐟𝐨𝐫𝐞 𝟐𝟎𝟑𝟎 👉 Take full advantage of the temporary $40K SALT cap by electing 𝐏𝐓𝐄𝐓 (𝐏𝐚𝐬𝐬-𝐓𝐡𝐫𝐨𝐮𝐠𝐡 𝐄𝐧𝐭𝐢𝐭𝐲 𝐓𝐚𝐱) in qualifying states. This is a golden window for tax efficiency. 2️⃣ 𝐂𝐚𝐩𝐢𝐭𝐚𝐥𝐢𝐳𝐞 𝐨𝐧 𝐁𝐨𝐧𝐮𝐬 𝐃𝐞𝐩𝐫𝐞𝐜𝐢𝐚𝐭𝐢𝐨𝐧 & 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟏𝟕𝟗 👉 Accelerate asset purchases and improvements to benefit from 𝟏𝟎𝟎% 𝐛𝐨𝐧𝐮𝐬 𝐝𝐞𝐩𝐫𝐞𝐜𝐢𝐚𝐭𝐢𝐨𝐧 and a raised $𝟐.𝟓𝐌 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟏𝟕𝟗 𝐜𝐚𝐩. Review 5-year capital investment plans now. 3️⃣ 𝐃𝐨𝐦𝐞𝐬𝐭𝐢𝐜 𝐑&𝐃 𝐑𝐞𝐚𝐥𝐢𝐠𝐧𝐦𝐞𝐧𝐭 👉 R&D expenses are once again 𝐟𝐮𝐥𝐥𝐲 𝐝𝐞𝐝𝐮𝐜𝐭𝐢𝐛𝐥𝐞 (𝐢𝐟 𝐝𝐨𝐦𝐞𝐬𝐭𝐢𝐜). Shift or prioritize spending within the U.S. to maximize the benefit. 4️⃣ 𝐀𝐝𝐣𝐮𝐬𝐭 𝐖𝐨𝐫𝐤𝐟𝐨𝐫𝐜𝐞 𝐂𝐨𝐦𝐩𝐞𝐧𝐬𝐚𝐭𝐢𝐨𝐧 𝐌𝐨𝐝𝐞𝐥𝐬 👉 With 𝐭𝐢𝐩𝐬 (𝐮𝐩 𝐭𝐨 $𝟐𝟓𝐊) and 𝐨𝐯𝐞𝐫𝐭𝐢𝐦𝐞 (𝐮𝐩 𝐭𝐨 $𝟏𝟐.𝟓𝐊) now tax-free, there’s room for hybrid pay structures—especially in 𝐫𝐞𝐭𝐚𝐢𝐥, 𝐡𝐨𝐬𝐩𝐢𝐭𝐚𝐥𝐢𝐭𝐲, 𝐥𝐨𝐠𝐢𝐬𝐭𝐢𝐜𝐬, and more. 5️⃣ 𝐑𝐞𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞 𝐕𝐞𝐡𝐢𝐜𝐥𝐞 𝐅𝐥𝐞𝐞𝐭𝐬 & 𝐋𝐨𝐚𝐧𝐬 👉 Interest on 𝐔.𝐒.-𝐦𝐚𝐝𝐞 𝐯𝐞𝐡𝐢𝐜𝐥𝐞 𝐥𝐨𝐚𝐧𝐬 is now deductible. Explore smart structuring of your fleet financing for added tax leverage. 📌 𝐀𝐝𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥 𝐏𝐥𝐚𝐧𝐧𝐢𝐧𝐠 𝐏𝐫𝐢𝐨𝐫𝐢𝐭𝐢𝐞𝐬: 🔸 Move fast on bonus depreciation 🔸 Optimize comp structures for tax savings 🔸 Time big investments wisely 🔸 Start prepping for 2030 when the SALT cap reverts to $10K 💡 Now is the time to review 𝐞𝐧𝐭𝐢𝐭𝐲 𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞𝐬, 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲, 𝐚𝐧𝐝 𝐞𝐯𝐞𝐧 𝐞𝐱𝐩𝐥𝐨𝐫𝐞 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐲 𝐙𝐨𝐧𝐞 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬 as part of a forward-looking tax playbook. 📬 Want to discuss how these changes affect your 2025+ road map? Let's connect. #OBBB #TaxPlanning #CPAInsights #BonusDepreciation #PTET #SALT #StrategicFinance #Section179 #R&D #OpportunityZones #TaxUpdate #BusinessGrowth #CFOInsights #StartupStrategy

Real tax strategy needs to happen EVERY DAY, not once a year. And year-round tax planning is the best tool for shaping your company's future. How? • Monthly Money Moves: Don't just track income and expenses. Monitor the decisions that impact your taxes. Planning to buy new equipment? The timing of that purchase can have a significant impact on your tax situation. Same goes for hiring, ramping up ad spend, or any other strategic expenditure. • Quarterly Strategy Sessions: Work with a CFO or accounting firm who can help project your tax liability based on actual performance. This is key if you need to adjust your strategy before it's too late to make changes that matter. • Proactive Planning Pays: Regular monitoring and adjustment of your tax strategy helps you make informed decisions about business structure, investment timing, and expense allocation. You want to maximize deductions, minimize liability, and create a tax-efficient business model that supports your growth. I say it all the time: tax planning isn't just about paying less in taxes. It's about making informed decisions that make sense for your situation.

Running a 2024 business with 1995 tax strategy? That's an expensive mistake. Here's what you're missing: 1/ Equipment Write-off Truth Your tech purchases aren't just expenses. They're tax leverage you're missing. Smart businesses are: - Timing purchases for quarterly advantage - Maximizing Section 179 opportunities - Strategically scheduling big investments - Planning write-offs year-round But you're panic-buying in December. Big mistake. 2/ Remote Team Advantage State taxes range from 0-13.3% But you're not thinking about: - Strategic state selection - Tax-advantaged hiring zones - State-by-state optimization - Location tax benefits Your remote team could be a massive tax advantage. Instead, it's probably a liability. 3/ Software Development Gold Mine Your business runs on custom development. That's not just an expense. It's an R&D credit opportunity. Each project could qualify for: - Development credits - Special write-offs - Innovation incentives - Tax-advantaged treatment Most businesses miss this completely. That's real money left on the table. The reality: You can't run a digital business with industrial-age tax moves. I use Intuit TurboTax Business to stay current. (#ad - but every strategy here is real) → Save this → Study it → Stop overpaying #TurboTaxPartner https://lnkd.in/eJ2hjW-N

Not all tax planning is about deductions, But what if it could also build wealth, teach values, and support your legacy? Here’s a powerful, move you’re probably not using, Hire your children into your business. → Shift income into a lower tax bracket: Your kids can earn up to $15,000 in 2025, tax-free under the standard deduction, Income that would otherwise be taxed at your highest rate. → Deduct their wages as a business expense: Reduce your taxable income, while keeping money inside your family ecosystem. → Avoid payroll taxes: If you're a sole proprietorship or family partnership, wages paid to children under 18 are exempt from Social Security and Medicare taxes. → Fund a Roth IRA: Set your child up for tax-free compounding growth from the start, while teaching financial literacy and long-term thinking. This isn’t just a tax move, It’s an alignment move. Because when your wealth strategy includes your family, your values, and your vision, You're not just optimizing taxes, You’re building legacy with intention.

Want the secrets to maximize value in an M&A event? Here are a few strategies which you can implement NOW to do that in future. 1. Convert Debt into Equity If your company has outstanding loans (especially from you as the founder), convert them into equity before the sale. This can increase your Qualified Small Business Stock (QSBS) eligibility under Section 1202, which may allow you to exclude up to 100% of capital gains taxes on the sale. 2. Accelerate or Defer Revenue & Expenses If the deal is structured as an asset sale: — Delay collecting accounts receivable until after the sale. — Prepay expenses to reduce taxable income before the exit. If the deal is structured as a stock sale: — Keep the balance sheet strong to maximize the valuation. 3. Distribute Retained Earnings (for C-Corps & S-Corps) If your company has large retained earnings, consider paying dividends or increasing salaries before the sale. This can reduce corporate taxes and prevents a potential “double taxation” scenario. 4. Move Assets to a Separate Entity (Spin-Offs & IP Transfers) Transfer valuable assets (like IP, real estate, or trademarks) to a new holding company before the sale. This can: → Reduce taxable gains by shifting value out of the target company → Allow you to license the IP back and create post-exit income streams 5. Shift Ownership to a Tax-Advantaged Entity Move equity into a Grantor Retained Annuity Trust (GRAT) or Charitable Remainder Trust (CRT) to defer or eliminate capital gains taxes. Transfer shares to a family LLC or trust to take advantage of estate tax. 6. Structure the Deal as an Installment Sale Instead of taking a lump sum, negotiate to receive payments over multiple years. This can spread capital gains over time, potentially keeping you in a lower tax bracket. 7. Optimize Goodwill & Asset Allocation in an Asset Sale If selling assets instead of stock, allocate more value to goodwill instead of hard assets Goodwill is taxed as capital gains (lower rate) instead of ordinary income. 8. Move to a Low-Tax State Before the Sale If you live in a high-tax state like California or New York, moving to a zero-tax state (Florida, Texas, Nevada, Washington) before the sale can save you up to 13% in state taxes. The catch is you’ll need to establish residency at least 6-12 months in advance. -- ALWAYS slinging FREE valuable advice! BIG thanks to my good friend Matthew S. Poser for some of these tips.

Investment management used to be the primary measure of an advisor’s value. Today, it’s taxes. Not because portfolio management doesn’t matter, it does. But because investment performance is becoming table stakes.  Clients now expect more. The biggest gap I see today isn’t returns. It’s how much of those returns clients actually keep. And that’s driven by taxes. Advisors who recognize this are winning clients. They’re having better conversations.  They’re delivering deeper, tangible value. Taxes are no longer a compliance issue, they’re a planning issue. And advisors who lead with tax-smart strategies will lead the future of this industry. If you haven’t yet placed taxes at the center of your advisory approach, it’s time. Let’s talk.

📊 Taxation Isn’t Just a Compliance Task—It’s a Growth Lever In today’s hyper-competitive B2B ecosystem, your P&L is only as healthy as your tax strategy. Over the last six years in shared services and outsourcing, I’ve seen founders transform taxation from a “necessary evil” into a tactical advantage that fuels expansion. 🔑 Quick Wins for Founders Today -> Zero-Based Tax Budgeting: rebuild your tax projections from scratch each year—don’t just tweak last year’s numbers. -> Cross-Border Transaction Playbooks: document your preferred routing for royalties, service fees, and IP licensing to optimize withholding-tax outcomes. -> Stakeholder Alignment Forums: host monthly “Finance 360” roundtables with your product, sales, and delivery teams to anticipate margin-squeeze scenarios. SCROLL THE CAROUSEL TO LEARN MORE ❓ Over to you: Which tax-optimization tactic has delivered the biggest ROI for your startup? Share your metric—and let’s crowdsource a playbook for every founder in our network. ⬇️ #StrategicFinance #TaxPlanning #B2BFounders #SmartCompliance #IndianStartups #TaxStrategy #FinanceLeadership #SharedServices #FinancialTransformation #TaxOptimization #ScaleSmart #StartupFinance #BusinessGrowth #FounderFinance #TaxTech #CFOInsights #TaxCompliance #GrowthStrategy #StartupLeadership #FinancialStrategy