Business Strategy & Planning

Year-round Business Strategy & Planning
Many of the greatest tax savings and financial strategy opportunities occur in your day-to-day decisions. With simple adjustments, you can achieve the same outcome while substantially improving your bottom line. Most often, these strategies need to be implemented as a part of your decisions and transactions-- waiting until tax time is too late. 

Higdon & Hale is dedicated to helping our clients capture every tax savings strategy possible. We meet with clients on a monthly or quarterly basis to review activities and projections to identify tax savings opportunities before transactions occur and the opportunity is gone. We always welcome calls anytime you have a question or concern.

Strategy at Work – Saving Dollars with Simple Changes

Following are a few real-world examples of how Higdon & Hale can help you save a substantial amount of money with just a little planning.

Example 1: Company Ownership Transition

A client was transitioning company ownership. They wanted to structure the transaction in a way that served the best interests of both the buyer and seller.

Higdon & Hale Solution

 We recommended a deferred compensation plan that rewarded the selling owners for past service that was uncompensated. The plan allowed the majority of the business to be paid out over five years.

Bottom Line Impact

 The selling owners realized the value of the hard work they had put into the company. Meanwhile, the purchasers obtained a significant tax deduction, making the transaction a win-win for the buyer and seller.

Example 2: Equipment Purchase

A client purchased a significant piece of equipment that was eligible for immediate write-off under Section 179. 

Higdon & Hale Solution

We analyzed the transaction examining the current and subsequent year of the client’s tax brackets.  We determined that it was best to take only a portion of the 179 deduction in the current year and depreciate the balance.

Bottom Line Impact

The client saved approximately $10,000 more in taxes.

Example 3: Cash Distribution

A privately held business had accumulated significant cash and was going to pay out a large portion to the owners as compensation.

Higdon & Hale Solution

Rather than paying out the funds as additional compensation to the owners, we suggested paying it as a dividend. 

Bottom Line Impact

The owners saved significant amounts in income taxes, because the dividends are taxed at the favorable 15% federal capital gains rate versus a potential 35% federal rate plus applicable payroll taxes.