We help clients make smart decisions so they get the most of stock options and other equity compensation. We are intimately familiar with the complex tax reporting of hedge fund, and publicly traded partnership income and deductions. We look for tax opportunities involving passive income. Here are some ways we help:
A JS+A client intended to rebalance his portfolio, generating big gains. JS+A planners developed a strategy to sequester highly-appreciated assets for donation, eliminating more than a million dollars in tax. JS+A also modeled various scenarios for the rebalancing, comparing a gradual approach with a “Big Bang”, ending up with after tax results that delighted the client and impressed his financial managers.
Separately, JS+A helped a beverage entrepreneur limit tax on a major liquidity event by advising on the creation of a Private Foundation.
Real Estate Transactions
JS+A analyzed another client’s multi-family property, to see what made more sense: converting to condominiums or continuing to rent.
Stock Compensation Planning
JS+A advised a financial services executive on wise use of his share-based compensation, which includes stock options and restricted stock. Working together, we were able to avoid Alternative Minimum Tax, limit the creation of high-taxed ordinary income and maximize lower-taxed long term gain.
Hedge Fund Investments
JS+A clients include numerous sophisticated investors. One such client held positions in multiple hedge funds and master limited partnerships, each of which issues a multi-page tax statement at year-end. JS+A confidently analyzed the dozens of items reported on the tax statements, taking advantage of deductions and credits where available and identifying some transactions that must be disclosed on special forms on pain of harsh penalties.