Case Studies

Case Study 1
In anticipation of the sale of two Domino's Pizza franchisee stores, we advised our client, a C corporation for federal income tax purposes, to make the election to be taxed as an S corporation.

Result: The carefully timed election and sale of one of the stores resulted in a federal tax savings of approximately $30,000.

Case Study 2
One of our clients was interested in acquiring a franchisee store. They had structured the deal as a purchase of the stock of the company that owned the store. We advised them to structure the deal as an asset purchase, which resulted in depreciation and amortization deductions amounting to approximately $67,000 per year.

Result: The tax dollar benefit of those depreciation and amortization deductions amounted to approximately $20,000 per year.

Case Study 3
We were retained by a large franchisee to take over the accounting and tax advisory services. We examined their records to discover that this client was taking a position relative to a management/consulting contract that was inconsistent with the Internal Revenue Services position. We advised our client to adjust their position to align with a published Internal Revenue Service revenue procedure.

Result: By making this adjustment, our client will likely avoid substantial penalties and interest that may have been assessed had the Internal Revenue Service examined their records.

Case Study 4
One of our Domino's Pizza franchisees owned two companies, each of which held one Domino's Pizza store. One of these companies had substantial suspended losses. We advised our client to reallocate certain assets between the companies in order to release the suspended losses.

Result: This resulted in significant tax savings due to the current deductibility of the suspended losses.