Management Companies, Are They Worth the Risk?

Overview

We define what a management company is, ways to identify if a client should consider their use and how to properly structure. Plus examine guidance received from Tax Court cases, their common factors and the double-loss of deduction risk.  

Prerequisites

None

Objectives

• Analyze the purpose, structure, and tax implications of management companies, incorporating Tax Court guidance and key accounting principles to assess their appropriate use

 

Highlights

• What is a management company?
• When and why is a management company needed?
• Payroll processing options
• IRC §280E impact
• Principles of primary importance
• Principle vs. agency accounting
• By-product issues