Income Tax Planning Services for Individuals and Businesses
We help clients optimize basis, losses, and timing strategies to improve cash flow while staying compliant. Our lawyers at The Wilson Firm model scenarios across capital treatment, NIIT, §199A, and NOLs to guide smart decisions before a deal closes. We ensure contracts reflect tax implications clearly and that indemnities and reps provisions match the agreed split of pre and post-closing liabilities.
What is Income Tax Planning?
Income tax planning helps businesses and individuals manage taxable income, reduce liabilities, and improve cash flow—while staying compliant with federal and state rules. It’s especially critical during transactions, reorganizations, and succession events.
Key Planning Areas:
- Basis management: Adjusting asset basis to optimize gain/loss recognition
- Loss utilization: Applying net operating losses (NOLs) and carryforwards strategically
- Timing strategies: Accelerating or deferring income and deductions for optimal tax years
- Entity structure: Choosing between partnerships, corporations, and disregarded entities
- Capital vs. ordinary treatment: Modeling how gains, dividends, and compensation are taxed
- Section 199A and NIIT: Evaluating qualified business income deductions and investment tax exposure
- ransaction modeling: Testing tax outcomes before executing mergers, acquisitions, or exits
Effective income tax planning aligns financial goals with tax efficiency, helping clients preserve value and avoid surprises.
Why Income Tax Planning Matters
Income tax planning helps businesses and individuals preserve value, reduce liabilities, and stay compliant during growth, restructuring, or exit events. It’s a proactive tool that supports financial health and strategic decision-making.
Benefits of Income Tax Planning:
- Improves cash flow by managing timing of income and deductions.
- Reduces audit risk through accurate reporting and documentation.
- Optimizes gain and loss treatment for transactions and investments.
- Supports succession and exit strategies with minimized tax exposure.
- Aligns entity structure with operational and tax efficiency.
- Ensures compliance with federal and state-level filing requirements.
Strategic tax planning turns complex rules into actionable advantages, protecting your bottom line and positioning your business for long-term success.
How The Wilson Firm Helps with Income Tax Planning
Our firm provides income tax planning for both businesses and individuals navigating transactions, reorganizations, or succession events. Our attorneys model timing, basis, and loss strategies to reduce liabilities and improve cash flow across entity and personal tax profiles. We evaluate capital treatment, federal limitations, and structural options to guide smart decisions. Every plan is built for compliance and long-term financial strength.
Case Example
In 2014, Houston-based Kinder Morgan, led by Richard Kinder, successfully consolidated its master limited partnerships into a single corporation in a $70 billion transaction, optimizing income tax planning by shifting from pass-through taxation to corporate structure. This allowed for better utilization of depreciation deductions and cost allocation, reducing overall federal tax liability while enabling higher dividend payouts to shareholders. The move increased the company's dividend by 16% and positioned it for long-term growth in the energy sector. This case exemplifies how strategic corporate reorganization can minimize income tax burdens for large Texas businesses. Kinder Morgan's approach leveraged Texas's no state income tax to enhance after-tax returns for investors.
Why Choose The Wilson Firm?
At The Wilson Firm, we provide personalized, strategic representation tailored to each client’s needs. Whether you’re facing a tax dispute, or seeking proactive tax planning, transactional guidance, or estate planning, our attorneys work closely with you to understand the facts, assess the risks, and pursue the most favorable resolution possible.
We manage the legal complexities so you can focus on moving forward. From communications with tax authorities and building strong legal strategies, to structuring business transactions and planning for your family’s future, we are committed to protecting your rights, your interests, and your peace of mind at every stage.
Our experience spans both defensive and proactive planning ensuring that you are prepared and positioned for long-term success.
Contact us today to learn how our experience, discretion, and dedication can help you navigate even the most challenging legal matters with clarity and confidence.
Coordinated, Long-Term Planning
Effective tax planning doesn’t happen in a vacuum. We coordinate closely with CPAs, wealth managers, and fiduciaries to build strategies that consider the full scope of our clients’ financial realities.
Whether planning for retirement, passing on a business, or preparing for a major transaction, we help clients move forward with clarity, and without surprises.
Smart tax planning can help protect what you’ve built, and position you for what comes next. Contact us today to schedule a confidential consultation.
Frequently Asked Questions
NIIT applies to certain investment and passive income above threshold levels. Managing participation status, gain timing, and deductible expenses can reduce exposure.
Capital gains often face lower rates, while ordinary income can be higher but may allow offset with ordinary losses. Deal structure, asset classifications, and allocations drive which buckets apply.
Common strategies include cost segregation and bonus/§179 expensing, inventory and capitalization method changes, and revenue recognition adjustments. Method changes often require filings and should be sequenced with transaction plans.
Quarterly estimates based on current income or safe-harbor rules reduce underpayment penalties. Aligning estimates with seasonal cash flows, large transactions, and loss utilization keeps payments predictable and compliant.
NOLs can offset taxable income in future years, subject to percentage limits and carrying rules. Planning focuses on creating, preserving, and sequencing NOLs so they deliver the greatest benefit when income rebounds
