Tax Planning and Succession Planning with Douglas L. Hoffman, CPA, PFS

Douglas L. Hoffman, CPA, PFS accounting firm https://hegcpas.com/. Reach Doug at 518-523-2581 x304

Watch the video episode https://youtu.be/ycUl7ykFZGg

Douglas L. Hoffman, CPA, PFS, has 40-plus years of experience in finance with PwC, one of the world's largest accounting firms, and owns four accounting firms in NY state. Doug has been with the firm since January 2007, when his firm, Hoffman CPAs, merged with Dragon Benware & Company, becoming the largest firm in the North Country. He earned a Master of Business Administration from the University of Connecticut and a Bachelor of Science in Accounting from SUNY Plattsburgh. In addition to being a Certified Public Accountant, Doug received the designation of Personal Financial Specialist (PFS) from the American Institute of Certified Public Accountants. Doug works with a wide variety of clients, from small family-owned businesses to high net-worth individuals, with their estate, tax, business, and personal planning, and has done so for more than 35 years. Before starting his CPA firm, he worked for Price Waterhouse & Co. and was the Lake Placid 1980 Olympic Winter Games controller. He also has experience operating thirteen businesses between his wife, three children, and his entities within their family enterprises. Doug is a consultant and principal at American Business Transitions, Inc., an organization dedicated to helping family business owners. He is also a partner in Adirondack Asset Management, LLC, a personal financial planning and investment management firm.

Douglas L. Hoffman, CPA, PFS accounting firm https://hegcpas.com/.

Doug and I discuss the following in this episode:

Entity types – sole proprietor, partnership, corporation, LLC
Sub-S corporation vs. C corporation.
Sole proprietor.
Partnerships income allocation, the basis for loss deduction.
C Corporation 21% tax bracket, no appreciating assets like real estate.
Sub-S corporation advantage for active owners. The basis for loss deduction.
Qualified business income deduction – (QBID)
Section 179 and bonus depreciation.
Vehicle deductions – standard vs. luxury, SUV, and GVWR (loaded) greater than 6,000 pounds. Lease/buy.
Retirement plans- Regular and Roth IRA, Simple IRA, 401k, Profit Sharing, Keogh, Regular and Defined Benefit Pension Plans.
Succession Planning -Employee Stock Ownership Plans -ESOP
Tax credits – Employee Retention Credits
M&A – stock vs. asset sale.
Allocation of the sale price – buyer vs. seller
Net investment income tax – 3.8% on C-corporation stock sales.
Family LLCs for estate planning vs. trust. Gifting – 2026 limits vs. now. Minority, marketability discounts.

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