Written by: Patrick Price
A great corporate tax consultant is defined by many different characteristics and attributes. But having a forward-thinking mindset and approach to corporate taxes is seemingly the common denominator. Throughout the corporate tax industry, it is considered best practice for consultants to formulate this type of mindset to reach successful conclusions on behalf of their clients. But why is this a best practice?
Tax consultants that have adopted this progressive approach take into consideration that ”what was”, is not always “what is.”
For example, when reviewing leased offices, a forward-thinking consultant doesn’t analyze the lease abstract or contract-rent based on the initial rates. The initial rates reflect market conditions that no longer exist. Instead, using a forward-thinking mindset, the corporate tax consultant should be conducting their analysis based on current market rates and conditions.
While thinking ahead, the tax consultant will construct a narrative to include how market fundamentals have drastically changed since the time leases or agreements were negotiated and signed. They will perform their valuation analysis based on reset market rates. This includes factors such as:
- Rental Income
- Cap/Discount Rates
Throughout this process, the consultant will conclude that any hypothetical purchaser would base their decisions on forward-looking projections which have more risk (and require higher cap rates and discount rates).
Fortunately, our teams of tax experts leverage their extensive knowledge, forward-thinking mindsets, and progressive approaches to optimize corporate tax solutions for every client. Contact us to discuss your tax needs, and learn more about how we can help.