Cover & Rossiter has always been known for providing tried-and-true tax and audit services to some of the area’s major businesses, non-profit organizations and families. But we also have a heritage of breaking new ground.
Focusing on being the best rather than the biggest, we have assembled an outstanding team of about 35 people with a wide range of skills. The trademark Cover & Rossiter style is a marriage of common sense, accessibility and commitment to service. Our proactive staff stays abreast of possible market and regulatory changes. We also look at each client through a wide lens, making recommendations that offer benefits in the long term.
How can we help you?
Business Services:
- Auditing & Assurance Services:
- Non-profit entities
- For-profit entities
- Internal Controls
- Reviews
- Compilations
- Agreed-Upon Procedures
- Delaware Captive Insurance Audit Services
- State Audits
- Tax Returns
- Accounting Services
- Investment Holding Company Services
- Litigation Support and Forensic Accounting Services
- Small Business Accounting Services
- Internal Controls
- Payroll
- Part-time or temporary accounting staff needs
- Peachtree Services
- QuickBooks® Services
- Certified QuickBooks ProAdvisors®
- Tax Planning and Preparation:
- Corporate
- Individual
- Tax Controversy Services
- IRS issues
- Payroll tax problems
- Corporate Tax Outsourcing
- International Taxation Services
- State and Local Tax Services
- Bankruptcy
Other Services:
- Trust and Estate Services
- Trust Accounting
- Estate Tax Planning
- Estate and Trust Administration
- Trustee Services
- Trust Company Services
- Financial Planning and Investment Advisory Services – FirstAdvisor Services
- Cost Segregation Studies (Tax savings on Real Estate)
- New Business Formation and Strategic Tax Planning
- Succession planning
- Business valuation
- Real Estate and Business Sales
- Personal Financial Statement Preparation
- International Services
Investment Holding Company Services
Delaware provides an exemption from state income tax for passive investment holding companies doing business in the state. In order to qualify for the exemption, the company’s primary activities within the state should be confined to the maintenance and management of intangible investments and the receipt and distribution of income from those investments. Additionally, in order to prevent other states from taxing that income, proper nexus needs to be established within Delaware.
Services we provide:
- Bookkeeping/Financial Reporting
- Attendance at annual and quarterly board meetings
- Delaware employees, officers and directors
- Administrative services (i.e., office space rental, paying bills, corporate recordkeeping, etc.)
Why choose Cover & Rossiter investment holding company services?
Cover & Rossiter has been working with Delaware Investment Holdings since the early 1980’s. We are familiar with the Delaware code and have a vast amount of experience working with clients who have been challenged by various states.
Although we provide a multitude of services for your investment holding company needs, our primary focus has always been accounting. We are one of the largest providers of accounting services to Delaware based specific purpose entities. Our knowledge of accounting applications and resources enables us to provide financial information in a variety of formats that are compatible with your own consolidation software.
We have maintained a strong working relationship with Delaware’s leading banking institutions which has enabled us to work easily and efficiently with their in-house employees and their investment based applications.
How can you benefit from choosing an outside accounting firm?
Using an outside accounting firm:
- helps establishes proper ties within the state (i.e., nexus)
- provides a separation of duties between accounting done at the parent company level and accounting done at the subsidiary level
- reduces manpower at the parent company for financial reporting of the Delaware subsidiary
Your investment holding company accountants
Cover & Rossiter strives to provide personal quality and innovative services to our clients. We strive to retain an experienced staff of professionals that will provide a high level of expertise for your investment holding company’s accounting needs.
We invite you to contact us to learn more on how you can benefit from our services.
For further information, contact Joanne Shaver at 302-656-6632 or send her an email.
Cost Segregation Services
Cover & Rossiter offers Cost Segregation Study services. Business owners and individuals may benefit from this study if they are constructing new buildings, have acquired or invested in a building after 1986, own an existing building undergoing renovation, remodeling, restoration or expansion after 1986 or have made leasehold improvements to offices or other facilities after 1986.
How the Cost Segregation Study Works
The study identifies hidden personal property which can be depreciated over 5 or 7 years and land improvements which can be depreciated over 15 years versus 39 year property. An analysis of building costs is undertaken resulting in a reclassification of costs from "structural" building costs to "nonstructural" building, land improvements, and personal property costs. Items such as landscaping, site fencing, parking lots, security equipment, carpentry, cabinetry, counters and millwork are just a few examples of nonstructural building and land improvement costs.
Example:
A pizza shop has kitchen equipment, furniture, fixtures, landscaping and other components. The direct and indirect costs can be allocated to building, site work and equipment from a review of the engineering drawings and construction invoices.
Types of Businesses that Qualify:
- Auto repair shops
- Funeral homes
- Strip plazas
- Office buildings
- Auto dealerships
- Nursing homes
- Convenience stores
- Medical offices
- Fitness and spa centers
- Apartment buildings
- Warehouses
Benefits of the Study
- Reallocates 39 year property into 5, 7 or 15 year property
- Allows investors to claim accelerated tax depreciation
- Provides a substantial deferral of income taxes
- Decreases taxable income and increases after-tax cash flows
- May be used to reduce real property taxes
Results of the Study
The study may result in 15% to 30% of building costs that can be identified as nonstructural building costs. On the average, for $100,000 of a 39 year property reclassified as a seven year property, the present value of the net cash flow associated with the acceleration of depreciation is approximately $20,000. Having the study implemented may result in almost double the amount of depreciation in the first eight years.
For further information, please contact Marie Holliday to assist you at 302-656-6632 or send her an email.
New Business Formation and Strategic Tax Planning
When you are considering starting a new business or entering into a specialized transaction we recommend that you call us and discuss your plans.
- Strategic planning extends beyond typical tax planning.
- We have the experience and insight to offer you solutions designed to minimize taxes.
- Examples are as follows:
- Stock option planning in order to minimize or prevent an alternative minimum tax burden
- Use of family limited partnerships
- Like-kind exchanges (section 1031)
- Residency considerations
- Alternative Minimum Tax (AMT) considerations
- Selling your business ownership
- Business succession planning
- Business valuation
- Maximization of interest deductions
- Minimization of state taxes through residency
- Residences, vacation homes and investment real estate
- Sole proprietorships
- Executive compensation
- Children and kiddie returns
- Education
- Divorce situations
- Charitable giving
- Retirement plans
- Elder care
- Estate and gift tax
Examples:
- We advised a client who was selling his investment advisory practice organized as a corporation. We structured the transaction dividing goodwill between corporate and personal goodwill, thereby avoiding corporate level tax on a substantial percentage of the receipts. This strategy, coupled with a change in residency, saved the majority shareholder almost $2 million in taxes.
- We worked with a client selling rental real estate to locate a replacement property and enter into a like-kind exchange. This resulted in tax savings on the full gain on the transaction.
Individuals needing further information please contact Diane Burke at 302-656-6632 or send her an email.
Businesses needing further information please contact Marie Holliday at 302-656-6632 or send her an email.
New Business Formation
It is exciting to start a new business! However, it is important to plan for the new business before you actually start so that you can select a business structure that best fits your needs.
Cover & Rossiter can assist you with:
- Determining a business structure that evaluates your legal exposure, tax advantages, and ease of operations.
- Determining your cash start up requirements and assist with financing strategies to raise the necessary capital
- Prepare a monthly budget to assist you with determining how much capital is needed to operate the company for the first year while you are establishing the business
- Prepare and file the application to obtain a Federal tax identification number
- Prepare and file registration paperwork for all state and local taxing authorities in which you will conduct business.
For further information, please contact Marie Holliday to assist you with your Strategic business needs at 302-656-6632 or send her an email.