“Save me $1 million.” (How about $2.5?)

A successful radio station owner was determined to build a family empire — a legacy to leave his children and grandchildren. A key step involved selling the station and using the proceeds to purchase a variety of other companies. Having worked with Cohen & Company for many years, he knew what we were capable of. So, when Tax Partner Tracy Monroe joined the client’s service team, he felt comfortable laying down a unique and daunting challenge: “Save me $1 million in taxes.”

Using a combination of state and local tax techniques and transactional structuring strategies over a period of years, Tracy and the Cohen & Company team have saved the client more than $2.5 million in taxes (the first million of which was realized in the first four years following the transaction).

How we did it:

• We used our state and local tax expertise to evaluate and re-position residency statuses. We structured the sale transaction and used gifting techniques to save the owner Ohio tax obligations. We used additional structuring expertise on a subsequent sale of a radio tower owned by the client. Our treatment of the income from the sale resulted in additional tax savings.
• While achieving a combined total of $2.5+ million tax savings is not typical for every client, we do enjoy a challenge. That’s why we remain diligent in collaborating with clients and colleagues to uncover the most promising opportunities throughout the entirety of the relationship.

Connect with Tracy Monroe or any of our tax experts to start realizing your opportunities.