Realizing Savings by Changing Residency
Industry: Bottles/Containers, Distribution-Manufacturing
Challenge: The owner of a S Corp headquartered in Missouri, moved his state of residence to Florida. However, the change was not properly reflected in his state tax returns.
Solution: The tax experts at Brown Smith Wallace helped him realize the tax savings resulting from his change in residency. He apportioned the S Corp's income on his Missouri non-resident individual return rather than have it taxed at 1005 as a Missouri resident. As we amended his tax returns, he saw a tax savings of $100,000 over three years.