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Practices + Industries

Tax

Overview

Turner Padget’s tax group not only connects clients with experienced tax attorneys, but it also provides access to attorneys who have earned advanced degrees and specialist certifications in taxation. Our clients benefit from our strong understanding of tax law, as well as our awareness of the latest legislative and industry developments at the federal, state, and local levels. This knowledge helps us to provide creative, yet practical, solutions to the tax problems our clients face. We work closely with our clients’ accountants and financial employees to devise strategies to avoid tax problems before they arise.

When our clients have tax issues that bring them before the IRS or the South Carolina Department of Revenue, we have a proven track record of providing successful resolutions. We represent clients in administrative hearings, audits, appeals, tax collection matters, and tax litigation. At the federal level, our attorneys have successfully negotiated with the IRS to obtain reduced tax assessments, penalty waiver and abatement, lien releases, offers in compromise, and installment payment plan agreements. At the state and local levels, our attorneys have achieved favorable outcomes for clients in matters involving property taxes, sales and use taxes, and income taxes.

Real estate owners, developers, and investors throughout South Carolina turn to us for representation on the tax aspects of real estate transactions. During the pre-acquisition and development phase, we advise and assist clients with selecting and forming the appropriate entity for real estate ownership. Our goal is always to maximize tax advantages while meeting our clients’ non-tax, business objectives. As projects move forward, we help clients identify tax efficient ownership and exit strategies such as conversion of ownership entity status, conservation easements, and I.R.C. Section 1031 “like kind” exchanges.

Representative Engagements

  • Successfully negotiated and entered into favorable installment agreements with the IRS for affiliated entities with over one million dollars in combined liability for federal employment taxes. Negotiations also involved a successful request for abatement of penalties and the revocation of responsible-party status for shareholder owners.
  • Represented hundreds of clients in structuring and closing tax-deferred, “like kind” exchanges and reverse exchanges under the safe harbor provisions of Internal Revenue Code Section 1031 and Rev. Proc. 2000-37 respectively.
  • Advised a client in regard to, and closed, two apartment complex development projects involving low-income housing tax credits and the Housing Credit Exchange Program promulgated under Section 1602 of the American Recovery and Reinvestment Act of 2009.
  • Served as landowner and land trust counsel in negotiating, drafting, and closing purchased and donated conservation easement transactions during the previous three years involving well in excess of ten thousand acres of real property and over ten million dollars in state and federal tax incentives.
  • Designed and implemented numerous strategies using, among other things, combinations of limited liability companies (LLCs), family limited partnerships (FLPs), charitable remainder trusts (CRTs), and intentionally defective grantor trusts (IDGTs) to minimize the income tax and estate tax burdens associated with certain types of real property while also facilitating the transfer of that property or the value associated with it to subsequent generations.
  • Designed a Charitable Lead Trust to which a successful physicians' group contributed its medical office building, thus creating an income tax deduction. The purchaser of the practice leased the office building back with rent that enabled the building to be transferred to the physicians’ children at the end of the trust term at a value substantially higher than the original value, without incurring a gift tax.