Goleta, CA



I own my accounting practice, in which I research and analyze tax problems for other practitioners for the benefit of their clients.

Major issues encountered:

As a researcher for other firms, I encounter a very wide variety of issues, including parameters for 1031 exchange problems — such as whether the considered replacement property is in fact like-kind or what happens if the building is on leased instead of purchased land — how to handle expenses paid directly by partners in a law firm, closing out a partnership or S corporation, and others.

Years as a Bloomberg BNA subscriber:

About 16

Bloomberg BNA products most often used:

U.S. Income Portfolios Library, and Federal and State Forms services

Real Problems. Real Solutions.

I do research for other practitioners and turn the research and analysis over to them to implement a plan with their client. One recent research problem involved an S corporation that was formerly a C corporation with earnings and profits (E & P). The owners wanted to, in their words, “clean it up” by paying out all E & P as dividends.  Doing so would leave them with no exposure to corporate-level taxes that can apply to former C corporations that are now S corporations.

We began by using Bloomberg BNA Portfolios 730, 731, 762, and 764 to put the entire project into perspective. The Portfolios helped us to (1) tie down the best definition of earnings and profits, (2) establish the timing of events we needed, (3) create the plan, and (4) construct a presentation to the client.  We also used Bloomberg BNA to pin down the requirements for avoiding the net investment income tax. In the process, we used nearly every search tool they had available: the regular search, the advanced search, the keyword search, and the guided search.  Experimenting with varying searches gave us combinations of tools that yielded the most comprehensive results.

We used the Bloomberg BNA forms service to retrieve Form 5462 and its worksheet for applying the rules to calculate E & P.  We worked our way up through the years, using Bloomberg BNA explanations and the worksheet to establish exactly what happened in each year, to convert from retained earnings to current (for that year) earnings and profits, to deal with any distributions from E & P, and, finally, to determine the current year E & P that they needed to distribute.

All in all, Bloomberg BNA's resources helped us to a very satisfying end to one of many intricate research projects.  I highly recommend their Portfolios and forms service as a comprehensive means of researching and solving problems.