Whether you are running a growing mid-market company or managing a multi-entity enterprise, tax complexity is no longer optional reading. It is a daily reality. From mergers to cross-border transactions, from property portfolios to regulatory audits, New York businesses face a web of tax obligations that demand precision, strategy, and experienced guidance.

MMB+CO, a leading accounting and advisory firm, has spent decades helping clients across New York and beyond turn these complexities into opportunities. In this article, we explore five critical areas where expert tax advisory services make a measurable difference: cost segregation, M&A transaction advisory, corporate tax planning, cross-border tax strategy, and surprise custody examinations.

1. Cost Segregation Services: Accelerating Tax Savings on Real Property

Many business owners and real estate investors are leaving significant money on the table without realizing it. When a company acquires, constructs, or renovates a commercial building, the IRS typically depreciates the entire property over 39 years. However, not every component of a building depreciates at the same rate.

This is where cost segregation services become a game-changer. Through a detailed engineering-based analysis, cost segregation identifies building components that qualify for shorter depreciation schedules, typically 5, 7, or 15 years. These include items such as:

• Specialty plumbing and electrical systems
• Carpeting, removable partitions, and cabinetry
• Land improvements such as parking lots and landscaping
• Certain HVAC systems dedicated to a specific process or use

By front-loading depreciation deductions, businesses can dramatically reduce their current-year tax liability and improve cash flow. For a property valued at several million dollars, the tax savings from a properly executed cost segregation study can run into hundreds of thousands of dollars.

MMB+CO works alongside qualified engineers and tax professionals to conduct thorough cost segregation studies that hold up to IRS scrutiny. Their team ensures that every reclassification is substantiated with proper documentation, protecting clients both immediately and in the event of an audit.

2. M&A Transaction Advisory New York: Tax Strategy That Shapes Deal Value

Mergers and acquisitions are among the most consequential events in a company’s lifecycle. A poorly structured transaction can result in millions of dollars in avoidable taxes, missed deductions, or unexpected liabilities inherited from the target company. Conversely, a well-planned deal structure can unlock significant tax efficiencies and enhance the long-term return on investment.

For companies operating in New York’s competitive deal environment, M&A transaction advisory is not a formality. It is a strategic necessity.

What MMB+CO Brings to M&A Tax Advisory

The firm’s M&A advisory team engages at every phase of a transaction, from pre-deal planning and due diligence to post-close integration. Specific areas of focus include:

• Evaluating whether an asset sale or stock sale is more tax-advantageous for both buyer and seller
• Structuring earn-out provisions and deferred consideration to minimize tax exposure
• Conducting comprehensive tax due diligence to identify hidden liabilities such as unpaid payroll taxes, state nexus issues, or deferred revenue obligations
• Planning for Section 338(h)(10) elections and other elections that affect deal treatment
• Advising on net operating loss utilization and Section 382 limitations following a change in ownership

MMB+CO’s professionals understand that every deal has its own risk profile and business logic. Their advice is tailored to the specific facts of each transaction, not drawn from a template. Their reputation in New York’s advisory community means they can also collaborate effectively with deal attorneys, investment bankers, and other advisors to ensure seamless execution.

3. Corporate Tax Services New York: Beyond Compliance, Toward Strategy

Filing a corporate tax return is one thing. Building a tax strategy that reduces your effective rate, positions you for growth, and keeps you compliant across multiple jurisdictions is quite another.

New York presents unique challenges for corporations. The state imposes a corporate franchise tax, a Metropolitan Transportation Business Tax surcharge, and complex apportionment rules for multistate filers. Add to this the federal tax code’s ongoing shifts and you have a landscape where even experienced finance teams can struggle without specialized support.

What Corporate Tax Services from MMB+CO Include

MMB+CO’s corporate tax practice covers the full spectrum of tax needs for businesses of all sizes:

• Federal and state corporate income tax compliance and return preparation
• Quarterly estimated tax planning and cash flow management
• Research and development (R&D) tax credit studies
• Section 199A qualified business income deduction analysis for pass-through entities
• State and local tax (SALT) compliance, nexus studies, and apportionment analysis
• Tax provision preparation under ASC 740 for publicly reporting companies

Beyond compliance, MMB+CO places strong emphasis on proactive tax planning. Their advisors meet with clients throughout the year, not just at year-end, to identify planning opportunities before they close. This forward-looking approach consistently delivers measurable savings and reduces the risk of surprises come filing season.

4. Cross-Border Tax Planning New York: Managing International Tax Risk with Confidence

New York is one of the world’s premier financial centers. Its business community is deeply connected to global markets, and an increasing number of companies, whether domestic firms expanding internationally or foreign entities entering the U.S. market, face the challenge of managing tax obligations across borders.

Cross-border tax planning requires a deep understanding of both U.S. international tax rules and the tax regimes of the countries involved. Mistakes in this area are costly, both in terms of double taxation and regulatory penalties.

Key International Tax Challenges MMB+CO Addresses

The firm’s international tax practice helps clients navigate a broad range of cross-border issues:

• Transfer pricing policies and documentation for intercompany transactions
• GILTI (Global Intangible Low-Taxed Income) planning and mitigation strategies
• FBAR and Form 8938 compliance for foreign financial accounts
• Inbound structuring for foreign companies investing in the U.S.
• Outbound planning for U.S. companies expanding abroad
• Treaty analysis to reduce withholding taxes on dividends, royalties, and interest
• PFIC (Passive Foreign Investment Company) reporting and elections

With increasing IRS scrutiny on international structures and the global minimum tax framework taking shape under Pillar Two, expert guidance is more critical than ever. MMB+CO stays ahead of these changes and equips clients to respond with clarity rather than scrambling to react after the fact.

5. Surprise Custody Examinations: What Broker-Dealers and Advisors Need to Know

Investment advisers and broker-dealers registered with the SEC operate under strict requirements, including the custody rule under the Investment Advisers Act. One of the most consequential provisions of this rule is the requirement for a surprise custody examination conducted by an independent accountant.

These examinations are not scheduled or announced in advance by design. The purpose is to verify that client assets are being held and accounted for correctly, preventing misappropriation or misuse of client funds. Failure to cooperate, or worse, having deficiencies discovered during the examination, can result in serious regulatory consequences including enforcement action, fines, or suspension.

How MMB+CO Supports Registered Investment Advisers

MMB+CO has extensive experience performing surprise custody examinations for registered investment advisers across New York and nationally. Their team understands the SEC’s requirements under Rule 206(4)-2 and conducts these examinations with both rigor and efficiency.

Their services in this area include:

• Performing surprise verification of client assets in accordance with SEC requirements
• Preparing and filing Form ADV-E within the required timeframes
• Providing detailed findings reports that advisers can use to strengthen internal controls
• Advising clients on remediation where deficiencies are identified
• Supporting advisers in preparing for SEC examinations and responding to deficiency letters

Advisers who work with MMB+CO benefit not only from the required examination itself but from the firm’s broader regulatory knowledge. Having an experienced team perform your surprise custody examination is a meaningful risk management measure, not merely a compliance checkbox.

Why MMB+CO: Experience You Can Rely On

Tax advisory is not a commodity. The difference between a firm that files returns and a firm that genuinely partners with you on strategy can be worth millions of dollars over the course of your business. MMB+CO was founded on the belief that clients deserve advisors who understand their business, anticipate problems before they arise, and deliver thoughtful, actionable guidance.

With deep roots in New York and a national reach, MMB+CO serves clients across industries including real estate, financial services, healthcare, manufacturing, and professional services. Their team brings together CPAs, attorneys, and specialists who collaborate to address the full scope of each client’s tax and advisory needs.

Whether you need cost segregation studies, M&A transaction support, corporate tax compliance, international tax planning, or surprise custody examination services, MMB+CO has the experience, the expertise, and the commitment to deliver.

Frequently Asked Questions (FAQs)

Q1. What types of properties qualify for cost segregation studies?

Cost segregation studies are most beneficial for commercial properties including office buildings, retail centers, warehouses, hotels, restaurants, and medical facilities. Properties with a cost basis of at least $1 million typically generate the most significant tax benefits, though smaller properties can also qualify. Both newly constructed buildings and recently acquired or renovated properties are candidates for a study.

Q2. At what point in an M&A transaction should tax advisors get involved?

As early as possible. Ideally, tax advisors should be engaged before a letter of intent is signed. Many of the most valuable tax planning opportunities in a deal depend on how the transaction is structured from the outset. Bringing in tax counsel after a term sheet is agreed upon can limit options. MMB+CO recommends involving their M&A advisory team from the earliest stages of deal planning.

Q3. What is the New York corporate franchise tax and who does it apply to?

New York’s corporate franchise tax applies to both C corporations and S corporations doing business in the state. The tax is calculated based on several measures, including entire net income, capital, and minimum taxable income, with the taxpayer paying whichever method produces the highest amount. Multistate corporations must also navigate New York’s apportionment rules to determine what portion of their income is subject to state tax.

Q4. How does GILTI affect U.S. companies with foreign subsidiaries?

GILTI (Global Intangible Low-Taxed Income) is a provision introduced by the Tax Cuts and Jobs Act of 2017. It requires U.S. shareholders of controlled foreign corporations to include certain income earned by those foreign entities in their U.S. taxable income, regardless of whether that income is repatriated. The impact depends on factors such as the foreign effective tax rate, the amount of tangible assets in the foreign entity, and available credits. Proper planning can significantly reduce GILTI exposure.

Q5. How often must a registered investment adviser undergo a surprise custody examination?

Under SEC Rule 206(4)-2, an independent public accountant must perform a surprise examination at least once per calendar year for advisers that have custody of client funds or securities. The accountant must file Form ADV-E with the SEC within 120 days of the surprise examination date. Advisers using a qualified custodian may have different requirements depending on whether they have direct custody or deemed custody of client assets.