Capital Gain Guardian
Taxes are a reality. However, with proper planning, the pain of taxes can be reduced and deferred. Capital gains taxes enjoy what can be a lower tax rate, but many people prefer to defer the capital gains and other taxes for decades so that they can invest and build additional assets.
Unfortunately, the most common tax deferral strategy, the 1031 like-kind exchange, requires one to reinvest an amount that is equal to or greater than the asset sold as well as assume an equivalent amount of debt if the capital gain and other taxes are to be fully deferred. Further, with the change in the tax law in 2018, the 1031 may only be used on real business assets, so businesses and other personal business assets may no longer take advantage of the 1031 like-kind exchange. And there may be more changes coming to the law for 1031 exchanges!
Additionally, with the 1031, there are strict timelines that must be met or one risks having the tax deferral fail and the taxes come due immediately. This may prevent selling while values are high and then buying after a market correction.
What is a person to do who wants to sell now, defer taxes for decades and still gain access to an amount that is nearly equivalent to their equity to use how, when, and on what they desire?
Good news! We may have the answer you have been looking for! With the Capital Gain Guardian, owners may:
1) liquidate their holdings that have capital gains (most real and personal property that is either business or non-business),
2) receive a nearly equivalent amount as their equity in their holdings and
3) defer capital gains and other taxes for decades.
If this sounds of interest, contact us today to discuss if this capital preservation strategy might be right for your needs and goals.
QUESTIONS & ANSWERS
Q: What assets qualify for the strategy?
A: Most capital assets qualify (real or personal), but we must decide on a case-by-case basis if the strategy is a good fit.
Q: What situations realize the greatest benefit?
A: Low tax basis, high gains, seeking for tax deferral and access to funds to invest as desired.
Q: Is the strategy tax code compliant?
A: Yes! It is compliant and has been used for decades.
Q: How long does it take; will it add time to escrow?
A: We need a minimum of two weeks to be able to implement the strategy. Normally, it does not add time to escrow.