Capital Gains Tax Planning

Most of the CRE Brokers I work with tell me that the number one objection to listing a property for sale today is the seller’s fears of the high taxes which may be owed from selling. They also don’t want to pay the inflated prices to purchase replacement properties in this highly priced real estate market environment to do a 1031 exchange.

Our team of tax experts — tax attorneys, CPAs, engineers and others –identify every available IRS approved benefit to reduce, defer or eliminate capital gains taxes.

For example, we were recently brought in to consult with a client for whom a 1031 exchange was not possible due to diminished inventory. The California-based CRE Broker worked with our team of experts to find a solution to the seller’s desire to sell, but not if the result would have been excessive taxes.

The seller was motivated to sell today, as opposed to the family selling after his death in a few years, because the market for his property had more than doubled in value in less than 18 months and he believed that offers today would not hold into the future.

The transaction resulted in a $40 million gain and would have normally left a $25.2 million federal, state and estate tax bill.

Our strategic partners applied various tax strategies, all tax code compliant, resulting in reducing the tax bill from $25.2 million to $4.4 million. As a result, the family received $35.6 million vs $19.2 million that they would have without tax planning.

And, the broker earned an $800,000 commission. The sale would not have taken place had his he not introduced us to his client to solve his excessive tax bill.

We provide a no cost benefit analysis through all phases of the Real Estate Tax Lifecycle™. We only need to gather very basic information and then, go to work for you.

Please watch the video below and let’s schedule an informational call soon. (615) 429-7883