Broker Check

Selling A Property or Business

Are taxes preventing you from selling?

Whether you own a business, home or investment property, owners are often hesitant to sell because of the capital gains taxes. Real estate and business ownership continues to provide people with tremendous growth opportunities but are vastly illiquid and difficult to sell tax efficiently. The real estate investor can utilize the §1031 Tax Deferred Exchange, assuming one follows the IRS guidelines from identifying a replacement, the percentage of debt, to the amount of time to close on the new asset. Although this strategy is viable and many §1031 exchanges are transacted daily, the strategy is a procrastination method not a tax and estate planning tool. Selling a business is much more difficult; often the seller will extend the sale over a period of years or unwillingly pay the taxes at the time of sale. There are limited options for sellers to defer or reduce their tax bills, here are your FOUR choices:

  1. Don’t Sell – No tax bill, but still dealing with the day to day burden of management.

  2. Sell & Pay Taxes – Tax rates on gains can be 40%+

  3. §1031 Exchange – Can you find a suitable property to buy and meet the IRS deadlines? (Applies to investment property only)

  4. Advanced Planning  With proper tax and legal advice you can defer capital gains, reduce estate taxes, & create liquidity. (Can apply to any appreciated asset)

To learn more about your options contact us.

What to consider:

  • Capital Gains Tax – how to minimize or eliminate its affects to your family
  • Estate Tax – how to minimize its affect on your heirs
  • Retirement Income – how to establish a steady and reliable income stream
  • Asset Protection – how to protect your family from creditors and lawsuits
  • Reduce Risk – through diversification
  • Liquidity – do you need access to the value of your assets now or in the future
  • Flexibility – implement strategies that best meet your needs