Engineered Capital Gains Solutions, Inc is all about Deferring Capital Gains
Based on a 90-year-old tax law
IRC Section 453
24-year track record with 1000’s of closed transactions with
14 no change IRS audits And No-Charge Audit Defense
Do you or your clients struggle with capital gains tax and depreciation recapture when selling a highly appreciated asset?
- Are you selling your business or investment real estate and want to defer your capital gains tax instead of paying it to Uncle Sam?
- Are you selling your primary residence and the $250,000 or $500,000 exclusion is not enough to offset the capital gains tax?
- Are you are struggling with High Capital Gains Tax on the sale of your asset (artwork, collectibles, private stock, carried interest) of around 30-50% of your gain?
- Is a 1031 exchange pressuring you to overpay for CRE?
- Ready to be debt free from your business or property?
- How would having a no-cost back up plan for a failed 1031 help you to negotiate? How would purchasing CRE all tax deferred with no timing restriction (Optimal Timing) and a brand new depreciation schedule on your next CRE purchase help you create more wealth?
- Is estate tax a concern?
ABOUT
Those of us with clients that own businesses, highly appreciated stock, commercial or residential investment real estate assets, we often find those clients who are reluctant to sell their asset because of the capital gains taxes associated with the sale. Our Estate Planning Team offers an alternative to a 1031 Exchange to help your client reduce capital gains tax liability or to enable them to sell their property in a down market.
This capital gains tax deferral tool could save you thousands of dollars, and by having the opportunity to potentially make a profit on the money you would have paid to Uncle Sam in the year of the sale. Additionally, even in a depressed real estate market, because the client is making money (an interest payment) on the full value of the sale (the sales price) and not the net after tax dollars, your seller clients can reduce their price, SELL NOW, and still make out better over time via proper tax planning with a qualified tax professional. The Trust can also be more simply described as a no risk “seller carry-back” financing structure.
The process starts with initial due diligence. If the transaction is viable, the trust and property owner will negotiate to reach terms with regard to the asset(s). Then, the property owner would transfer ownership of the property to a dedicated trust. The trust then sells the property, stock or other capital asset to the buyer. Next, the trust “pays” the client with a payment contract called an “installment sales contract.” The contract promises to make installment payments to the owner or their trust and those payments can even be structured to continue to future generations with additional estate planning. There are generally minimal taxes to the trust at the time of the sale since the trust often acquires the property from the client for a price that may not be materially different from the sales amount.
Should your client choose, they can defer the start date of the principal payments. Your clients may have other income and may not need the payments right away. The tax code does not require payment of the capital gains tax until the seller starts receiving installment payments. The capital gains tax paid to the IRS is only that portion of the capital gains tax due in proportion to the number of years established in the term of the installment agreement.
The Trust has the ability to generate substantially more money over the long run than a direct and taxed sale. It is also superior to a direct installment sale as the concerns of a defaulting buyer are eliminated.
Primary Benefits:
- Tax DeferralWhen appreciated property is sold, tax on gain is deferred until receipt of payments.
- Estate Tax BenefitsAccomplishes an estate freeze for estate tax purposes.
- Maintains Family WealthHelps to maintain wealth within the family.
- Estate LiquidityConverts an illiquid asset into monthly payments.
- Retirement IncomeProvides a stream of income for retirement.
- Probate AvoidanceWith proper estate planning.
For Real Estate Professionals
Set yourself apart from your competition by offering your clients and prospects our Trust as a way to defer capital gains. The Trust is a valuable marketing tool to increase your high-end listings.
For Investment Advisors, RIA’S and insurance agents, banks and financial institutions
Set yourself apart from your competition by offering your clients and prospects our Trust as a way to defer capital gains. The Trust is a valuable marketing tool to increase your high-end listings.
For Business Brokers Our Sales Trust Strategy is the tool to help you solve all of the above & help you
Win more listings and differentiate yourself from your competition! Help your clients net more as this is a tax deferral marketing business growth system that will help set you apart from the competition and position you as the knowledgeable professional in the Business Broker industry. Educate your strategic partner circle and help them grow their business. When this happens then they can send you clients!
How the Sales Trust and Estate Planning Team can Transform your marketing.
More Business Brokers have clients who struggle with capital gains tax when they sell their business or commercial real estate. We use the Trust to help their clients gain tax deferral, liquidity, and diversification with their funds. This empowers Business Brokers to add massive amounts of value and win more listings. In today’s challenging and competitive marketplace, Business Professionals are looking for innovative ways to earn business.
How do you prospect for new clients and earn new business from your existing clients?
How do you set yourself apart from the competition and position yourself as a knowledgeable professional in your industry?
An American Bankers association Estimate that over the next 20 years approximately $17 trillion dollars will exchange hands as one generation(Baby Boomers) over its wealth to another. Many of these business owners want to retire from the day to day management and liability of owning a business.
How do you help baby boomers who are business owners navigate this wealth transfer and list their business with you?
The Trust also works for:
- CRE Brokers
- Luxury Real Estate Agents
- Escrow Officers
- Qualified Intermediary
- Insurance Professionals
- Financial Advisors
- Lenders
- CPA & Tax Professionals
The Trust Support website is available to:
- Real Estate and Mortgage Professionals
- Securities Advisors
- Insurance Professionals
- CPA’s and Tax Professionals
- Attorneys
- Banks & Financial Institutions
- Title Insurance Representatives
- Qualified Intermediaries Service Providers
What does our Estate Planning Team membership include:
- A comprehensive marketing plan
- Personalized lead generation websites
- Web based tracking system
- Customized Marketing Materials
- Client PowerPoint presentations
- Seminar tool kit
- The support of tax and estate planning experts
- Weekly training webinars
