Staying in a property or business until you die or until the tax is lower is really costly when paying that tax is optional, especially if Congress does away with the estate tax and you lose the step-up in basis you were counting on.
Carmel, IN (PRWEB) May 15, 2017
As The Donald has told us, good tax planning is smart. Businesspeople who voluntarily overpay are not smart. Anyone waiting on the Trump tax plan to be finalized assumes either 1) they want to pay tax or 2) they don’t sell and get a step-up in basis on death. But what if one can sell and avoid a tax now to maximize value and didn’t waste time if the basis step-up at death goes away.
“Staying in a property or business until you die or until the tax is lower is really costly when paying that tax is optional, especially if Congress does away with the estate tax and you lose the step-up in basis you were counting on,” said James Smyth, Executive Director of Custom Structured Settlements, LLC, who has advised many high-net-worth business owners and individuals from all industries. “Even if they keep the estate tax, accepting poor returns for years and wasting the potential for depreciation step-ups for value increases are double-whammy costs.”
Smyth adds, “It really is possible to defer capital gains taxes indefinitely and forget about Trump’s plan. When selling a business or real estate, think of the years of value lost when tax is paid. Then consider the years of additional pre-tax earnings needed to make the tax back. In the meantime, what happens to your balance sheet, future income leverage and retirement implications? If it makes sense to sell, it makes sense to maximize the savings without losing valuable capital or being stuck in an underperforming asset. It’s possible to both protect your safety net of 100% dollars and acquire strategically valuable assets while doing so.”
Smyth and Arthur Jensen, Senior Tax Director of Custom Structured Settlements, LLC, have designed a way to share their 60+ years of professional tax leveraging insights and other valuable assets with businesses and appreciated asset sellers while deferring the capital gains tax indefinitely. Customers keep all of the money working and under their personal control. “Even if taxes do go down far more than expected, why force that tax until you know they are going back up?” asked Smyth.
“The cost of forcing taxes unnecessarily ignores opportunities of complete tax avoidance that Congress intends for small and mid-size business owners that most people just don’t know about,” added Jensen, who specializes in advanced tax, business and estate planning. “Some people like to see the money reinvested in their next business venture or property. Having that flexibility gives them more opportunity to build prosperity, which gives peace of mind and benefits everyone when incomes stay up.”
“Waiting on the Trump tax plan is sometimes a reflection of lack of clarity. The solution is to seek qualified advice for your unique circumstances,” concluded Smyth. “It costs 10 to 20 years to lose value and recover it again when paying capital gains and state taxes. You never recover that time, or the opportunity cost to preserve your gains and get better returns now.”
About Custom Structured Settlements, LLC
Custom Structured Settlements, LLC helps with structured settlements of taxable transactions. Its services ensure enormous tax savings, asset protection, wealth preservation and legacy planning. For more information, please call (317) 268-8880, or visit http://www.customstructuredsettlements.com. Custom Structured Settlements, LLC is located in the SePRO Tower, 11550 N. Meridian Street, Suite 125, Carmel, IN 46032.
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