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A successful business was being prepared for sale for approximately $84 million dollars, with a $64 million-dollar gain. The gain was expected to generate $19 million in IRS taxes due!
We implemented a strategic tax sale opportunity, that allows the client to defer paying the taxes on the business sale for 30 years. In the meantime, the client has full access to invest the proceeds in full for the 30 years.
Rather than paying $19 million in tax today, investing that amount at just a 5% rate for 30 years, turns the balance to an incredible $82 million dollars. At the end of the 30 years the $19 million of tax would be paid, leaving a $63 million dollar increase in the client’s net worth, just by using this tax deferral method!
With over 200 offices nationwide, we are deeply experienced in virtually every aspect of the tax code for higher-income business owners and affluent families. Redwood Tax Specialist provides proactive tax designs essential for accountants and other tax professionals to help their clients make informed financial decisions in today’s quick-moving and sometimes volatile economic climate.