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Main Street Business

#478 Four Case Studies of Common Main Street Business Owners

Feb 20, 2024
Experts discuss buying real estate with retirement accounts, rental properties for passive income, selling a business with tax implications, and using Charitable Remainder Trust for savings. Legal structures like S corporations and LLCs are highlighted for asset protection and tax benefits. The 'long game' in real estate investment and compounding benefits over time are explored. A must-listen for real estate investors and business owners looking for tax-saving strategies.
41:58

Podcast summary created with Snipd AI

Quick takeaways

  • Strategic tax planning is crucial when selling a business, involving advance preparation, deal structuring, and options like charitable remainder trusts for optimal tax efficiency.
  • Real estate investment with an IRA or 401K offers an alternative to traditional investments, providing tax advantages and long-term wealth building benefits.

Deep dives

Main Street Business Owner Selling a Flooring Business

A business owner in his 50s is selling his profitable flooring business, negotiating a deal to sell it for $2.8 million. The buyer opts for an asset purchase, setting up a new LLC to run the business, with the seller carrying a 10% note for $280,000 over five years. Tax planning considerations include the allocation of purchase price, potential for a 1031 exchange on real estate, and establishing a charitable remainder trust for tax-efficient post-sale income.

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