#485 10 Capital Gains Tax Strategies that Keep More Money in Your Pocket
Mar 16, 2024
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Discover expert strategies to navigate and minimize Capital Gains tax, including using trusts, 1031 exchanges, solar projects, and Roth IRAs. Learn how small and large businesses can benefit from these techniques, ultimately saving thousands of dollars in taxes.
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Quick takeaways
Utilize Charitable Remainder Trust (CRT) to transfer assets, avoid capital gains tax, and receive payments tax efficiently.
Consider Deferred Sales Trust (DST) for controlled payouts and family inheritance, but assess structuring costs for suitability.
Deep dives
Avoiding Capital Gains Tax with CRT
One strategy discussed is the Charitable Remainder Trust (CRT), which involves transferring a highly appreciated asset to a trust to avoid capital gains tax. By donating the property to the trust and setting up unit trust payments based on age and gender, individuals can receive annual payments without incurring immediate capital gains tax. Additionally, the donation to the CRT offers a tax deduction, and the trust may eventually pay out to charity or to family tax-free.
Delaying Capital Gains Tax with DST
Another strategy highlighted is the Deferred Sales Trust (DST), similar to the CRT but with some differences. The DST involves selling an appreciated asset to a trust that pays out money to the seller over time, allowing tax payment as the money is received. While the DST offers control over payments and the opportunity for family inheritance, its structuring costs need to be considered, making it a strategy more suitable for certain situations.
Offsetting Capital Gains Tax with Real Estate Professional Status
Offsetting capital gains tax can be achieved through strategies like the Real Estate Professional status, leveraging accelerated depreciation on rental properties. By qualifying as a real estate professional or utilizing the short-term rental loophole, investors can generate significant tax write-offs from rental properties. This approach allows for the offsetting of capital gains from other investments, providing a viable tax-saving strategy for individuals looking to optimize their tax liability.
In this episode of the Main Street Business Podcast, host Mark J Kohler unpacks and breaks down the best ways to tackle Capital Gains tax. He maps out ten helpful strategies that can give you the edge you need to offset Capital Gains and save thousands of dollars.
Here's what you can expect:
An in-depth view of ten powerful strategies aimed at navigating capital gains tax, typically kept behind a paywall, now accessible for all.
Valuable insights usually reserved for the wealthy elite.
A clearer perspective of CRT, 1031 Exchange, Opportunity Zones, Installment Sales, and more, to help you take on capital gains tax with confidence.
Secrets to managing professionals effectively for optimal results and substantial savings.
More practical applications that can be used to mitigate capital gains tax burdens effectively.
A better understanding of how these strategies can benefit small and large businesses, as well as individuals.
If you’ve been looking for a compass to help you navigate the complex Capital Gains landscape, this is one episode you don’t want to miss. Whether you’re managing a small business, big business, or just yourself, these strategies give you the tools you need for achieving the best results.