If you like many home sellers have contemplated how to minimize your capital gains tax other than through a 1031 Exchange, read on.
You may well have contemplated selling your home until you saw how much capital gains tax will be imposed on such a sale and what you actually would walk away after the sale. Most likely your considerations concern maintaining your current lifestyle, being able to retire, and conserving your home's equity and value gains.
But an ordinary sale where capital gains tax is due that is difficult to do and to justify selling, even if you wish to downsize. Many baby boomers, therefore, are remaining in their home because it is difficult to do just that.
The good news is that in this case knowledge truly is power and can save you almost the entire capital gains tax due. Additionally, the strategy we are referring to here can be more advantageous than a 1031 exchange. It also serves as an estate planning tool. Allow me to explain.
Your tax liability can actually be addressed with a deferred sales trust, a specialized tool that you set up. A deferred sales trust defers estate taxes and puts the saved tax monies into a trust account. Other benefits of deferred sales trust include:
* maintaining family wealth
* estate liquidity
* retirement income
* probate avoidance when combined with proper estate planning
* lowering or entirely eliminating ownership risk
Obviously, there are subtleties to this tool and to better understand it, please call or email for an in-depth consultation. And visit our website here.
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