SALE OF PERSONAL RESIDENCE

Problem

An older couple had owned for many years a personal residence now valued at $2.9 million. With their children grown with families of their own, they decided they wanted to downsize to a smaller home and increase their income. They were, however, hesitant to sell after learning that they would still owe more than $300,000 in capital gains taxes after paying off the property’s $1.2 million mortgage.

Ivory Stone Realty Tax Alliance Solution

The property owners sell their home, defer the taxes and receive more than $1.3 million at close of escrow to invest as they choose to generate more income for retirement.

What’s Next?

If you are thinking about selling your highly appreciated asset, Contact Us! Consultations are free of charge and take place at your convenience. We can also provide conference call consultations with your current advisors or other financial experts you trust to ensure that we are the right choice for you.

SALE OF TWO OFFICE BUILDINGS

Problem

The owner of two office buildings with a combined value of $14.9 million wanted to sell but faced a major problem. After costs of sale and paying the $12 million mortgage debt owed, he would not have enough to pay at close of escrow all the total taxes due, totaling $4.5 million. Consequently, he would be forced to pull out of pocket more than $2.0 million to pay off the balance owed to the IRS and state.  Included in this problem was the Debt Over Basis tax issue that alone triggered $2.0 million of the total amount of taxes owed.

Ivory Stone Realty  Tax Alliance Solution

The two buildings are sold for $14.9 million, sale costs are paid, the $12 million mortgage debt is paid off without triggering the taxes due for Debt Over Basis.  In addition, the seller receives at close of escrow more than $1.5 million to reinvest however he chooses.

What’s Next?

If you are thinking about selling your highly appreciated asset, Contact Us! Consultations are free of charge and take place at your convenience. We can also provide conference call consultations with your current advisors or other financial experts you trust to ensure that we are the right choice for you.

SALE OF A LEGACY RANCH

Problem

The owner of a legacy ranch had an offer to sell the land to a developer for $9 Million. The seller was concerned about how much he would have to pay in taxes since the ranch had appreciated significantly and had a low-cost basis. After consulting with their CPA, the seller learned he would owe nearly $2M in taxes after the sale.

Ivory Stone Realty Tax Alliance Solution

The ranch owner sold the property to the developer, deferred the taxes, and netted $1.4 Million more than he would otherwise have received without doing effective tax planning.  He increased the funds he received by 16% as compared to the net after-tax profit and enjoyed an 83% reduction in the tax obligation.

What’s Next

If you are thinking about selling your highly appreciated asset, Contact Us!  Consultations are free of charge and take place at your convenience. We can also provide conference call consultations with your current advisors or other financial experts you trust to ensure that we are the right choice for you.