Background 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!
Fortunately, they called one of our Managing Directors at Redwood Tax Specialists!
The Plan 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.
The Results 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!
"We reduce taxes by 50% almost 100% of the time."
Luke Kibler, Managing Director
Redwood Tax Specialists
Redlands, CA and Surrounding Areas
This website has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice.