As the new year rolls in, it’s time to start thinking about your taxes. You may think the time has passed to alter how much you owe on your tax bill. However, there are a few steps you can take after the first of the year that may make a significant difference in what you owe the government.
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Qualified Opportunity Zones: What You Should Know
A Qualified Opportunity Zone is an economically distressed community within the United States. The US Census defines potential qualified opportunity zones, and then a state governor nominates them: the Secretary of the Treasury certifies them.
Conventional vs. Structured Installment Sales
When selling highly-appreciated assets, one of the main concerns for the seller is deferring capital gains tax. Essentially, if you sell an asset for more capital than you spent to acquire it, the government mandates that you pay tax on those gains.
How the Deferred Sales Trust Works
One of the most frequent questions we receive here at Reef Point is how the Deferred Sales Trust (DST) works. Usually, the person asking the question has a highly appreciated asset, such as a business or investment, that he or she wishes to sell, but definitely does not want to pay the substantial capital gains tax inherent in such a sale.
What is an Estate Tax Freeze?
An estate tax freeze is an asset management strategy by which you transfer ownership of some of your assets to your family members or other beneficiaries without triggering capital gains tax liability. Actually, the more appropriate term is estate freeze because what you’re doing is “freezing” the value of the transferred assets at their current fair market value. Their future appreciation will be attributed to your beneficiaries, not you. An estate freeze also gets the transferred assets out of your estate, thereby decreasing its value and the estate taxes it will have to pay upon your death.