Has it ever occurred to you that retirement planning is similar to a football game? If not, consider the following scenario.
Deferred Sales Trust
When you own a piece of highly appreciated investment real estate that you’d like to dispose of, you normally face paying substantial capital gains tax on the sale. However, one way to defer those taxes is to do a 1031 exchange for another like-kind property instead of an outright sale.
Experts agree that a business must add value to the products and services it sells in order to make a profit. Adding value also gives you additional benefits, including such things as the following:
Calculating any kind of tax, and the rate which you should apply to it, is not for the fainthearted. This is especially true of capital gains taxes. Why? Because so many factors can, and usually do, come into play when you’re dealing with capital gains. To begin with, as you already likely know, there are two types of capital gains taxes, one of which you’re sure to be liable for when you sell or otherwise dispose of an asset: long-term and short-term. Each of these has its own rate structure.
Tax season is quickly approaching, but it’s not too late to do some end-of-year planning that may well reduce the federal and state income tax you’ll have to pay come April. But you need to act quickly. Virtually all of the following tax reduction tips from Reef Point must be implemented by December 31.