Pay No Business Tax

SELL YOUR COMPANY AND PAY NO TAX!

Your business has matured, or your real estate has appreciated, time to cash out and sell.  It has taken a long time, and since you have held your shares or real estate for greater than one year, the gain qualifies for long-term capital gain taxation.  A 15% federal tax rate; not bad!

Yet, 15% of a $10,000,000 gain is $1,500,000.  With a $20,000,000 gain it is $3,000,000.  That is an awful lot of money.

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Tax Shelter

The Last Tax Shelter?

Tax shelters have been a bad word since legislation was designed to eliminate what was considered abusive.  From the sweeping language of the Tax Reform Act of 1986, Pub L. 99-514, tax shelters were, in essence, wiped out and became the equivalent of a 4-letter word in tax planning.

But are tax shelters really gone?

Haven’t there been cases where the IRS has alleged that certain devises are still abusive tax shelters?

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