THE CAPITAL GAINS ALTERNATIVE PROGRAM
Those of us who own highly appreciated commercial and residential investment real estate assets are often reluctant to sell because of capital gains and depreciation recapture costs associated with the sale. But what other choice do we have? Is there another way to deal with the capital gains tax deficits that so many experience when they sell their real estate assets?
The answer may lie in the Private Annuity Trust.
BEFORE YOU SELL TALK TO US!
THERE IS A WAY AROUND CAPITAL GAINS!
This IRS-accepted capital gains tax deferral program could save you thousands of dollars and at the same time make a profit on the money you would have paid to Uncle Sam in the year of the sale. Obviously, this strategy is gaining popularity among those who have highly appreciated assets that are marked for sale. You, too, can take advantage of this program once you understand how it works.
LET US SHOW YOU HOW TO MAKE MONEY ON THE CAPITAL GAINS
THAT YOU WOULD HAVE TO PAY THE IRS!
The process starts with a property owner, transferring ownership of the property to a dedicated family trust. Next, the trust "pays" the property owner (annuitant) for the property. The payment isn't in cash, but with a special payment contract called a "private annuity." The private annuity promises to make payments to the annuitant for the rest of his or her life. The trust then sells the property. There are zero taxes to the trust on the sale since the trust "purchased" the property in the form of a private annuity contract.
CAN'T FIND A 1031 EXCHANGE PROPERTY?
NEED A SOLUTION?
WE HAVE THE ANSWER TO YOUR PROBLEM!
A WAY OUT OF PAYING CAPITAL GAINS AND DEPRECIATION RECAPTURE
UP FRONT TO THE IRS!
Often annuitants will choose deferral of annuity payments because they have other income and don't need the payments right away. The tax code doesn't require payment of the capital gains until the annuity payments begin and the capital gains tax is paid to the IRS with an "easy installment plan" since only that portion of capital gains is due in proportion to the number of years the annuitant is actuarially stated to live. For example, if the annuitant begins to receive annuity payments at age 65 and the actuarial tables state that they will live until they are 85 years of age, then the capital gains are broken up into 20 payments (one per year). There is no interest or penalty on these deferred payments of the tax. On top of that, the tax payments will be made with depreciated dollars. Yet the investment money in the trust could grow at a greater rate than that of inflation.
HERE'S AN EXAMPLE OF HOW WELL IT WORKS!
We start with a $1,000,000 property value.
The annuitant's basis is $200,000, leaving a profit of $800,000.
We are estimating combined federal and state capital gains taxes at $160,000, which is 20% of the profit.
This leaves net cash of $840,000 in the direct sale vs. $1,000,000 in the annuity deferral sale.
We are assuming the investment cash earns a conservative 6% before income taxes for the next 20 years.
The age of the annuitant is 45 and he chooses to start his annuity payments at 65.
Under the direct and taxed sale, the property owner receives annual payments of $277,300 vs. $330,119
under the annuity plan.
This yields an estimated life payout of $5,546,000 under the taxed plan vs. $6,602,380 with the annuity strategy.
That is an advantage of $1,056,380 to the annuitant! This advantage is due to the larger amount of net cash that was initially available to invest for the annuitant.
As illustrated above, the Premier VI Private Annuity Trust has the ability to generate substantially more money over the long run than a direct and taxed sale. It is also superior to the charitable remainder trust and installment sales in many respects.
ENJOY WORRY FREE TAX SAVINGS!
THE IRS WANTS YOU TO USE THEIR MONEY INTEREST FREE!
THE P.A.T. TAX ALTERNATIVE PROGRAM ADVANTAGES!
THE 1031 EXCHANGE ALTERNATIVE!
Relax knowing that if you cannot find a suitable exchange property that you will still be able to cash out on your highly appreciative property without penalties! That's right! you do not have to exchange your property to defer your capital gains and depreciation recapture!
* GAIN THE ADVANTAGE OF NOT NEEDING TO FIND AN EXCHANGE PROPERTY!
* GAIN THE ADVANTAGE OF BEING ABLE TO CASH OUT IN TODAY'S HIGHLY APPRECIATED
* GAIN THE ADVANTAGE OF DEFERRING YOUR CAPITAL GAINS AND DEPRECIATION
USE THE IRS'S MONEY INTEREST FREE!
Relax knowing that you can legally use the IRS's money to make money interest free! That's right! The IRS is letting you use their money interest free to invest and make a profit! Learn how to pay the IRS the taxes that you owe with the profit that you earn with their money over the remainder of your lifetime!
* GAIN THE ADVANTAGE OF USING THE IRS'S MONEY INTEREST FREE!
* GAIN THE ADVANTAGE OF THIS IRS APPROVED PROGRAM!
* GAIN THE ADVANTAGE OF PAYING YOUR OWED TAXES WITH MONEY EARNED WITH THE
LEARN HOW TO GET PAST THE $250k-$500k TAX EXCLUSION BARRIER!
Relax knowing that if you have appreciated over the 1997 Tax Relief Act limits that you can still sell your property without paying any capital gains taxes over your $250,000 / $500,000 tax limits! That's right! This program can be used in conjunction with the 1997 Tax Relief Act and you can keep all your hard earned equity!
* GAIN THE ADVANTAGE OF THE 1997 TAX RELIEF ACT!
* GAIN THE ADVANTAGE OF CASHING OUT NOW WITHOUT ANY PENALTIES!
* GAIN THE ADVANTAGE OF KEEPING ALL YOUR HARD EARNED EQUITY!
THE HOMELIFEŽ REAL ESTATE ADVANTAGE!
Relax knowing that you are working with one of the most advanced real estate firms in the United States. HomeLife RealtyŽ agents are the most aggressive in finding solutions to your real estate needs whether it is marketing your home or investment property for top dollar or for helping you keep all your hard earned equity! At HomeLifeŽ real estate our agents are top full time sales professionals and with supporting staff that are carefully selected to be part of our firm. HomeLifeŽ agents are more knowledgeable than the average real estate agent due to the company policy that they attend numerous courses through HomeLife UniversityŽ to keep them up-to-date on current real estate trends and information. Our training is the most comprehensive in the industry. At HomeLifeŽ our agents are held to a higher level of professional standards for performance. This is a benefit to our clients as they are the highest standards in the industry and our policy manual guarantees our professional standards. HomeLifeŽ agents have a total commitment to you and our commitment is this: We will always strive to provide professional real estate services to the very best of our ability.
* GAIN THE ADVANTAGE OF THE EXPERIENCE OF A REAL PROPERTY INVESTMENT
* GAIN THE ADVANTAGE OF HIGHER EDUCATED REAL PROPERTY AGENTS!
* GAIN THE ADVANTAGE OF HIGHER PROFESSIONAL STANDARDS!
* GAIN THE TOTAL COMMITMENT ADVANTAGE!
SO YOU CAN GO ON AND ENJOY THE IMPORTANT THINGS IN LIFE!
Our clients tell us that they now have time to visit families and friends, play golf, and take vacations! The QUALITY of their lives improve because we take EXCELLENT care of their real property investments.
ENJOY THE QUALITY SERVICE FROM AN AGENT
WHO IS CONFIDENT ENOUGH TO MAKE THIS OFFER!
Next step is to meet with Kevin and his team for a no obligation, no nonsense consultation and find out what they can do for you.