Keep More of What You've Built.
The sale of a business, real estate, or another appreciated asset can create a substantial capital gains tax bill. Strategic planning before the sale can provide opportunities to reduce, defer, or even eliminate the tax.
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REDUCE. DEFER. ELIMINATE.
The sale price was negotiated.
Your tax strategy determines how much you actually keep.
Bluecrest Tax Advisors works with tax attorneys, CPAs, and tax strategists to develop custom strategies designed to reduce, defer, or eliminate capital gains taxation. Each strategy is based on the client's specific financial situation, the asset being sold, and the client's short- and long-term goals.
For a qualifying sale, the tax code allows eligible capital gains to be recognized over time instead of all at once in the year of sale. A specialized trust or installment-sale structure may be used as part of the transaction when properly designed and implemented.
Because the full tax is not due immediately, more of the sale proceeds may remain available for investment and potential growth. The capital-gain portion is generally recognized as installment payments when received.
Deferral can also reduce the present-day economic cost of a future tax payment because future dollars may have less purchasing power due to inflation. Additionally, other tax-reduction strategies are available to offset taxes as payments are received.
Simply stated, sale proceeds can remain invested within the trust rather than being immediately reduced by the full capital gains tax. Capital gains taxes are generally paid as payments are received, allowing more money to remain invested and potentially grow. Deferring the tax also allows it to be paid later with future dollars that may have less purchasing power because of inflation, further increasing the potential value of the deferral.
For qualifying investors, eligible capital gain—not necessarily the full sale proceeds—can be invested in a Qualified Opportunity Fund.
The original capital gain receives deferral treatment provided under applicable Opportunity Zone rules. In addition, if the Qualified Opportunity Fund investment is held for at least ten years, qualifying appreciation on the Opportunity Zone investment can be excluded from federal capital gains tax.
Simply stated, Investing eligible gains from your sale in a Qualified Opportunity Fund can defer the tax, while qualifying growth on the investment can be capital-gains-tax-free when held for at least 10 years.