A successful business was being prepared for sale for approximately $84 million, with a $64 million gain. The gain was expected to generate $19 million in IRS taxes due!
We implemented a strategic tax sale opportunity, that allows the client to defer paying the taxes on the business sale for 30 years. In the meantime, the client has full access to invest the proceeds in full for the 30 years.
Rather than paying $19 million in tax at the time of the sale, investing that amount at just a 5% rate for 30 years, turns the balance to an incredible $82 million. At the end of the 30 years, the $19 million of tax will be paid leaving a $63 million increase in the client’s net worth, just by using this tax deferral method.