Background:

A successful business was being prepared for sale for approximately $84 million dollars, with a $64 million-dollar gain. The gain was expected to generate $19 million in IRS taxes due!

Fortunately, they called one of our partners at Cash Balance Advisors!

The Plan:

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.

The Results:

Rather than paying $19 million in tax today, investing that amount at just a 5% rate for 30 years, turns the balance to an incredible $82 million dollars. At the end of the 30 years the $19 million of tax would be paid, leaving a $63 million dollar increase in the client’s net worth, just by using this tax deferral method!