Reducing, Deferring or Eliminating Capital Gains Taxes For Older Clients

Reducing, Deferring or Eliminating Capital Gains Taxes For Older Clients (Other Than 1031 Exchanges)

When an older client has an asset with a large capital gain, most advisors tell the client to hold it until he or she dies. In that way the heirs will get a step-up in basis to save them capital gains tax on a future sale.

However, the estate tax works in opposition to the capital gains tax. The estate tax is due on a date certain (9 months after the date of death, though there can be a 6 month extension, and the tax can be deferred over 15 years if more than 35% of the adjusted gross estate qualifies as a closely held business); and rate is 40% over the exclusion ($13,610,000 per person, to be cut in half in 2026).

The capital gains tax need not be paid because the heirs can decide to keep the property or enter into one of several structures (the purpose of our discussion) that reduce, defer or eliminate the capital gains tax; and rate is 37.1% over the asset’s basis.

Our speaker, Bruce Givner, has been practicing tax law for over 47 years. He will share 8 ways to reduce, defer or eliminate the capital gains tax without considering an IRC Section 1031 exchange. The program is a must for any attorney, fiduciary or professional who may advise older clients with significant financial resources.