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EXIT PLAN STRATEGIES

Defer capital gains taxes in your selling situation, by applying IRS-approved strategies.
Choose your circumstance:

EXIT PLAN STRATEGIES

Defer capital gains taxes in your selling situation,
by applying our IRS-approved strategies.
Choose your circumstance:

EXIT PLANNING

Defer capital gains taxes in your selling situation by applying our IRS-approved strategies.
Choose your circumstance:

Richard owns a fabrication
business in the oil & gas industry.

And now, he’s ready to sell…

SELLING MY BUSINESS

Richard owns a fabrication business in the oil & gas industry.

And now, he’s ready to sell…

SELLING MY BUSINESS

SELLING BUSINESS

Richard owns a fabrication business in the oil & gas industry.
Now, he’s ready to sell…

Man working with metal fabrication tools, with sparks flying.

RICHARD'S
SITUATION

Having poured his soul into building and managing the company, he is prepared to reap the benefits of years of hard work.

Richard knows his business is worth roughly $5 million, but now realizes he will have to give up approximately $1 million in capital gains taxes alone, not to mention what this lump sum gain will do to his ordinary income tax brackets.

After research, Richard is prepared to explore how the strategies and expertise of Matthew James Tax Pros could defer his capital gains tax burden, enabling him to retain more of his profit and potentially grow the principal.

Laptop with screen showing Matthew James Tax Pros website, matthewjamestaxpros.com.

RICHARD'S
SITUATION

Having poured his soul into building and managing the company, he is prepared to reap the benefits of years of hard work.

Man working with metal fabrication tools, with sparks flying.

Richard knows his business is worth roughly $5 million, but now realizes he will have to give up approximately $1 million in capital gains taxes alone, not to mention what this lump sum gain will do to his ordinary income tax brackets.

Laptop with screen showing Matthew James Tax Pros website, matthewjamestaxpros.com.

After research, Richard is prepared to explore how the strategies and expertise of Matthew James Tax Pros could defer his capital gains tax burden, enabling him to retain more of his profit and potentially grow the principal.

Man working with metal fabrication tools, with sparks flying.

After research, Richard is prepared to explore how the strategies and expertise of Matthew James Tax Pros could defer his capital gains tax burden, enabling him to retain more of his profit and potentially grow the principal.

RICHARD'S SITUATION

Having poured his soul into building and managing the company, he is prepared to reap the benefits of years of hard work.

Richard’s business is worth roughly $5 million, but realizes he will have to give up approximately $1 million in capital gains taxes, not to mention what this lump sum gain will do to his ordinary income tax bracket.

Ross and Cathi purchased
rental property as an investment
on a small street in the suburbs.

Now looking to retire,
they’re ready to sell and
move to the country…

SELLING MY REAL ESTATE

Ross and Cathi purchased
vacant land as an investment on a small street in the suburbs.

Now they’re ready to sell, retire, and move to the country…

SELLING MY REAL ESTATE

SELLING REAL ESTATE

Ross and Cathi purchased
vacant land as an investment on a small street in the suburbs.
Now, they’re ready to sell & move…

Small wooden home with increasing stacks of coins, indicating increase in value.

Throughout the years, their street has become a major thoroughfare, and the value of their real estate investment has increased tenfold. Because they purchased the land years ago, the asset is fully depreciated, with the cost basis remaining low.

Their capital gains tax burden will be substantial, totaling $420,000; and their ordinary income tax bracket for the year will adjust.

ROSS' & CATHI'S
SITUATION

Because of this, Ross & Cathi are looking for a 1031 exchange alternative – something that can help defer some of the capital gains without obligating them to invest in more real estate.

They’ve contacted the team at Matthew James Tax Pros to learn about strategies that could restructure their gains, reduce their taxes, and divert the money for retirement savings, which would otherwise go to the IRS.

Laptop on table, along with pastry and coffee, showing website of Matthew James Tax Pros, matthewjamestaxpros.com.
Small wooden home with increasing stacks of coins, indicating increase in value.

Because of this, Ross & Cathi are looking for a 1031 exchange alternative – something that can help defer some of the capital gains without obligating them to invest in more real estate.

They’ve contacted the team at Matthew James Tax Pros to learn about strategies that could restructure their gains, reduce their taxes, and divert the money for retirement savings, which would otherwise go to the IRS.

Laptop on table, along with pastry and coffee, showing website of Matthew James Tax Pros, matthewjamestaxpros.com.

ROSS' & CATHI'S SITUATION

Throughout the years, their street has become a major thoroughfare, and the value of their real estate investment has increased tenfold. Because they purchased the land years ago, the asset is fully depreciated, with the cost basis remaining low.

Their capital gains tax burden will be substantial; and their ordinary income tax bracket for the year will adjust.

ROSS' & CATHI'S SITUATION

Throughout the years, their street has become a major thoroughfare, and the value of their real estate investment has increased tenfold. Because they purchased the land years ago, the asset is fully depreciated, with the cost basis remaining low.

Small wooden home with increasing stacks of coins, indicating increase in value.

Their capital gains tax burden will be substantial; and their ordinary income tax bracket for the year will adjust.

Because of this, Ross & Cathi are looking for a 1031 exchange alternative – something that can help defer some of the capital gains without obligating them to invest in more real estate.

Laptop on table, along with pastry and coffee, showing website of Matthew James Tax Pros, matthewjamestaxpros.com.

They’ve contacted the team at Matthew James Tax Pros to learn about strategies that could restructure their gains, reduce their taxes, and divert the money for retirement savings, which would otherwise go to the IRS.

Capital Gains Tax-Saving Scenarios

Evening image of New York City's Financial District buildings.

NEW YORK CITY

Cityscape view of Los Angeles, at sunset.

LOS ANGELES

Downtown skyline of Chicago, with a park and bridge in the foreground.

CHICAGO

"The Big Apple" written in front of New York buildings.
"The Big Apple" written in front of New York buildings.
Cityscape view of Los Angeles, at sunset.
Cityscape view of Los Angeles, at sunset.
Downtown skyline of Chicago, with a park and bridge in the foreground.
Downtown skyline of Chicago, with a park and bridge in the foreground.

NEW YORK CITY

CASE STUDY: COMMERCIAL PROPERTY SALE

Sales proceeds after commissions & closing costs: $20,000,000
Seller's Original Basis: $5,000,000
Capital Improvements: $1,000,000
Depreciation: $4,000,000
Mortgage Balance at time of closing: $2,000,000
Seller's adjusted basis [purchase price + capital improvements - depreciation]: $2,000,000
Taxable gain [net sales proceeds minus adjusted basis]: $18,000,000
Federal Tax [unrecaptured section 1250 gain applies]: 20-25%
NY State & City Tax: 12.7%
Medicare Tax: 3.8%%

Sales proceeds after commissions & closing costs: $20,000,000
Seller's Original Basis: $5,000,000
Capital Improvements: $1,000,000
Depreciation:
$4,000,000
Mortgage Balance at time of closing:
$2,000,000

Seller's adjusted basis [purchase price + capital improvements - depreciation]:
$2,000,000

Taxable gain [net sales proceeds minus adjusted basis]: $18,000,000
Federal Tax [unrecaptured section 1250 gain applies]:
20-25%

NY State & City Tax:
12.7%

Medicare Tax:
3.8%%

Approximate tax due WITHOUT deferring tax on capital gains:

$6,770,000

Approximate tax due WITH deferring tax on capital gains:

Approximate tax due
WITH deferring tax on capital gains:

$0

Gold target, with arrow in the middle, on the bullseye.
Evening image of New York City's Financial District buildings.
Evening image of New York City's Financial District buildings.
"The City of Angels" written over the Los Angeles skyline.
"The City of Angels" written over the Los Angeles skyline.
Downtown skyline of Chicago, with a park and bridge in the foreground.
Downtown skyline of Chicago, with a park and bridge in the foreground.

LOS ANGELES

CASE STUDY: COMMERCIAL PROPERTY SALE

Sales proceeds after commissions & closing costs: $4,000,000
Seller's original basis: $400,000
Mortgage balance at time of closing: $300,000
IRC sec.121 exclusion [$250,000 per owner residing there for two of the last five years]: $500,000
Seller's adjusted basis [purchase price + section 121 exclusion]: $900,000
Taxable gain [net sales proceeds minus adjusted base]: $3,100,000
Federal Tax: 20%
CA State & City Tax: 13.3%
Medicare Tax: 3.8%

Sales proceeds after commissions & closing costs: $4,000,000
Seller's original basis:
$400,000

Mortgage balance at time of closing:
$300,000
IRC sec.121 exclusion [$250,000 per owner residing there for two of the last five years]:
$500,000

Seller's adjusted basis [purchase price + section 121 exclusion]: $900,000
Taxable gain [net sales proceeds minus adjusted base]: $3,100,000
Federal Tax:
20%

CA State & City Tax:
13.3%

Medicare Tax:
3.8%

Approximate tax due WITHOUT deferring tax on capital gains:

$1,500,100

Approximate tax due WITH deferring tax on capital gains:

$0

Gold target, with arrow in the middle, on the bullseye.
Evening image of New York City's Financial District buildings.
Evening image of New York City's Financial District buildings.
Cityscape view of Los Angeles, at sunset.
Cityscape view of Los Angeles, at sunset.
"The Windy City" written across Chicago's skyline at sunset.
"The Windy City" written across Chicago's skyline at sunset.

CHICAGO

CASE STUDY: COMMERCIAL PROPERTY SALE

Sales proceeds after commissions & closing costs: $10,000,000
Seller's original basis: $0
Business loan balance at time of closing: $250,000
Taxable gain [net sales proceeds minus adjusted base]: $10,000,000
Federal Tax: 20%
IL State Tax: 4.95%
Medicare Tax [does not apply to this situation]: 3.8%

Sales proceeds after commissions & closing costs: $10,000,000
Seller's original basis:
$0

Business loan balance at time of closing:
$250,000

Taxable gain [net sales proceeds minus adjusted base]: $10,000,000
Federal Tax:
20%

IL State Tax:
4.95%

Medicare Tax [does not apply to this situation]:
3.8%

Approximate tax due WITHOUT deferring tax on capital gains:

$2,495,000

Approximate tax due WITH deferring tax on capital gains:

$62,375

Gold target, with arrow in the middle, on the bullseye.
All scenarios provided are hypothetical and for illustrative purposes only.
Every situation is different and actual results may vary.

Ready to defer your taxes
or gain more knowledge?

Fill our form and we’ll reach out to get the ball
rolling on structuring a beneficial financial plan.

Ready to defer your taxes
or gain more knowledge?

Fill our form and we’ll reach out to get the ball rolling on structuring a beneficial financial plan.