SALE OF A LEGACY RANCH
Problem
The owner of a Texas legacy ranch had an offer to sell the land to a developer for $9 Million. The seller was concerned about how much he would have to pay in taxes since the ranch had appreciated significantly and had a low-cost basis. After consulting with their CPA, the seller learned he would owe nearly $2M in taxes after the sale.
WRCRES Tax Alliance Solution
The ranch owner sold the property to the developer, deferred the taxes, and netted $1.4 Million more than he would otherwise have received without doing effective tax planning. He increased the funds he received by 16% as compared to the net after-tax profit and enjoyed an 83% reduction in the tax obligation.
What’s Next
If you are thinking about selling your highly appreciated asset, Contact Us! Consultations are free of charge and take place at your convenience. We can also provide conference call consultations with your current advisors or other financial experts you trust to ensure that we are the right choice for you.