Custom Structured Settlements, LLC announces The Tax Protector℠, a strategic solution to tax surprises from boot and §1031 failure. The Tax Protector℠ uniquely applies the 60+ years of deep tax planning experience of founders Art Jensen, CPA and James W. Smyth, Esq. It enhance control, flexibility, and leverage in property sellers while eliminating tax dangers from unexpected developments during a 1031 exchange. Even when the §1031 intermediary makes mistakes or market conditions change, The Tax Protector℠ ensures against federal and state transaction taxes, and provides peace of mind and well-being protection. It can be employed by one or all partnership owners in multi-owner sales. The deferred installment protection, friendly investment approach to enhance wealth-builders’ core competencies, and step-up in basis at death, provides complete tax avoidance as part of a long-term strategy.
The growth of the §1031 exchange industry speaks volumes for the tax benefits of exchanges, and perhaps for the fascination taxpayers have for continuing balance sheet growth without loss of leverage or income accumulation. Some §1031 intermediaries, also called facilitators and accommodators, are more cautious than others. Still, personal and company intermediary mistakes do occur. The mistakes are rarely the taxpayer’s fault, though he or she gets the most gray hair and the deepest loss from these mistakes.
Even without mistakes by facilitators, §1031 veterans know an exchange can generate enormous stress. Seeking to locate qualified, satisfactory replacement property is a daunting task. Depreciation loss or recapture and impact on after-tax earnings, and sometimes overlapping tax years can prove overly complex and troublesome. Closing on the property while keeping one eye on the ticking clock around identification and replacement periods sometimes causes loss of sleep. The less time remaining and the bigger the unknowns, the more vulnerable a taxpayer’s negotiating position becomes. Too often, replacement property analysis requires significant, unvetted assumptions.
Using The Tax Protector℠, taxpayers will never find themselves with unanticipated cash and a current tax bill. As a backup plan, put in place before the §1031 exchange, taxpayers have complete protection if some or all of the §1031 fails, and an option to renew their depreciation values to 100%.