HOW TO PICK THE BEST CAPITAL GAINS TAX DEFERMENT STRATEGY Over the past 5 years, I have talked to many investors about various experiences with tax strategies. Some have been highly successful at leveraging tax strategies for their assets. For others, tragedy. Tragedy because either they missed out on an opportunity that they did not know about or tragedy because they chose a strategy that did not really fit what they needed.
In this brief article, I will go over some important things to consider when choosing a capital gains tax deferment strategy. Before I get into the 3 key components I look at, we need to be reminded that tax planning is always better than tax reaction. Planning happens before the sale, sometimes a significant amount of time ahead of a sale. Tax reaction is when a client is scrambling to put
something together because they are already in the process of a sale. Planners have more options to choose from. Reactors have fewer options. There are three things that need to be considered in picking a tax deferment strategy: Numbers, Goals, and Personality. Most of the time, looking at these three issues will help a client to home in on what is best.
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