How to reduce long term cap gains - business sale

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peacefulmargin
Posts: 57
Joined: Thu Jul 10, 2008 6:42 am
Location: Woodstock,GA
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How to reduce long term cap gains - business sale

Post by peacefulmargin »

Have just found out a sale is occurring of a company where I am a minority owner. I am fortunate to be seeing some high 6 figure capital gains. However This is decades earlier than expected so I am scrambling with how to reduce taxes.

Thoughts so far:

- tax loss harvesting. Have a few losses but market has been growing so much that I don’t have many opportunities and have used all the previous years banked.

- donor advised fund - have been using these for my normal charitable giving but didn’t see how this would reduce cap gains but maybe just reduce overall tax bill.

-529s - two young kids putting the max in each would save about $900 in taxes.

Anything I am missing ? There doesn’t seem to be many options.
000
Posts: 8211
Joined: Thu Jul 23, 2020 12:04 am

Re: How to reduce long term cap gains - business sale

Post by 000 »

Time to pay the taxman his due. :twisted: :greedy
carminered2019
Posts: 1939
Joined: Fri Jun 21, 2019 7:06 pm

Re: How to reduce long term cap gains - business sale

Post by carminered2019 »

Just a thought
Close the deal in January, put all in TSM and if TSM tanks then tax loss harvest to off-set the gains from the sale of the business.
babystep
Posts: 775
Joined: Tue Apr 09, 2019 9:44 am

Re: How to reduce long term cap gains - business sale

Post by babystep »

Check out Qualified Opportunity Zones.
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