The tax impacts of capital gains are a common concern for anyone selling a highly appreciated asset. There are many paths for reducing or deferring capital gains, but not as well known are ways to eliminate capital gains tax. So how can you eliminate such taxes?

First, let's start by explaining what capital gains tax is. Capital gains is a tax paid on the profits made from the sale of an asset — usually a property, business, stock or bond. For example, if you were to start a company from scratch and then sell it for $10 million, depending on which state you lived in, you may have a 20% to 37% capital gains tax to pay, or $2 million to $3.7 million.

Zero Capital Gains With A Specialized, Copyright Protected Trust

One way to eliminate capital gains is through the use of a Non-Grantor Irrevocable Spendthrift Discretionary Complex Trust. This type of trust is a contract trust and not Statutory in nature meaning it is not governed by the courts.

Contract-law trusts are based on private contracts, which are linked to Article 1 Section 10 of the Constitution and upheld by US Supreme court ruling. Trust accounting is different than the more commonly used generally accepted accounting principles, and the distributable net income is calculated in a different manner when using a complex trust. When trust documents are implemented properly, you can effectively transfer control of assets from one person to another without triggering a taxable event.

Our Trust utilizes a one-of-a-kind registered copyrighted trust that is able to legally, per the IRS trust tax code, defer taxes in perpetuity on both business and personal tax liability. Our trust defers and minimizes income and estate taxes to the fullest extent the IRS allows; in most cases between 78% to 97%.

Taxation follows ownership, and a trust system can provide you control without ownership. This will allow you to eliminate capital gains in an efficient way without looking for the latest loophole or deferring the taxes. A properly set up spendthrift trust allows you to avoid capital gains tax and also eliminates probate and inheritance taxes at the same time, while also increasing your tax efficiency overall.

The Right Structure With The Right Team

Spendthrift trusts are an option for anyone that is selling appreciated assets and will have significant capital gains tax, business owners that have significant passive or active income, and people concerned about asset protection.

Those with only W2 income are not generally a good fit for this tax solution.

The trust has many rules and regulations so you must choose a qualified team to implement and maintain and file your returns to keep you fully compliant. When seeking an instrument that provides the ultimate level of protection and tax mitigation, there is no comparison in existence.

Our Trust has been approved by the United States Copyright Office. Each Trust booklet contains an official Letter of Legal Opinion. They have been vetted in all fifty (50) states. The Trusts are in compliance with all laws/banking regulations and work in conjunction with IRS Code and support the reduction of tax fraud/schemes.

There are many tools for minimizing or deferring your capital gains, but properly established spendthrift trusts can allow you to have a more efficient tax structure, not only for capital gains and ordinary income tax but also for wealth protection and transfer.

Being informed and able to navigate tax laws will enable you to optimize your taxes to increase cash flow and compound your wealth. The Copyrighted Spendthrift Trust is designed for those clients who have the most to protect either now or in the future and is a proven method for enhancing your wealth and securing your legacy for generations to come.