1LessTax2_basic_strategies

What we do

Tax Efficiency Services Asset Transfer Advisor

Tax Deferral & Elimination Strategies for All Assets & Estates

for Owners or Beneficiaries of Land, Real Estate and Other Assets

A M&A background and experience in agriculture and energy allow FEC and Ken Wheeler Jr. to be familiar with tax advantages some tax professionals may not encounter. We assist with asset transfer by exchange and/or tax deduction assets as replacements plus advise entity & asset assignment to be most financially efficient for tax and estate goals. We provide unique strategies for asset sales and estate planning to potentially reduce or eliminate taxes. Can assist to divest, merge or purchase assets for most advantageous ownership with financial and estate goal consideration for owner goals. In the business world the benefits can increase cash flow and bottom line.

1LessTax & PayNoTax Alternatives - Options- Assignments * Asset Transfer Advisor

Through Affiliate www.1031FEC.com Free Consultation Appointment

When Planning, Transferring, Flipping or Selling Any Property or Business

Summaries of Alternatives For Diversification While Saving Tax Expense

Your Own Tax Advantaged Opportunity Zones

Significant Asset Gain Protect Income Reduce Tax Burden Asset Diversification Protect Taxable Gains

SAVE with Tax Saving Alternatives For Asset Owners-Sellers By Following New Tax Code

with Maximum Tax Deductions & Liquid Income Real Estate - Pay No Tax Potential

Flipping Homes or Any Real Estate?

Protect Income Newest Tax Deductions Diversification Enhance EBITDA

Reduce Tax Burden Maintain Wealth

We do not market annuities, insurance or list real estate or businesses. We may, with client permission, refer to those who do.

REHAB PROJECTS - ENERGY INCOME PROPERTY ACQUIRED AT ADVANTAGED PRICE

MANAGED PRODUCING OIL & GAS FIELD IMPROVEMENTS WITH INCREASING PRODUCTION VOLUME TECHNOLOGY

Acquisition Allows to Reduce or Pay No Tax when selling any property

Can replace IRC 1031 Like Kind Exchange without Limitations

First priority is property location, viability, income and management experience.

New and old energy tax codes combined in 2018 allows 100% deduction for all types income

Up to 90%+ deduction - all types of income included, not as in an IRC 1031 property exchange

Amount is for any type income as gain, depreciation recapture, ordinary, and investment including dividends

As preferred energy rehab project can involve taxable gain/recapture, not necessarily basis or cost of asset

Project accounted and some managed by high integrity CPAs, experienced, formerly with large CPA entity

Client CPA has energy tax code experienced CPAs for reference to client individual tax goals

Personal plan for each client to maximize client goal; i.e. more or less current income or gain

Recorded ownership allows to sell owned income property or IRC 1031 exchange to other qualified property

Income has tax shelter, gain can have tax shelter carried forward 15 years

Project manager's plan is divest in three-four years with choice to divest sooner or choose to continue project

View more at www.PayNoTax.biz

Go here For More Detail, Informational Meetings and/or Audio Dates & Times or Free CPA Consultation

FOR 1LessTax ASSET TEAM UPDATES

Request Non-Disclosure Agreement (NDA) when visiting about confidential detail

Return to Top of Page

REHAB PROJECTS - COMMERCIAL INCOME PROPERTY

REHAB PROJECTS - INCOME PROPERTY ACQUIRED AT ADVANTAGED PRICE IMPROVED FOR HIGHER INCOME

Tax Deferred for Exchange

For tax deferral the IRS Section 1031 has been prominent. Current tax code allows more advantaged alternatives.

Project accounted and managed by high integrity experienced property management with positive track record

Personal plan for each client to maximize client goal; i.e. more or less current income or gain

Recorded ownership allows to market or sell owned income property or IRC 1031 to qualified real estate

Income can have tax shelter, more with cost segregation. Gain can have tax shelter.

Most projects plan to divest in three-four years. Potential to divest sooner or choose to continue in project.

FEDERAL PROGRAM: QUALIFIED BUSINESS SALE GAIN TAX EXCLUSION

QSBS Gain Exclusion Law +Tax Deferral. Tax Savings for Business & Real Estate Sales

100% Performance Based Service By Private Equity Firm. Partner with CPAs, Attorneys, M&A Advisors

1. Under Federal Law QSBS IRC 1202 created for venture capitalists, each selling qualified business owner can receive up to $10 million gain tax free. Each Buyer or Investor can receive up to 1,000% return on their investment before incurring a tax obligation. Our value is overcoming the three disqualifying factors in acquiring QSBS status.

2. We offer consultations to CPAs, Attorneys, Business Owners & mid market M&A Advisors.

3. We also offer tax deferral for real estate & business activities ineligible for QSBS status.

4. For Business & Real Estate transactions larger than $2 million we offer more powerful solutions through major law firms where than can be no upper limit to deal size.

5. Ask us to explain the three step process enabling qualified business owners to create millions of dollars in additional value for both themselves and their business.

Return to Top of Page

LEGACYCHANGE

Your Personal Asset Estate LegacyChange Plan

LegacyChange Plans AKA Insured Grace Plans

Assisting to Preserve and Maintain Client Wealth

Assist tax elimination relief for your appreciated assets, sell, and pass through a third party non-profit company,

which generates a tax deduction that solves the tax problem with an insured grace contract

creating a guaranteed income stream that over time will replace the full value of the asset.

This prevents heir/beneficiary disagreements over sale of assets

as can be common in a trust or will. Any or all assets of monetary value are eligible.

LegacyChange Plan Basics

Grace or charitable bargain sale with installment contract (reinsured).

LegacyChange Plan acquires asset (by option contract)

LegacyChange Plan divests (sells) with non-profit tax advantages.

LegacyChange Plan pays seller with an insured installment contract.

Split interest transaction (multiple interest beneficiaries for non-profit)

&

ZERO DEBT PROJECTS - MANAGED NEW COMMERCIAL INCOME PROPERTY - ABSOLUTE LEASE

For Asset Owners and Sellers Conserving With Recession Resistant and Managed Real Estate

Tax Deferred for Exchange

For tax deferral the IRC Section 1031 is prominent. Cost segregation potential.

Project accounted and managed by high integrity experienced property management with positive track record

Higher income with 15-20 year absolute lease (no owner expenses) by major tenant for new income property

Recession resistant property category

Recorded ownership allows to market or sell owned income property or IRC 1031 to qualified real estate

Absolute lease: The renter pays all real estate taxes, all maintenance and all insurances with owner as beneficiary.

See more at www.LegacyChange.com

SALE LEASEBACK - ABSOLUTE LEASE - MANAGED

Go to 1LessTax Page 4

Return to Top of Page

We invite interested parties to meet and know our property managers, CPAs and rehab principals.

One can have a mediocre income property managed by experienced good managers and have success.

One can have the best property managed by poor or less integrity managers and do poorly fail.

We work with the best managers and venture partners.

To visit as venture partners we will complete non-disclosure agreements as all parties financial detail is confidential.

Request Non-Disclosure Agreement (NDA) when visiting about confidential detail

OPPORTUNITY ZONES

Opportunity Zones are development tool designed to spur development and job creation in certain communities. Opportunity Zones provide investors with a different tax tool than a 1031 tax deferred exchange, but can provide tax benefits if investments meet certain conditions.

The Opportunity Zone program is a new investment vehicle created under a provision of the Tax Cuts and Jobs Act of December 2017. The program was developed to encourage investors to invest funds in economically distressed communities thereby stimulating economic development in these areas. When certain funds are invested in these communities, known as Qualified Opportunity Zones (QOZ), investors are able to enjoy immediate as well as eventual tax benefits. Such benefits can include deferral of gain, partial forgiveness of deferred gain and complete forgiveness of certain additional future gains if certain investment criteria are satisfied. A 10 year commitment for full advantage is a consideration.

Locations can be challenging which is the reason for encouragement to consider this method.

One can learn more about the basics of Opportunity Zones here:

https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions

You can find Opportunity Zone resources including a map of all designated Opportunity Zones here:

https://www.cdfifund.gov/Pages/Opportunity-Zones.asp

Tax Defer-Deduct Comparison

Return to Top of Page

Notes

There are various tax strategies involving selling property that is both a personal residence and investment property. If property is held partially for personal use and partially for investment, such as a working ranch with a house on it in which the owner lives, a portion of the gain from the sale of the personal residence is exempt from tax under IRC §121 and the remaining tax can be deferred under §1031. Revenue Procedure 2005-14 clarifies how Sections 121 and 1031 can be used at the same time in connection with the disposition of the same property.

One can simplify without the §1031 exchange. LegacyChange and certain Income Rehab properties can defer or deduct all gain and depreciation recapture tax. The certain Income Rehab replacement property advantage is it can encompass only the gain allowing basis to be included to deduct gain and other tax.

2020 State Tax Rates

Capital Gains – Your rate will vary based on your taxable income (15 to 20%). For 2019, your rate may be 20% if taxable income exceeds $434,551 (single) or $488,851 (married filing jointly).
Net Investment Income Tax (NIIT) – If you have income from investments, including capital gains, you may be subject to a 3.8% net investment income tax on your adjusted gross income in excess of $200,000 ($250,000 if married filing jointly). Read more to see if this applies to you.
State tax –You may be subject to state or local income taxes. State tax rates vary from 0% to the highest rate in California at 13.3%. See 2019 rates here.
Depreciation Recapture – A flat Federal tax rate of 25% is applied for unrecognized gain due to depreciation.