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David R. Zoellner Sr. presents at Thomas Duke Company, regarding new service - tax deferment
David R. Zoellner Sr. engaged the Thomas Duke Company, a Commercial Real Estate Firm, on learning a new service to defer taxes on the sale of real property and continue to act as a Real Estate Advisor for their clients.
By: Zoellner Whole Financial PLLC
Zoellner Whole Financial PLLC is a disruptor of the status quo in the financial service industry. By offering our service and additional tools to select real estate companies, they enter the arena as a commercial real estate service provider disruptor. Just as Amazon has turned several industries on their ears, by serving clients in a way that is designed to exclusively meet their needs, so too do our tools customize large transactions to support the needs and desires of commercial real estate sellers.
Mr. Zoellner and Duke conferred, that the real estate market in the U.S. is quite difficult to meet the demands of both sellers and buyers. We are late cycle in the economy and all the low hanging fruit in commercial real estate has been gone for years. Typical commercial real estate transactions include the selling of a property and an attempt to utilize IRC 1031 and defer taxes of the sale, by making a like kind exchange of real estate at the same price point or higher. Mr. Zoellner said, "Sell High and Buy even Higher. That is, if you can even find a property to buy." When you can't execute the second purchase to exchange, it's called a broken exchange.
Although 2017 had a record amount of broken exchanges across the country. Duke was pleased to state that their clients had not suffered a broken exchange in 2017. With the use of our Deferred Sales Trust ® Duke may never experience another broken exchange again for their clients. Instead of using only IRC 1031 to defer taxes, through Zoellner Whole Financial PLLC, they have the option to use IRC 453 to defer taxes on the sale of commercial real estate.
And the tax bite can be huge. The new tax reform offers no new advantages in capital gains taxes. Typical taxes owed on transactions over $250,000.00 include:
· Federal Long Term Capital Gain Taxes
· State Long Term Capital Gain Taxes
· Affordable Care Act Surcharge
· Recapture of Depreciation
The combination of all four taxes can be in excess of 50% of the selling price. By using the Deferred Sales Trust® all four taxes are deferred and the client can used the tax deferred proceeds in a manner that gives the seller control of when to pay the taxes and how to invest the proceeds. That combination of benefits are not true of the 1031 exchange.
The Thomas Duke Company now has another option to service their commercial real estate sellers in a manner that is customizable and unique in their competitive market. Without the companies in place through Zoellner Whole Financial and the Estate Planning Team, Duke would need capital, staff, a law firm, trust company, asset manager and outside consultants to begin to offer this service.
Both IRC 1031 & IRC 453 have been in the U.S. tax code for many decades and are complicated transactions. It's normal business practice to use specialists to complete these large transactions to follow the strict tax laws to benefit from tax deferral.
Mr. Zoellner explained, "I have over 25 years' experience in managing assets. Our partners have over 21 years' experience in using IRC Code 453 and the staff to handle Deferred Sales Trust ® large transactions. When dealing in matters that cross paths with taxes and large transactions, experience counts for a lot." Mr. Zoellner exclaims, "I don't recommend trying this out on your own. Anyone can walk a straight line but I wouldn't recommend doing so between the Grand Canyon."
For more information about Zoellner Whole Financial PLLC please visit http://www.zoellnerwholefinancial.com
David R. Zoellner, Sr. CEO/CIO
Zoellner Whole Financial PLLC