Tuesday, December 27, 2005

The Importance of Proper Planning BEFORE you Sell Your Asset

The one thing I can't stress enough is the importance of proper planning before you finalize the sale of your appreciated investment property.

As I complete my series of "Interviews with the Professionals", the one thing that is common among all aspects of a strategy is to work with knowledgeable, experienced professionals who can guide you through the process of whichever tax saving strategy is most suitable for your unique situation and Do It Right!

Whether you choose a 1031 Exchange into a Tenant in Common Property, a Private Annuity Trust, a Charitable Remainder Trust, or some other vehicle, this is not a time to do it all on your own.

These are complicated and detailed entities and it's the IRS you ultimately have to answer to. I don't know about you, but they are one organization that I personally don't want scrutinizing my every tax form.

This is not the time to penny pinch. The advice of a good Tax Professional, Attorney, Qualified Intermediary, Trust Officer, Financial Advisor, and Sponsor Company representative can literally save you thousands more than the costs involved and keep your strategy from being challenged and perhaps disqualified down the road.

If either your trust or your exchange is challenged, those huge amounts of taxes you had intended to defer will be due with penalties and interest.

If you had a brain tumor, I'm sure you'd want the best professional you could find. Think of tax planning the same way. After all, it is your hard earned money at risk.

Stay tuned for the launch of my "Interviews with the Professionals" series. You'll hear the right questions to ask to make your strategy a success.

Paula Straub
http://www.savegainstax.com
askpaula@savegainstax.com