Monday, December 10, 2007

Taking the Long Term View

As I’ve said many times before, there isn’t anyone who is selling an appreciated asset who doesn’t want full liquidity, full control, high interest guarantees and no tax obligation whatsoever.

This is not an option unless you want the wrath of the IRS upon you. So, the best option is to use the current tax laws to full advantage and give up some of the above to receive some savings in return.

Unless you are doing a 1031 exchange which can defer all taxes, to save on capital gains you need to resolve yourself to take payments in one of the other strategies over time.

If you take it all at once, you pay taxes all at once. Period.

Receiving a payment stream is really a good thing in most cases. Especially for anyone approaching or already in retirement.

There is a reason why you don’t receive your company pension or your social security in a lump sum. Most people would go through the entire amount long before their lives were over and would have nothing to live on.

Just check the statistics on Lotto winners and professional athletes and entertainers.

I know it is appealing to think of a big pile of money sitting in your bank account where you can access it at any time. But, ask yourself when was the last time you needed to access a huge sum all at once while you were growing your asset over the years.

The next article will focus on some instances where having an ongoing income stream can really be of benefit.

Paula Straub
Fill out a Qualification Questionnaire and see if you qualify to save capital gains tax. Go to

Find the “Definitive Beginner’s Guide to Potentially Saving Hundreds of Thousands of Dollars in Capital Gains Tax” at