Many don’t realize, but yes, an asset can be sold and you can avoid Capital Gains tax by leveraging an Intentionally Defective Grantor Trust, also known as an IDGIT. An IDGIT is a strategy for family businesses who want to keep the company in the family, with no interest in selling the business long-term, to get the business outside of the estate into an irrevocable trust without using Gift tax exemption. But, as you would expect, there are nuances which Jeff Bannon, a succession planner with The Rawls Group, and Kevin Gilbreath, a tax partner with Crowe, discusses in this episode of the “What’s Up with Biden’s Proposed Tax Changes” series.
For more on this topic, check out the other episodes:
- When are My Taxes Going Up on Capital Gains and Qualified Dividends?
- What is the Current Lifetime Gift Tax Exemption & When Will it Be Cut?
- What is Happening with 1031 Exchanges with Real Estate?
- Know What Assets You Should Gift and To Whom
- How to Gift or Sell an Asset AND Remain in Control
As you listen to this episode you will walk away with key takeaways and will realize you will want more. Leverage our Succession Readiness Survey A 7-minute investment in time will put you in an informed position of opportunities many business owners overlook impacting business value, growth, lifestyle, and ultimately achieving your vision.
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Personal Financial Planning
Personal Financial Planning
Estate planning is a complex endeavor, especially for owners of capital-intensive complex business’. Throw active and inactive family into the mix and trying to figure out what is fair, how to provide opportunities for the next generation without enabling them, and maintain family harmony.
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In complex family and business environments, it is imperative to lean on expert legal and tax advice who specialize in the same size business and estate as you. We are not attorneys or CPAs but know experienced advisers if you are looking for sophisticated advisory services.
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