Justin explains his journey from working in group benefits to founding Elevated Tax Strategies, which collaborates with business owners and their CPAs to identify specialized tax savings opportunities often overlooked by generalists. He describes how they help clients save tens or hundreds of thousands, and in some cases millions, of dollars through legal tax strategies and incentives that require specialized expertise. The discussion touches on the types of businesses that would benefit most from these services.

Justin explains the challenges of capital gains taxes for business owners and real estate investors, highlighting how states are becoming more aggressive in taxation. He detailed 1031 exchanges for real estate and described a similar strategy using Section 453 for businesses and other assets, which allows for tax-deferred reinvestment without the same restrictions as 1031 exchanges. Justin notes that these strategies can help preserve capital and allow for diversification beyond real estate, with business owners often not needing the full sale proceeds immediately and wanting to preserve wealth for future use or legacy purposes.

He covers tax-deferment strategies for business sellers, particularly using Section 453 structures to defer capital gains taxes. He describs how business owners can capture sale proceeds into an entity (trust or LLC) to pay taxes gradually over time rather than upfront, allowing the full sale amount to work for the owner's long-term financial goals. Justin clarifies that while the minimum gain needed is around $500,000 for the strategy to be worthwhile, the structure can accommodate multiple transactions and provides flexibility in managing both investments and income distributions.

Justin can be reached at justin@elevated.tax.

John Martinka
Jessica Martinka

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