Deferred capital gains?

[Cajundaddy]

What does the Pelican braintrust suggest here?

My brother is selling off one of his business ventures and thinks he will walk with around $200k after the dust settles. He doesn't need the cash right now and really would rather keep it working for him long term in a tax-deferred investment. If he just puts it in the bank the IRS will tax the lump sum gain but he doesn't want to send any more than absolutely necessary to Washington. Could he roll all of this into a tax deferred investment? What investment makes sense that would still generate long term appreciation? He is 56 and figures 5-10 years before he will need to start pulling some cash out.

I told him he should buy a NorCal pot farm. He thinks I am nutz.

[KFC911]

Originally Posted by Cajundaddy

What does the Pelican braintrust suggest here?

My brother is selling off one of his business ventures and thinks he will walk with around $200k after the dust settles. He doesn't need the cash right now ..

He needs to hook up with a bitness partner that could eliminate those capital gains....poof, gone!!! Have him PM me

[nota]

I think the investment has to be ''like kind'' per IRS rules
so no a no tax bond wouldNOT qualify if gain was an active biz vs passive bond

but if he has an other active biz investing the capital in that should qualify

my buddy was cashed out of his family [multi-national] biz
but avoided ALL tax by buying stock in the new merged CORP [like kind biz investment]

I would consult a tax att or IRS qualified advisor to be sure
as the rules change often and details matter

[Cajundaddy]

Details matter indeed. He is going to see his accountant but sometimes great ideas float in from this place. I still like the buy land > pot farm for him but...

[berettafan]

nowhere near the info required to get an answer of any value.

as a general concept I've always wondered why people are so terrified of paying LT cap gains rates (which is not necessarily what your bro is gonna pay) at 15%. cheapest damn tax out there. i'd be happy to pay it and get my money to do whatever the heck I want with it.

[Seahawk]

Originally Posted by berettafan

as a general concept I've always wondered why people are so terrified of paying LT cap gains rates (which is not necessarily what your bro is gonna pay) at 15%. cheapest damn tax out there. i'd be happy to pay it and get my money to do whatever the heck I want with it.

That is where I am on this. If the sale qualifies...so we are back to this:

Originally Posted by berettafan

nowhere near the info required to get an answer of any value.

If the sale of the BV qualifies, pay the 15% and skip.

[fintstone]

1030 exchange

[wdfifteen]

Never heard of a "1030" exchange.

[KFC911]

I thought they were for "real property", but I dunno if a " business venture" applies. There are LOTS of ways to use the system (particularly real estate laws) to avoud paying taxes....sure it's legal, but it's a tax avoidance scheme that most don't have . Those laws are designed for the wealthy imo....