We help business owners just like you save an average of 40% on their annual tax bill.
Raleigh Wealth Solutions has developed and refined a process that combines financial planning and tax planning into a single step. For businesses making over $750K, we may be able to help you keep more of what you’ve earned come tax time — and beyond. Find out how by claiming a complimentary second opinion on your business’ situation.
Tax code is Always Changing Is your business keeping up with the times?
We’ve spent the last 10 years studying and traveling the country to vet and interview potential partners and product vendors. That research has uniquely empowered Raleigh Wealth Solutions’ advisors to offer a diverse suite of tax-efficient strategies, including:
Roth IRA Conversions for 5-20¢ on the Dollar
Business Exit Strategies
Cash Balance Plans
Fee Simple
Cost Segregation
Qualified Charitable Disributions
Medical Expense Reimbursement Plans
Captive Accounts
401(k) INTEGRATION
IRMAA Tax Review
Not sure which of these strategies might benefit you?
That's ok. That's what we're here for!
Tax strategies that are anything but business as usual.
Our comprehensive approach has helped a wide array of entrepreneurs in our community keep more of dollars in their businesses. Here are three hypothetical case studies showing the impact these strategies have made for our clients:
Case Study #1:
Mr. AProprietor Business Sale
Background
Business sale: $1.8 million
Capital gains tax: 29.05% combined
Tax shrinkage: $522,900
Future financial security: $1,277,100
Primary strategies
- Deferred Sales Trust
- Gain on the entire sale deferred indefinitely
- Entire $1.8 million available for investment
- Funds are available for traditional as well as business investment
- Tax-sheltered funds being used to create a tax-free self-completing income plan
Impact
A dividend income stream was established to fund a leveraged life insurance retirement plan (LIRP) for five years, which will provide a tax-free income of $65,000 starting at age 65 for the rest of Mr. A’s life as well as a six-figure tax-free benefit to his family at passing.
Case Study #2:
Mr. & Mrs. TApplying Tax Code to Financial Planning for Retirees
Objectives
- Reduce future income tax liability through Roth conversion
- Free an investment portfolio from significant capital gains and create a long-term care funding option
Primary strategies
- Oil & Gas (O&G) valuation discount for Roth conversion
- Opportunity Zone (OZ) $900,000 investment account with $518,000 long-term capital gains (LTCG), $383,000 basis
- Fixed index annuity (FIA) with long-term care (LTC) doubler
Impact
Roth conversion: $1.3 million IRA investment, converted at $650,000 after valuation discount. $650,000 1099 income reduced by 50% to $325,000 through an Land Conservation Easement (LCE) contribution at 5:1. Total Roth conversion cost: $66,000 tax plus $65,000 LCE equaling $131,000 on $1.3 million (or .101/10 cents on the dollar).
OZ: $518,000 OZ produces a 6% tax-free income ($31,000) for 10 years as well as appreciation. All proceeds are tax free. Gain is deferred until the end of 2026; the OZ project will distribute funds necessary to satisfy a discounted LTCG liability.
FIA with LTC doubler: $383,000 basis was used to fund FIA, which defers tax on any growth until funds are distributed. In addition, the account provides a robust joint life income, which doubles when necessary to cover a qualifying long-term care event.
Case Study #3:
Mr. & Mrs. RApplying Tax Code to Financial Planning for Retirees
Objectives
- Reduce future income tax liability through Roth conversions
- Defer significant LTCG from property sales totaling $400,000 using an OZ
- Establish an FIA with LTC benefits using a Roth IRA
Primary strategies
2021
- $750,000 Roth conversion plus a $400,000 LTCG from the sale of rental properties
2022
- O&G valuation discount for $500,000 Roth conversion, converted at $250,000 after valuation discount
Impact
2021
OZ was employed to defer the $400,000 gain, turning it into a 10-year tax-free investment. The LTCG tax will be satisfied by a disbursement from the OZ when the tax is due (2027). The Roth conversion generated $750,000 in ordinary income via a 1099. The actual tax bill was reduced by 50% by making a $75,000 LCE (5:1) contribution, which generated an income tax deduction of $375,000. Total conversion cost: $80,000 tax and $75,000 LCE equaling $155,000 on $750,000 (or .207/20.7 cents on the dollar).
$850,000 of the converted funds were placed into a Roth FIA to provide significant tax-free joint life income, LTC doubler and legacy benefits.
2022
$250,000 income reduced by 50% to $125,000 through an LCE contribution at 5:1. Total conversion cost: $19,000 tax plus $25,000 LCE equaling $44,000 on $500,000 (or .088/8.8 cents on the dollar).
The Professional's Professional
Wondering how you can offer this type of service to your clients or professional group? We can help with that as well.
The content on this website is intended to provide general information and educational materials related to taxes and tax planning. However, it is important to note that we are not Certified Public Accountants (CPA) or tax professionals.
While we strive to provide accurate and up-to-date information, we strongly advise consulting with a qualified CPA or tax professional before making any financial or tax-related decisions. The information provided on this website is not a substitute for professional tax advice, and it should not be relied upon as such.
Our practice specializes in providing guidance on personal finance, investments, and wealth management. Our goal is to help individuals make informed financial decisions that align with their goals and circumstances. When discussing tax-related topics, we aim to provide general explanations and insights based on our experience and knowledge in the field.
It is crucial to understand that tax laws and regulations are subject to frequent changes and can vary based on individual circumstances, jurisdiction, and other factors. Therefore, the information provided on this website may not be applicable or accurate for every situation.
By accessing or using the information on this website, you acknowledge and agree that any reliance on the content is at your own risk. We disclaim any responsibility for errors, omissions, or inaccuracies in the information presented. Additionally, our firm cannot be held liable for any actions taken based on the information provided on this website.
Always consult with a qualified tax professional or CPA to obtain personalized advice that suits your specific financial and tax needs. They can provide guidance tailored to your individual circumstances, ensuring compliance with applicable laws and regulations.
If you have any questions or concerns about the information presented on this website, please contact us for clarification.
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