I know of a park owner who has some very desirable parks in great locations. It’s a common scenario; his kids don’t want them and are “encouraging” him to sell them. He would like to but his accountant has advised him to hold onto them until a new president is elected and re-evaluate if the capital gains tax is lowered. Have you guys encountered this before? What do you say to the park owner?
The capital gains rate is over 28% and the chances in the future of lower rates like before of 15% is nearly impossible. The majority of voters (presently receiving some form of taxpayers money) which vote for people like Hillary or Sanders that will subjugate the producers to support the takers and even Trump is going to tax MORE people making more than $250,000. With the nation debt doubling in less than 6 years and presently in debt over $18,000,000,000,000 taxes are going up since the parasites have the votes and yes the upper middle class is screwed!!! People like Mr. Buffet has an army of legal consul to keep his taxes less than his secretaries. Yes, 1031’s are a good tax aversion temporarily but sometime the gains will be taxed. and the producers need to find ways to advert the taxation without representation. There are over 90 million able body workers without full time jobs and just noticed Wal-Mart is cutting 1,000 worker from HQ’s since they need to show stock holders some improved profits after raising wages to $9 an hour. Presently NOW is a fantastic time to sell with people falling over themselves trying to own parks and in our case they said name your price and they paid less than an eight cap on septic tanks and wells.
So this successful park owner is taking investment advice from his accountant? Tax advice - sure. But . . .
Who is really running the show? The ‘kids’ who’ve been shopping at the BMW store or the successful park owner.
Then come back to this board and lets solve the correct problem.
My point is find out what his pain point is and, like they say when signing, ‘PRESS HARD’.
A good tax attorney could show him how to structure the sale to minimize the tax impact. There are a number of ways to do that that would benefit everyone.
Owner carries the note would be a great way for him to avoid the big capital gain in one year. You, as an investor, can really help him on this!