Charitible Remainder Trusts and Tax Free Foundations for Wealth Building & Asset Protection

After a lifetime of skillful acquisition using maximum leverage and aggressive income tax strategies, many real estate entrepreneurs and investors find themselves equity rich and basis poor. They face the paradox of being able to retire to a life of comfort and ease only if they’re willing to pay as much as half of their profits out in a variety of state and federal taxes of every description. But all is not lost. There still exists a way for a person to beat the system, and the beauty of it is, that the higher the tax rate, the better this works. Learn how with “how to Use Charitible Reminader Trusts and Tax Free Foundations for Wealth Building and Asset Protection”!

Any taxpayer at any age or income can set up a Charitable Remainder Trust (CRT).  Then they can designate cash and assets which may be contributed tax free to it.  All future income and appreciation of that property will be tax free and a deduction can be taken by the donor as an offset against current income taxes. A person doesn’t have to have one foot in the grave to enjoy these benefits.  Savvy high bracket celebrities, stock traders, leveraged buy-out sellers, oil and gas producers and real estate developers in their early 30s are discovering how giving means getting more in the end.

Under current regulations, when making gifts of appreciated property to a CRT, the donor, Fred and Fran,  would receive the following benefits:

1.  Elimination of any capital gains tax which would be imposed if the donor were to sell the property himself.   Suppose Fred and Fran placed their entire $1,000,000 portfolio into a CRT and, through an independent 3rd party broker or agent,  it immediately converted the real estate to $1,000,000 in cash.  For purposes of this illustration, we’ll assume that the rents received during the selling period paid for sales expenses, so that we can continue to work with a round million dollar figure.  The CRT would pay nothing on the sale proceeds.  Neither would Fred nor Fran.  This would save $280,000 in capital gains taxes as noted earlier that would have been due, leaving a full $1,000,000 in the CRT for investment, less any Alternate Minimum Taxes which might be imposed on the gains tax saving generated by their gift.

2.  An income tax deduction for their gifts into the CRT would be generated for Fred and Fran which would be based upon the discounted present value of a remainder interest of the property which would pass to their designated charity at their deaths.  This would further be reduced by the amount of any income received by them from the CRT during their lifetimes.

Order this book today to learn how and why to use Tax Free Charitable Remainder Trusts and Foundations

TABLE OF CONTENTS

• Introduction to Tax Free Charitable Remainder Trusts
• Tax Benefits of Charitable Remainder Trusts
• Charitable Remainder Annuity Trusts (CRAT)
• Charitable Net Income Remainder Unit Trusts (CRUT)
• Multiple Trustee Asset Protection Strategies
• Creative Contributions
• Multiple Donor Options
• Putting Your Business into a Tax Free CRT
• Valuation and Sale of CRT Asset Contributions
• Irrevocable Gifts and Wealth Preservation Insurance
• Donor’s Retirement Income Alternatives
• Income Tax Aspects of Accumulating CRT Income
• Mandatory Tax Forms and Reports
• Compounding Future Value of CRUTs Investment Yield
• Combination CRT and Medicaid Possibilities
• Private Foundations: How and Why They Should be Formed
• Appointing Your Heirs as Foundation Trustees
• How to Found Your Own Tax Free Foundation
• Qualifying for Tax Exemption under IRC Section 501(c)(3)
• Operating Your Personal Charitable Foundation
• Dealing With Unrelated Foundation Business Income
• Private Foundation Profit Centers
• Dealing With Government Regulations