Case Study
Luxury Private Home

Even the sale of a primary or secondary residence can result in a large, unexpected tax burden—especially in high-value markets like California. After the homeowner exclusion is applied, sellers may still face substantial capital gains taxes, state income tax, and the net investment income surtax. Traditional strategies offer little relief for non-investment property owners, limiting after-sale liquidity and future financial planning options.

The TaxWealth Approach

TaxWealth provides a compliant strategy that allows high-value homeowners to unlock more liquidity at closing—without triggering immediate tax payment or requiring reinvestment. By restructuring the sale to shift the timing of federal and state tax obligations, clients retain more of their gains and gain control over how and when their capital is used.

The Problem

A homeowner sold a luxury property in California for $2,900,000. Under a conventional sale, the combined tax burden was $309,488, reducing their net proceeds to $1,187,512. Despite the homeowner exclusion, taxes still claimed a meaningful share—limiting flexibility and restricting capital use post-sale.

The Solution

Using TaxWealth’s planning strategy, the homeowner legally delayed tax obligations and received a net distribution of $1,321,618. After setting aside funds for the future liability, they retained $1,267,733 in usable capital—a 6.8% increase in after-tax proceeds compared to a conventional transaction.

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Our proven approach has helped business owners, real estate investors, and high-net-worth individuals increase their profits by 20-40% through tailored tax strategies. Don’t leave money on the table—discover your tax-saving potential today!