Selling a privately held business and personal residence can trigger federal and state capital gains, depreciation recapture, and net investment surtaxes that consume a large share of the proceeds. This is what a full pre-sale analysis changed for one South Carolina seller.
Selling a valuable asset in a high-tax situation can leave a seller with far less than the headline price. Federal and state capital gains, depreciation recapture, and the net investment income surtax stack up quickly. A pre-sale analysis looks at the whole picture before the transaction closes, when the outcome can still be changed.
A business owner was selling a privately held business and personal residence in South Carolina in the $2.5M–$5M range. On a conventional sale, the projected combined federal and state tax fell in the $1M–$2.5M range, a large share of the transaction lost to tax, cutting the seller's liquidity and reinvestment options.
After a full pre-sale analysis, TaxWealth structured the transaction so the seller kept substantially more of the proceeds, about 84% more usable capital than a conventional sale would have produced. That capital stayed available to the seller to reinvest and build on.
Our approach helps business owners, real estate investors, and high-net-worth individuals keep more of the proceeds from a major sale through tailored tax strategies. Don’t leave money on the table, discover your tax-saving potential today!
Whether you’re exploring options, seeking a second opinion, or ready to act, schedule a confidential consult or partner discussion today.