Income Tax Reduction Strategies

We saved our client millions in capital gains taxes on the sale of low basis-appreciated stock through a combination of tax planning techniques.

Client Profile
Our client, the founder of a successful Internet company, was planning to sell $10 million of low-basis stock, which would ordinarily result in a $2.5 million capital gains tax. The client sought counsel on ways to minimize the tax bite.

The Fishman Associates Solution
We designed a multi-tiered structure utilizing a Family Limited Partnership and a Charitable Remainder Uni-Trust (NIMCRUT) that allowed for a tax-exempt sale of the client's stock. By adding the partnership structure to the charitable trust arrangement, the annual earnings could compound untaxed to be distributed at the client's retirement age, thereby securing his retirement income.