So what is CPS? CPS (Capital Preservation Strategy) is a sophisticated and extremely effective way to mitigate capital gains upon the sale of any highly appreciated asset with a sales price of $500,000 to $500,000,000 or more. These assets include but are not limited to businesses, real-estate (commercial or residential), where they can utilize the idea of qualified opportunity zones to defer paying such capital gains and eliminate new gains on their investments, as well as assets including precious stones or metals, artwork and other collectables. The only asset that does not qualify is a listed stock on an exchange.
A seller of a business or real estate (or any form of highly appreciated asset) is faced with a very real and expensive problem when he/she has no desire to purchase another “like kind” asset or give away the asset through a charitable trust arrangement. Simply stated, the problem is that the capital gains and other taxes due upon the sale of the asset dramatically reduce the return upon the sale; more than most realize. The challenge we have as planners is to obtain the best tax result when a client is considering the sale of such an asset, when the capital gains tax issue is looming like a dark cloud.
In order to avoid a significant current capital gains tax hit, there are few solutions that do NOT require purchasing another “like kind” asset as in the case of a Section 1031 Exchange (or ‘1031 tax deffered exchange‘ as you may have heard it called) in real estate or in the case of the sale of a business. One can exercise a number of charitable giving strategies, giving away property to reduce or eliminate capital gains but for those who wish to sell a highly appreciated asset of any kind and keep the vast majority of the proceeds, there are very, VERY few solutions to the capital gains and associated taxes. We have what we are confident, is the very best solution available in the CPS program. Jay can set up a conference or webinar, then YOU can be the judge!
Double Diamond Financial, LLC
Jay Harris, Manager
2000 Wadsworth Blvd. #150
Lakewood, CO 80214
Office: 720-295-3040. Cell: 303-239-1234