As an auto dealer, selling your company can create significant wealth—but many owners are unprepared for the tax burden. Capital gains taxes, depreciation recapture, and state taxes can claim 20-40% of the sale price, leaving less for your family and future plans. Without proper preparation, this unexpected hit can erode your legacy.
Reduce Taxes with Smart Strategies
To protect your wealth, consider these approaches:
- Take Assets Out Early: Diversify your holdings while you still own the business to reduce the taxable portion of the sale.
- Leverage Opportunity Zones: Reinvest sale proceeds into Opportunity Zone projects to defer capital gains taxes and enter into potentially tax-free investments.
- Use Installment Sales: Spread payments over time to minimize your immediate tax liability.
- Explore Trusts: Charitable and annuity trusts, as well as gifting to children and grandchildren can reduce taxes and preserve wealth for future generations.
Plan Ahead to Secure Your Family’s Future
Start early by valuing your business, modeling tax scenarios, and diversifying your assets. A proactive approach ensures your family reaps the full benefit of the value you’ve built.
An optimized outcome for you, your family and the causes you care about, requires 2-3 years of planning on all 3 legs of your stool – business, personal (legal documents, structures, etc.) and financial. Miss any one of these legs and your “stool” is wobbly. At Twelve Points, we help business owners minimize taxes and build strategies for lasting financial security. Take action today to protect your legacy and close your wealth gap—your future depends on it.
Connect with the Twelve Points Business Advisors team today!