Tax Reduction Services


1LessTax Pay No Tax Alternatives - Definitions - Scenario

When Planning, Transferring and Selling/Divesting Any Property or Business

Summaries of Alternatives For Diversification While Saving Tax Expense



Reduce Tax Burden              Maintain & Increase Wealth            Protect Income      

Background includes 15 years as a commercial contractor constructing buildings and agriculture business facilities in the Midwest. 25 years as a business broker and financial advisor involved in assisting business and property owners to sell, merge or acquire (mergers and acquisitions) and fund (investment banking). Consistently had challenges to transfer ownership and maintain wealth. The end goal challenge generally included an efficient tax and estate plan. Not a CPA but worked with CPAs and tax attorneys to plan. A CPA and attorney are much like a doctor. Unless one can tell them where it hurts they generally volunteer little. What CPAs, tax advisors and attorneys tell us is within the scope of their practice that generally does not work extensively with property transfer tax code. Experience here is with transferring property and keeping our money, i.e. saving tax money within the tax code. A CPA/tax advisor generally knows their client’s tax details. We can be an assistant to tax advisors, real estate professionals and a client to minimize taxes when it is a goal.

Real Estate & Asset Titling   Exit Strategies with Tax Deferral, Deduction & Reduction

Can Involve Estate Plan   The Final Life Plan with Legacy & Beneficiary Consideration

When selling/divesting any type assets and properties one has several tax obligation choices.

Pay the tax.  When selling or relinquishing property, besides gain tax, watch for recapture of depreciation, past accelerated depreciation and cost segregation practices. Thank you from the IRS and all of us. CPA is recommended. Or,

14 Tax Action Alternatives

  1. **Internal Revenue Code (IRC) §121 allows two year plus owner occupancy of residence a $250,000 gain exclusion. If married the spouse can add another $250,000 exclusion for a maximum of $500,000 gain exclusion. Over the $250k/$500k gain exclusion may consider the Energy Rehab Exchange or Acquisition for the balance of the gain.

  2. IRC §1031 Tax Deferred Exchange As of 2018, relinquished real property (real estate) only. IRC §1245 (personal property) now not exchanged. Exchange Accommodator/Intermediary is necessary. Guided by time limit, replacement property and other significant rules. CPA is recommended.

  3. IRC §1033 is for Government acquisition of real estate by eminent domain. Exchange Accommodator/Intermediary is not necessary. Guided by two year time limit and other significant rules. CPA is recommended.

  4. IRC §721 Known as the UPREIT. For an Real Estate Investment Trust acquisition, one  1031 exchanges into a qualified replacement property then into the REIT in an unspecified time. The transfer into the REIT converts to REIT shares that may be sold in partial with deferred tax due.

  5. IRC §469 Exclusion (passive investments) Energy Rehab Exchange or Acquisition (the most advantageous tax code for any property including ordinary income and most unknown) more detail can follow (many codes). Potential 100% immediate deduction of any proceeds. Possible IRC §1033 out to a qualified replacement property. CPA is recommended.

  6. *IRC §1245 new or rehab special building acquisition Generally Agriculture buildings. (advantageous tax code opportunity for any property including ordinary income)  IRC § 179 (168) new/used equipment Potential 100% immediate deduction of any proceeds. CPA is recommended.

  7. IRC §453 Installment Contract Sale (for some property one can delay paying capital gains, not always depreciation recapture tax) over a period of time. Any amount acceptable as efficient to parties. Attorney and CPA recommended.

  8. IRC §453 & other code; Third Party Non-profit Charitable Sale for immediate tax relief with insured deferred proceeds or insured income stream. For all property-assets. Favored at preventing beneficiary conflict or heirs who are challenged handling money. Can be as a version of a reverse mortgage or sale/leaseback with tax advantages. Generally for property-asset holders $100k-$20M+/-. CPA is recommended.   

  9. Monetized IRC §453 Contract Sale for most property-can reinvest in anything or keep proceeds. Depreciation recapture is a challenge. $1M+ minimum or acceptable to owner. Specialized Tax Attorney and CPA recommended.

  10. Sales Proceeds Trust Monetized IRC §453 Contract Sale requires third party trustee-for most property. Must reinvest in business investment (the goal is to place proceeds into insurance securities products continuing inflexibility). Depreciation recapture is a challenge. $1M+ or acceptable to owner. Specialized Tax Attorney and CPA are recommended.

  11. Individual Retirement Account (IRA-ROTH IRA, SEP, Individual 401k-ROTH 401k) Move Qualified Retirement Plan into real and personal property. Energy rehab deferral and §1031 tax deferral has death step-up valuation and estate asset advantages). CPA is recommended.

  12. Opportunity Zones New program allow one to defer, reduce and eliminate capital gains taxes. Invests in areas where locations are deemed challenged for business growth. May be in a fund. 10 years to maximize deferral, CPA is recommended.

  13. IRC §1202 (& §1045) QSBC-Qualified Business Stock Sale Creating Small Business Jobs Act of 2010 increased the gain exclusion to 100% of the total gain for all QSBS issued after September 27, 2010. & $10M or 10 times the aggregate adjusted QSBS limit. IRC §1045 potential. Specialized Attorney and CPA recommended.  ABA article

  14. Self-insurance and real estate easement plans involvement. For Affluent, Married $22.4M+, Individual $11.2M+, or acceptable to owner. Specialized Estate/Tax Attorney and CPA are recommended.

*Note: A Section 1245 "storage facility" differs from a non-Section 1245 building in that the latter may contain a work area in addition to its storage function and may reasonably be adapted to other uses. Qualifying Section 1245 structures cannot contain work areas except as necessary to care for the livestock, plants or their produce or to maintain the structure and equipment. For example, having a cash register inside a greenhouse for handling sales to the public would disqualify the structure as a Section 1245 single purpose structure.

**Note: IRC Section 121 $250k/$500k gain exclusion may choose to use the Energy rehab exchange or acquisition for the balance of the gain.

By the end of 2019, over $15 trillion worth of inheritance will pass through the probate courts in America. The #1 asset sold first is the real estate. We inform and can assist for efficient transfer of asset ownership.

Currently three trillion $ in annuities in USA. 95% are left to heirs. Gain is taxed ordinary income (now 37% top bracket) plus any state/city tax. Spouse is not excluded. Consider energy rehab acquisition.

Your personal and business CPA/Tax Adviser is always recommended for your primary tax consultant.


Recommend an experienced tax and legal advisor who can know you and your specific situation, local to your property area and jurisdiction. If one does not have a personal business legal adviser we can recommend attorneys in all 50 States.

For one who qualifies with real property real estate we have replacement properties for 1031 tax deferral. Some are rehab commercial property. Some are new 15-20-year absolute leased high-end income properties leased to tenants with positive inflation and recession resistance. This is accomplished by location and type of business.

Rehab (rehabilitated, improved or reworked properties generally have the option or plan to divest within two-three years rolling into another wealth building property. They may or may not have an option for deferred income.

The energy rehab properties are with known management and rework operators. As with any venture recommend new associates have references for experience and integrity. For energy rehab my choice is a CPA firm that has a business end with consulting and actual rehab projects they manage. Former Deloitte CPAs, they have decades experience in oil & gas operations and taxation. This can be the resource for clients and CPAs to advantage the most prolific tax advantages in the US tax code. Their experience includes years of alternatives to be tax efficient.

The energy rehab property minimum entry income properties are $100k and more. The property is producing oil & gas. The goal is to buy low, improve the production and income rolling into another or 1031 out to different qualified property. One receives recorded ownership document allowing divesture when desired with a two-three divest year goal. There can be sheltered income options. Each associate has their personal tax plan and goals. One can build with one’s own tax protected annuity with periodical tax-deductible contributions. Up to $5M or more of acquiring an energy rehab property one potentially deducts 100% of any income, gain, depreciation recapture, investment or ordinary, personal, real estate or business asset proceeds with a 15 year loss carry forward.

We include a non-disclosure confidentiality document for doing business. We are searching for long term integrity associates with common goals.  Look forward to knowing you and your goals.

Confidentiality-Non Disclosure Agreement – Ken Wheeler Jr. Sample Tax Scenario


Funding of property or asset (BASIS):     $200,000.00


Divest or sell for:                          $300,000.00

Gain or Profit                                $100,000.00

 TAXABLE         $100,000.00

For an energy rehab $100,000.00 is the prime amount to deduct so is the first amount to consider to transfer to the energy rehab property.

One does not have to transfer the complete amount as in a 1031 qualified exchange or other defer/deduct methods.

The energy rehab property is real property so when one divests one can choose any other business property to defer tax with the 1031 rule or refund into another energy rehab property with or without basis, deducting all.

With the right people one can have as an energy property annuity to receive and deduct most income and proceeds from any transaction.

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Certified Probate Real Estate Specialist

Ken Wheeler Jr. Mobile (515) 238-9266

Business Entry-Management-Exit Plans - BEME

Tax Reduction  - Legal - Estate - Tax - Exit Strategies & Planning

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Your Own Tax Advantaged Opportunity Zones

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5654 Marquesas Circle    Sarasota, FL 34233

Phone (941) 227-3024  -  800-333-0801 -  Fax: 888-898-6009

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