Are you aware that you could sell a business or a highly valuable asset and avoid taxes on the business sale?
It is absolutely possible with an irrevocable Blockchain Trust. This solution can be a great strategy if you are looking for 100% legal ways to avoid capital gains tax on a business sale or asset sale.
Paying taxes can be draining, so many successful business moguls have figured out ways of avoiding taxes while selling their businesses. It might look usual to pay taxes since you are making huge profits; nonetheless, if you take a break to calculate the amounts spent on taxes, you might see the need to drastically reduce money spent on taxes or totally stop it.
Investing money realized from saving taxes can push your business towards making more profits than usual; hence one way to avoid paying capital gain taxes is through an irrevocable Blockchain Trust or a Charitable Remainder Trust.
What Is a Charitable Remainder Trust (CRT)?
From the name, it’s obvious that it has to do with ‘Charity’. A charitable remainder trust is an underutilized philanthropic tool that enables people to pursue their philanthropic goals while generating tax-free income. It is an irrevocable trust that allows individuals to donate assets to a charitable organization and earn income for a stipulated period or for life. Now you are probably wondering how it works; stay with me.
Firstly, the donor donates assets to the trust. Assets donated could be cash, stocks, real estate or private businesses. After the donation, the trustor and the charitable organization reach an agreement that would enable the trustor or any other named beneficiary to receive an income stream from the trust for a specific term of years or for life. At the end of the trust, the charitable organization receives the remaining assets of the trust. Income could be generated annually, semi-annually, or monthly depending on the agreement. The trust makes the trustor eligible for a partial tax deduction for the money donated to the trust, which can grow tax-free due to investments. This deduction depends on the type of the charitable remainder trust, interest rates set by the Internal Revenue Service (IRS) which is determined on assumptions regarding the rate of growth of the trust assets.
Types of Charitable Remainder Trust
There are two main types of Charitable Remainder Trust: Charitable Remainder Annuity Trust and Charitable Unitrust.
Charitable Remainder Annuity Trust: From its name, a fixed annuity is distributed to non-charitable beneficiaries each year. The value of the assets must range from 5%-50%. This trust allows the donor to receive the tax deduction and ensures a steady flow of income while donating to charities. The CRAT gives no room for additional contributions of assets.
Charitable Remainder Unitrust: The Charitable Remainder Unitrust distributes a fixed percentage based on the balance of the trust assets. Unlike the CRAT, the value of trust assets is valued each year. The Charitable Remainder Unitrust can generate for a beneficiary and allow the donor to avoid paying capital gains taxes on assets donated to the trust. It also allows for additional contributions of assets which in turn would yield more income distributions and the final charitable donation.
CRTs are irrevocable. It means that upon the creation of the trust, the trustor denounces all rights of ownership of assets once they are donated to the trust, and the terms of the trust can neither be terminated nor altered. Using any of the types of charitable remainder trusts will provide the client with a partial tax deduction and will provide the non-charitable beneficiaries (your children for example) with a steady flow of income and then pass the remainder to the charitable organization.
Charitable Remainder Trust vs the irrevocable Blockchain Trust
The irrevocable Blockchain Trust functions in almost the same way as the charitable remainder trust. The only differentiating yet most powerful factor is that the decentralized Blockchain Trust provides global solutions where your business can be operated without any circumstantial limits.
The decentralized and irrevocable Blockchain Trust is tax-free, paperless, secure, and transparent since all transactions are recorded on the blockchain. Above all, the Blockchain Trust is completely decentralized and cannot be manipulated or controlled by any institution or Government whatsoever. This makes it a better option to the charitable remainder trust since its more cost effective, faster, more reliable and can be 100% controlled by you.
Our proprietary irrevocable Blockchain Trust operates in much the same way as a traditional charitable trust…..but is far more powerful and has much greater reach. Being decentralized on the blockchain provides a wholly global solution, operational advantages and the removal of all jurisdictional limits. Free from all institutional control and outside of governmental reach or oversight.
With all transactions recorded on the blockchain it’s a paperless solution making it more cost effective, more secure, and more transparent than conventional solutions. In fact, an irrevocable Blockchain Trust is the fastest and most reliable way for you to sell your business tax free. With the added advantage that your regular taxes can be off-set against the sale and potentially reduced to zero for this financial year.
Our irrevocable Blockchain Trust is the solution that you have been looking for.
A straightforward, fully global, elegantly structured and completely legal way for you to sell your business while ensuring that…
Your employees remain secure.
Your business is sold tax free.
Your annual tax liabilities are reduced.
You and your family benefit from an income for life.
Your hard-fought legacy lives on.
And for you personally? Today can be the day that you start to live the rest of your dream.
If you are considering selling your business, or real estate, or another highly valuable asset, then an irrevocable Blockchain Trust could help you avoid capital gains tax and provide you (or your children) with a fantastic income stream, while minimizing or eliminating your taxes altogether!
Take the first step to a brighter future. Contact us today for a free consultation and see how an irrevocable blockchain trust will help you to avoid paying taxes on a business sale with our proven strategies, maximizing your profits.