Case Study: A $5 Million Business Sale, Single Owner, Age 50

Meet the Owner
A successful entrepreneur had spent decades building his company and sold his business for $5 million. But, like many business owners, he was facing a significant tax bill, with $1.2 million in capital gains taxes looming.

The Problem
Without a strategy in place, he would’ve had to pay $1.2 million in taxes all at once. That would have taken a big chunk out of his sale proceeds and left him with less than he hoped for.

The Game Plan
Here’s how we made sure he got the most out of his sale:

1. Tax-Free Account for Sale Proceeds
   Instead of paying taxes immediately, we helped him set up a tax-free account where he deposited his $5 million from the sale. This allowed him to grow the money without worrying about taxes eating into it right away.

2. Financing the Taxes
   Instead of paying the $1.2 million in taxes upfront, he used the plan to finance those taxes. That meant he didn’t have to dip into his sale proceeds to cover the bill.

3. Tax-Free Income for Life
   The tax-free account also gave him flexibility to access funds without worrying about taxes.

What Changed

• Big Tax Savings
  He was able to save $1.2 million in taxes. Instead of paying that all at once, it was handled through the plan, keeping more of his money intact.

• Wealth Growth
  With the plan in place, his $5 million would grow into $18 million over time, all thanks to the tax-free structure of the account.

• Secure Future
  With tax-free distributions and an added $6.2 million in after-tax income, he will enjoy a comfortable and secure retirement without the fear of losing money to taxes.

The Bottom Line
Thanks to this strategy, this business owner was able to:

• Save $1.2 million in taxes.

• Boost his future wealth to $18 million.

• Enjoy tax-free income for the rest of his life.

There are ways to keep more of your sale proceeds and reduce your tax burden after selling a business.

Interested? Schedule a 15-minute call to learn more.