A client of ours recently sold an auto service business for a price just north of $3MM. He heard about different financial investment strategies that offered tax solutions that most firms overlook or don’t know about. Because empiriKal partners specializes in alternative investment strategies, our client was delighted to learn about a customized tax-free strategy for qualified investors with an income or capital gains tax obligation upon selling real estate, securities, or a business.
After a thorough consultation, we offered our client a solution that would free him from the obligation of paying long-term capital gains tax on his business. We reinvested the pre-tax proceeds of the sale into a diversified Qualified Opportunity Zone (QOZ) strategy that’s projected to offer 13% annual cash flow and a forecasted 3.6X real return. The investment is tax-free and 100% liquid after ten years.
To illustrate how Qualified Opportunity Zones offer tax-free solutions, empiriKal partners’ Chief Investment Officer, Erick Schenkhuizen, explained, “We have multiple strategies to deploy. Using a QOZ strategy offers tax deferment and mitigation on the sale of stocks, real estate, or a business.” He stated that QOZs are a result of Trump’s Tax Cuts and Jobs Act, and “If the client has a holding period of 10 years, the sale of a business or capital asset can be tax-free.”
When asked about what QOZs he used, Shenkhuizen said empiriKal partners, as a firm, has access to several great projects. He explained that the S2K QOZ fund has had a compelling story since Steve Kantor founded it. “Kantor brings decades of experience and expertise as well as a proven track record of success.”
OK, S2K’s founder is great, but what is so special about the fund itself? Schenkhuizen answered, “Pendry, the hotel being constructed in Tampa, is on the higher end… and I freaking love it from an investment standpoint. The fund’s performance is driven by its geography. The location is great, so it has been able to deliver a high internal rate of return.”
If you want to learn more about Qualified Opportunity Zones or S2K’s Pendry Fund, I suggest starting with S2K’s website, TRD Tampa Opportunity LLC . You can get a brief overview and request more information on the Pendry construction project there.
Qualified Opportunity Zone funds provide a tax mitigation strategy that will not be available forever. In addition, while offering a complete portfolio, empiriKal partners utilizes several other tax mitigation strategies to meet a qualified investor’s tax-favored goals.
In conclusion, if you’re in the process of selling your business, real estate, or investment securities and you’re wondering what to do about taxes, feel free to reach out to me. We will do a thorough consultation and offer you a customized solution that will help you preserve and grow your hard-earned money – tax-free.
If you already have an investment advisor, congratulations. However, if you’d like to learn more about what investment advisors do for their clients, please contact me at empiriKalpartners.com for an individual assessment.
Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Past performance does not guarantee future results. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your situation. The opinions expressed and the content provided are for general information. This is not a solicitation for the purchase or sale of any security.
