Go to Jeff Salisbury LWGate Home Page.From: Jeff Salisbury <jeff.salisbury@xmission.com>
Subject: Re: HIDE CAPITAL GAINS
Date: Sat, 25 Dec 1999 22:40:31 -0700
Next Article (by Date): RE: Fidelity U-Plan "Harold R. Justice"
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BOB FORD wrote: > > I am not a tax pro but I don't think it is > possible to hide any Capital Gains. > It is my understanding that if you sell > a capital asset at a profit, it must be > reported on your income tax and > there are no exceptions. You must > also report capital losses. > > Someone let me know if that is > incorrect. > > BOB FORD > BOB_FORD@COMPUSERVE.COM > Bob, You are correct in that you can't "hide" any capital gains other than the manner Rich explained. However, in my previous posting to your estate tax question, I talked about a private annuity. It turns out that this same private annuity can be used to defer (not avoid) capital gains taxes. The value of defering these taxes are that you can in effect hang on to the cash that you would otherwise be paying in taxes and benefit from the growth of this cash. If effect, you get to spread the payment of the taxes out over many years -- you are getting a zero interest loan from Uncle Sam. Combine this with the favorable estate planning characteristics of the Private Annuity and this can be a terrific planning tool under the proper circumstances. Jeff - -
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