Hi, I’m Mark Schafer with The Thomas Duke Company. Today, I want to talk about an important topic for property owners: generational wealth planning and the tax considerations that come with it. Recently, while meeting with the owner of Progressive Metal Forming, we had a conversation that touched on a crucial decision many property owners face—whether to lease or sell their property. This discussion reminded me of a valuable conversation I had with a CPA about how to strategically plan for the future.
When thinking about passing on property to the next generation, a lot of questions come up. One key area is how to structure the entity that holds the real estate asset to minimize the tax impact when the property changes hands. The CPA I spoke with explained that there are smart ways to structure these entities to take advantage of tax benefits, reducing the cost basis significantly upon the passing of the property owner. This can be a fantastic strategy for generational wealth planning, helping families keep more of their hard-earned assets and ensuring a smoother transition.
For many property owners, the idea of planning for the future can feel overwhelming, especially when it comes to taxes. But with the right approach, you can set up your real estate assets to benefit your family for generations to come. By structuring the ownership entity correctly, you can lower the cost basis, which means less tax liability when the property is eventually sold or transferred.
This isn’t just about saving money—it’s about preserving wealth and providing financial stability for future generations. It’s a fantastic opportunity that many property owners don’t even realize is available to them. And the best part? It doesn’t have to be complicated. With the right guidance, you can take advantage of these strategies and make a big difference in your family’s financial future.
During my meeting at Progressive Metal Forming, the owner was weighing the benefits of leasing the property versus selling it outright. This is a common question many property owners have. On one hand, leasing can provide steady income and allow the owner to retain control of the property. On the other hand, selling might seem attractive, especially in a hot market, or if the owner is looking to cash out and reinvest elsewhere.
But it’s not always a straightforward decision. This is where tax considerations come into play. Depending on how the property is structured and the owner’s long-term goals, one option might offer more tax advantages than the other. That’s why it’s so important to consult with professionals who understand both the real estate market and the complex world of tax planning.
If you’re like many property owners, you might be wondering how to best set up your assets for the future. Whether you’re considering leasing, selling, or just want to learn more about how to minimize your tax burden, we’re here to help. We can connect you with trusted CPAs and other professionals who specialize in generational wealth planning, so you can move forward with confidence.
Don’t let the complexities of tax planning stop you from making the best decisions for your property and your family’s future. Reach out to our team at The Thomas Duke Company, and let’s talk about how we can help you navigate these important decisions. You can contact me at mschafer@thomasduke.com or call (248) 891-1990.
