Skip to content
Close
SEARCH
PHONE: (561) 453-1441
Request an Intro
PHONE: (561) 453-1441
Request an Intro
default

Case Study

How we helped a young successful
entrepreneur save income and estate taxes
while addressing his philanthropic life goals.

Subject

Concentrated position in an early-stage private growth company
(~92MM 409A valuation).

Objectives

  • Tax-efficient diversification and de-risking of the portfolio
  • Provide financial security for immediate and extended family
  • Establish a structured, lasting charitable giving program

Process

  • LTax Team: analyzed the current tax position and forecast outcomes across liquidation scenarios and proposed IRS code changes
  • Wealth Planning Team: compiled all personal and financial data into a comprehensive baseline plan, the foundation for every strategy decision
  • Estate & Trust Team: designed a multigenerational estate plan to preserve family values and mitigate estate tax

Strategy

  • Applied Section 1202 QSBS exemption to reduce capital gains
  • Stacked the exemption via multiple irrevocable family trusts
  • Established a Donor Advised Fund, with a path to a private foundation
  • Elected state pass-through entity tax (PTET) to reduce federal business income
  • Assessed Section 1045 rollover of gain into another QSBS company
  • Modeled relocation from a high-tax state with no Section 1202 conformity

Results

Client has structure and process around decision-making for exercised options and remaining ISOs. Funding of retirement and financial plan has been initiated. Portfolio risk has been significantly reduced.

Estimated tax savings: $437,179.00

LTax and Advanced Wealth Planning delivered a specific, actionable plan covering diversification, family security and philanthropy, combining QSBS stacking, a PTET election and a coordinated estate and charitable structure.

Potential estate and income tax savings: $22,319,485

LTax is a boutique tax firm emphasizing personalization, communication, and
initiative-taking responsiveness.

We take a consulting approach to tax preparation and planning, ensuring regular client communication and a personalized understanding of our clients’ needs. We tirelessly research tax mitigation strategies and develop actionable recommendations for the benefit of our clients.

 
Our Solutions
adam-v2-700

Adam Raschke, JD

Director, Tax Practice Lead

Request an Intro

Schedule your complimentary 30 minute discovery call so our team can learn about your goals and how we might be able to help. Prefer a phone call? Call us at (561) 453-1441.