What is a CAPS Trust?
CAPS Trust - Commercial Asset Protection Structure Trust
A business or real estate sale structure that allows a Seller to:
Defer taxes on Capital Gains when a business or real estate is sold.
Protect assets under the shelter of a Trust the same as a Seller would for estate planning.
Utilize Installment Sale Tax Law and a Trust to defer taxes on Capital Gains.
Capital Gains and taxes are deferred for up to 20 years. The CAPS Trust can be used for ANY type of business sale or real estate sale. A CAPS Trust puts more money in the Seller’s pocket – up to 45% more after 10 years based on a 6% rate of return.
Advantages over a traditional Asset Sale or Stock Sale of a business:
Deferral of Taxes. See Example of how it is better to defer taxes.
Seller can take as much or as little cash out at closing or during the 20 year payback period and only pay taxes on what he/she takes out.
Advantages over a 1031 exchange:
1. No requirement to identify the real estate to be acquired within a specified time-period.
2. Can be done with any type of real estate in the United States, including primary residences and other real estate normally excluded from a 1031 exchange.
Minimum transaction size $2 Million