Background
Experienced Corporate Executive looking to simply his financial affairs as he goes into retirement. He had accumulated low basis concentrated stock position through his employer’s equity compensation program. He was also actively managing a small portfolio residential real estate property. He needed tax efficient solutions to diversify the concentrated stock and simplify his real estate portfolio.
Callan Capital Solutions
- Contribute concentrated stock into an Exchange Fund and receive shares of a pool of securities tracking a common benchmark. The fund facilitates the diversification of a single stock without realizing any gains.
- Engaging in a 1031 exchange, a provision allowing for the deferral of capital gains taxes upon the sale of existing real estate property. Utilizing a Delaware Statutory Trust (DST), move from active to passive management of real estate holdings.
- Plan to execute a subsequent 721 exchange. Your DST property is exchanged for shares of a Real Estate Investment Trust (REIT).
Results
- Diversify concentrated stock without realizing gains.
- Simplify and diversify real estate holdings without realizing gains.
- Reduce overall risk in portfolio.
Disclaimer:
Our case studies are intended for illustrative purposes only and meant to provide an example of Callan Capital’s process and methodology. They represent specific client’s experiences based on their specific facts and circumstances with some details excluded and or changed to protect the anonymity of the client. An individual’s experience may vary based on their unique circumstances. Similar results cannot be guaranteed in comparable situations. This case study should not be interpreted as a testimonial or endorsement of Callan Capital, and it is impossible to determine whether a specific client would have been satisfied with their results.