As we approach the end of the year, the clock is ticking for CPAs and tax professionals to ensure their clients maximize their tax advantages before the deadline. Fortitude is here to guide you through effective tax-advantaged investments that not only benefit your clients but also strengthen your advisory services. This is the perfect time for you to reach out to us.

Understanding the Importance of Timely Action

As tax deadlines loom, high net worth individuals need your assistance to navigate tax mitigation strategies. By acting now, you can help your clients take advantage of significant tax-saving opportunities, benefiting both their financial standing and your practice. Please note that our strategies are specifically designed for accredited investors.

Tax-Advantaged Investment Options

Qualified Opportunity Zone Funds

Investing in Qualified Opportunity Zones offers considerable tax benefits, including deferral and potential elimination of capital gains taxes. Encourage your high-net-worth clients to consider these funds, as they can reinvest capital gains into these designated areas while enjoying tax incentives. Highlight how these investments contribute to community development alongside substantial tax advantages.

Oil & Gas Investments

Oil and gas investments can provide various tax benefits, including significant deductions that can offset ordinary income. The intangible drilling costs (IDC) allow these expenses to be deducted in the year they are incurred, providing immediate tax relief. This investment strategy can be particularly appealing for those seeking to diversify their portfolios while maximizing tax benefits.

Case Study: IDC Against This Year's Earnings: One of our accredited investor clients recently faced a substantial tax bill due to significant earnings in their portfolio. By investing in a strategic oil and gas project, they were able to claim IDC totaling $300,000. This sizable deduction helped offset their current year's earnings, reducing their taxable income significantly. As a result, they not only minimized their tax liability but improved their overall cash flow, enabling further investment opportunities.

Roth Conversion Strategies

With the right planning, Roth conversions can serve as a powerful tax mitigation strategy. Development projects that allow for discounts and accelerated depreciation can create excellent opportunities for converting traditional retirement accounts into Roth accounts. This strategy not only ensures tax-free growth but also provides tax-free withdrawals in retirement.

Cost Segregation Studies

Cost segregation studies enable property owners to accelerate depreciation schedules, allowing substantial tax savings in the early years of property ownership. This method is especially effective for commercial real estate and can be an essential strategy to discuss with your clients.

Urgency and Action

As the year ends, now is the time to engage your clients in conversations regarding these strategies. The deadline for many tax-saving opportunities is fast approaching, and action must be taken promptly.

At Fortitude, we specialize in tax-advantaged investments tailored for high-net-worth clients. For more information on Qualified Opportunity Zone Funds, oil and gas investments, Roth conversions, and cost segregation studies, explore the rest of our website.

Conclusion

Don't let your clients miss out on vital tax-mitigation opportunities as the year closes. Contact Fortitude today to discuss how we can help you implement these strategies effectively. Please remember that our offerings are specifically for accredited investors. Together, we can ensure your clients receive the maximum tax advantages available.

Explore our site to learn how to transition from active management to passive income and discover your own “Life After Landlord.” Feel free to check out all of our resources here. 

Important Disclosures:
*This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”).

*There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal.

*DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million exclusive of primary residence, and/or possessing an annual income of over $200,000, or $300,000 with a spouse and expects the same or greater for the current year) and accredited entities (generally described as an entity owned entirely by accredited investors and/or owning investments in excess of $5 million). Please check with a qualified CPA or attorney to determine if you are accredited.

*Past performance is no guarantee of future results. *Diversification does not guarantee returns and does not protect against loss.

*Potential cash flow, potential returns and potential appreciation are not guaranteed.