Strategic Liquidation: Saving $500k Across Real Estate & Equities

The Challenge

A diversified investor wanted to rebalance their portfolio by liquidating a massive position in stocks and options, while also restructuring their real estate holdings. They feared a "double-hit" tax bill from both asset classes.

The Solution

We acted as the client's "Tax Architect" to synchronize these moves:

• Equity Optimization: We identified and utilized forgotten capital loss carryovers from prior years. This allowed the client to sell hundreds of thousands of dollars in stocks and options with zero net tax liability on the gains.

• Real Estate Tax Shield: For their property portfolio, we maximized the Section 121 Primary Residence Exclusion to shield equity from taxation.

• Tax-Free Cash Flow: Instead of selling the remaining rental properties and paying tax, we executed a strategic Cash-Out Refinance, placing tax-free cash in the client’s pocket for their next venture.

The Result

The client accessed over $500,000 in liquid capital while effectively paying 0% effective tax on the transaction.