Cash Out – Sale
Wait to receive stepped up basis then cash out/sell
734 JAMAICA CT. 92109 (8 UNITS) SALE AND REPOSITIONING OF EQUITY INTO A CHARITABLE GIFT ANNUITY
In Q1 of 2020, Palma Commercial secured the assignment to market and sell an 8-unit apartment property in Mission Beach, for an owner who was preparing for her retirement and about to relocate to Michigan, in part due to the political climate of California, including its high taxes and increasingly onerous laws that make it difficult to govern one’s multifamily investment property, as well as to capitalize on the high priced San Diego-California multifamily sales market. Since the seller’s husband had recently passed away, and she received a full stepped-up basis, there was zero capital gains taxes to be paid once successful completion of the sale was accomplished within a timely manner.
With about $3M in funds to invest, this client opted to redeploy that equity into highly credible annuity funds, including an income annuity offered by USAA, and a Charitable Gift Annuity offered through her alma mater, the University of Michigan. Collectively, these funds have since continued to pay out at a blended rate of over 5%, via monthly payments to the investor, with no management or work required by the investor.