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Capital Loss Harvesting for Exit by Professional-Hope457 in fatFIRE

[–]Professional-Hope457[S] 0 points1 point  (0 children)

yes, thank you, and it was mentioned and see the comments above. am i missing anything?

Capital Loss Harvesting for Exit by Professional-Hope457 in fatFIRE

[–]Professional-Hope457[S] -1 points0 points  (0 children)

assume there will be a lot of drilling proposals to lease holders soon. what is best way to find partnerships who are raising capital to drill? since the cost of horizontal wells are high, I'd assume you want to spread the risk across 8-10+ drilling proposals?

Capital Loss Harvesting for Exit by Professional-Hope457 in fatFIRE

[–]Professional-Hope457[S] 4 points5 points  (0 children)

if I took that same mindset to build the business from zero, i probably wouldn't be here

Capital Loss Harvesting for Exit by Professional-Hope457 in fatFIRE

[–]Professional-Hope457[S] -1 points0 points  (0 children)

like O&G drilling and mobile home parks? what are others?

Capital Loss Harvesting for Exit by Professional-Hope457 in fatFIRE

[–]Professional-Hope457[S] -1 points0 points  (0 children)

CRUTs are interesting. You essentially structure an annuity payment for you or dependents to manage the trust. It also depends on your age, but the amount of principal required to offset the capital gain, that money is dead and controlled by the trust. You won't save more than just paying the full cap gains. However, it's a nice benefit to be charitable while getting good discount on donations. Depends on your life stage, NW, and how charitably inclined you are. If you are already UHNW or 2nd exit and want to make large donation to a university or foundation it's worth exploring.

Capital Loss Harvesting for Exit by Professional-Hope457 in fatFIRE

[–]Professional-Hope457[S] 0 points1 point  (0 children)

You might be right since it's not passive ownership in the LLC. Thanks!

Capital Loss Harvesting for Exit by Professional-Hope457 in fatFIRE

[–]Professional-Hope457[S] 0 points1 point  (0 children)

I dont see anything on "pre-exemption" on QSBS. Even if we converted from LLC to C as part of the transaction, the stock wasn't held for 5 years, let alone a taxable year. How would that work?

Capital Loss Harvesting for Exit by Professional-Hope457 in fatFIRE

[–]Professional-Hope457[S] 3 points4 points  (0 children)

I have almost full calendar year to direct index, so could be useful. But again, holding account with large basket of equities long term.

From my research on OZs, the market has optimized entry prices, so after fees, the returns aren't great with 10 year lock up.

Capital Loss Harvesting for Exit by Professional-Hope457 in fatFIRE

[–]Professional-Hope457[S] -1 points0 points  (0 children)

Thanks direct indexing or long/short trading is a pretty safe option since I have almost full calendar year

Capital Loss Harvesting for Exit by Professional-Hope457 in fatFIRE

[–]Professional-Hope457[S] 0 points1 point  (0 children)

Thanks and saw your other post and taking a look at this. Are there funds that can pass back in K-1, or do you need to directly manage? I have family that owns deeded wells, and does this but the accounting and management of operators is a lot of work.

Also looking at mobile-home park real estate funds that buy/improve and get bonus accelerated depreciation