“4 Major Life Events That Require Tax Strategy — Not Just Tax Filing”

Financial Horizons: Insights for Building Wealth and Securing Your Legacy

“4 Major Life Events That Require Tax Strategy — Not Just Tax Filing”

By Dr. Jose G. Cardenas, Chief Tax Strategist at The C & R Group, LLC.

We all face pivotal financial events in life — buying a home, starting a business, inheriting property, or preparing for retirement.

But most people don’t realize these moments come with hidden tax consequences. And when you don't plan ahead, the IRS becomes the biggest beneficiary.

Let’s break down four key financial events and the tax implications you need to understand before you act:

A. Buying or Selling a Home 🏡

This isn’t just a real estate transaction — it’s a tax event.

✅ Home Sale Exclusion: If you’ve lived in your home 2 out of the last 5 years, you may exclude up to $250,000 (or $500,000 for married couples) of gain from taxes.

⚠️ Capital Gains: Selling investment property or second homes? These are fully taxable and can trigger depreciation recapture and state taxes if you're not careful.

🔄 1031 Exchanges: Want to defer taxes on investment property sales? This powerful strategy must be set up before the sale — not after.

B. Starting a Small Business 🚀

The structure you choose can cost or save you tens of thousands in taxes.

✅ LLC, S-Corp, or C-Corp? Each has pros, cons, and different tax treatments — especially when it comes to self-employment taxes, distributions, and retained earnings.

💡 Startup Costs: You may be eligible to deduct up to $5,000 in startup expenses — but only if structured properly.

🔍 Audit Risk: New businesses often trigger more IRS scrutiny. A professional strategy minimizes red flags from the start.

C. Retirement Planning 📉📈

The way you save matters as much as how much you save.

✅ Roth vs. Traditional: Tax-deferred now vs. tax-free later. The wrong choice can increase your future tax bracket.

📆 RMDs: Once you turn 73, Required Minimum Distributions from traditional accounts can spike your income (and tax bill) if not managed properly.

🛡️ IULs & Annuities: Life insurance-based strategies offer tax-advantaged growth and income — when structured correctly.

D. Inheriting Property or Money 🏛️

Most inheritances come with tax complexity, not just wealth.

✅ Step-Up in Basis: For inherited real estate or investments, this IRS rule can erase capital gains — if you know how to apply it.

⚠️ Retirement Accounts: Inherited IRAs now follow a 10-year withdrawal rule. Without a strategy, this can lead to massive tax bills for beneficiaries.

👨‍👩‍👧‍👦 Estate Tax Planning: Large estates may trigger federal and state taxes — unless shielded by trusts, gifting, or other strategies.

Each of These Events is a Fork in the Road

Tax filing is reactive. Tax strategy is proactive.

If you’re facing (or planning for) any of these events, the time to act is before the transaction — not after.

📲 Schedule a Tax Strategy Session with our team. Let’s design a blueprint that helps you keep more, grow more, and build with confidence.

About the Author

Dr. Jose G. Cardenas is a retired U.S. Army Finance Officer and the Chief Tax Strategist at The C & R Group, LLC. With a Doctorate in Business Administration and over 20 years of experience in financial strategy, tax planning, and life insurance, Dr. Cardenas helps individuals and business owners protect their wealth and build a legacy. Learn more at www.thecrgroupllc.com.

📌 Disclosure: This article is for educational and informational purposes only and is not intended to serve as personalized legal or investment advice. Dr. Jose G. Cardenas, DBA, provides tax advisory services through The C & R Group, LLC. Insurance strategies, including Indexed Universal Life (IUL) and annuity products, may be offered through his role as a licensed financial professional affiliated with Experior Financial Group.

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