Tax and wedding planning

Profile:
Lori Roberts

The problem:

Lori owns property that she wishes to sell in a tax-advantaged way.

The plan:

Assess risk exposure, tax strategies, retirement readiness.

Profile

	Lori Roberts Lori Roberts plans to marry in fall of 2008. Before doing so, she wishes to evaluate her financial situation, and is particularly concerned about how she could best dispose of her property. Several other aspects of Lori's financial plan are addressed, as well as those of Steve, her fiance. The couple should consider making some changes to minimize their risk exposure. For example, they should both consider purchasing long-term-care insurance, and Steve should consider switching his business from a sole proprietorship to a Subchapter S corporation -- for both tax and liability purposes.

The problem

Overview

Lori Roberts is a 52-year-old single woman who is planning her wedding for September 2008. As a single individual with no dependents, her income places her in the 28 percent federal income tax bracket. Lori is getting married in 2008, so she can file a joint income tax return with her husband in 2008. We anticipate they will be in the 33 percent federal tax bracket for the 2008 tax year.

Lori owns, as an investment, a residential building lot in Punta Gorda, Fla. She estimates the lot has a current market value of $275,000. Her cost of this property in 1986 was $56,000. After deducting commissions and related costs of the sale, her anticipated capital gain on the sale of this property will be approximately $200,000. She is seeking advice on how she can minimize the capital gains tax on the sale of this building lot.

	This report was prepared by Thomas Briers, a certified public accountant/personal financial specialist and Certified Financial Planner with BriersCPA and Cornerstone Financial Planning of Fort Myers and Bonita Springs, Fla. His fee-based advisory services are offered through SSN Advisory Inc., a registered investment adviser.

Key issues

		Sell the property or do a like-kind exchange?

		Make sure credit standing is airtight.

		Invest emergency fund wisely.

		Consider getting long-term-care insurance.

		Restructure the business for liability protection.

		Analyze retirement readiness.

Jump these money hurdles