Did you know that total consumer debt in the USA topped $16 trillion in 2022? The totals for non-financial services businesses are even higher, topping $17 trillion. The fact is that some companies and individuals are going to struggle with debt and will need to turn to debt relief programs. Fortunately, under the guidance of a financial services firm, you can develop tax strategies that can maximize debt relief and ease liabilities. If you need tax debt relief in or near Claremont, California, contact Whyte & Associates, Inc. at your convenience.
The general benefits of working with finance professionals include the following:
One option they often need to consider when struggling with debt is willingly transferring property to a lender. This property might include a home, vehicle, farmland, commercial buildings, or whatever else. You will likely have to pay a title transfer tax in California and many other states, but they are generally quite affordable.
The seller typically pays title taxes, but in some cases, arrangements can be made for the buyer to cover the costs. Could transferring some property provide debt relief? Possibly, but it’s wise to talk with financial experts in California to determine how best to proceed. Speaking of property, you can sometimes discharge certain debts associated with real estate tax-free.
Another option is to transfer debt into equity, say for a small business. A small business owner might owe a relative $50,000. Instead of paying in cash, the entrepreneur might offer a chunk of their company, say 10 percent of their shares. If you’re setting up a business, it’s also smart to work with a financial services firm, as they can help you identify the company structure that will best suit your needs and ambitions.
The above suggestions are far from exhaustive. It’s wise to sit down with a financial services firm to discuss options for debt relief, including tax strategies. Many businesses fail owing to improperly managed finances. Looking for tax debt relief in or near Claremont, California? Contact Whyte & Associates, Inc. at (909) 575-0080.