These scenarios reflect actual client engagements. Names and identifying details have been removed. The numbers are real.
A business owner completed a liquidity event generating a $10,000,000 taxable capital gain. Without tax planning, the owner faced a combined rate of 28.35% — the federal long-term capital gains rate of 20%, Utah state income tax of 4.55%, and 3.8% NIIT. The PSA reduced the effective net cost to 11% of the taxable gain.
| Scenario | Effective Rate | Tax / Cost | Net Retained |
|---|---|---|---|
| Without Tax Planning | 28.35% | $2,835,000 | $7,165,000 |
| With PSA (Gross) | 16% | $1,600,000 | $8,400,000 |
| With PSA (Net, incl. capital returned) | 11% | $1,100,000 | $8,900,000 |
A California homeowner sold their primary residence, generating a $1,500,000 taxable capital gain after the primary residence exclusion. Their combined California rate was 33.3% — federal 20% plus California's 13.3%. No NIIT applied. The PSA brought the effective net cost down to 11% with no retainer or annual fees.
| Scenario | Effective Rate | Tax / Cost | Net Retained |
|---|---|---|---|
| Without Tax Planning | 33.3% | $499,500 | $1,000,500 |
| With PSA (Gross) | 16% | $240,000 | $1,260,000 |
| With PSA (Net, incl. capital returned) | 11% | $165,000 | $1,335,000 |
Shareholders of a California-based C-Corporation collectively owned approximately 75% of the company. The transaction was structured as a pure stock sale — avoiding double taxation. Their combined taxable gain was $5,250,000 at a combined rate of 37.1% (20% federal + 13.3% California + 3.8% NIIT). The PSA offset the exact dollar amount of taxable gain — to the penny.
| Scenario | Effective Rate | Tax / Cost | Net Retained |
|---|---|---|---|
| Without Tax Planning | 37.1% | $1,947,750 | $3,302,250 |
| With PSA (Gross) | 16% | $840,000 | $4,410,000 |
| With PSA (Net, incl. capital returned) | 11% | $577,500 | $4,672,500 |
A high-income California earner generated $5,000,000 in taxable ordinary income. Without planning, the combined rate was 50.3% — federal 37% plus California 13.3%. The PSA generated a matching K-1 loss under IRC §704(b), offsetting the full $5,000,000 dollar for dollar. The effective net cost was 12.5% of tax owed after the investment account return.
| Scenario | Effective Rate | Tax / Cost | Net Retained |
|---|---|---|---|
| Without Tax Planning | 50.3% | $2,515,000 | $2,485,000 |
| With PSA (Gross) | 20% | $1,000,000 | $4,000,000 |
| With PSA (Net, incl. capital returned) | 12.5% | $625,000 | $4,375,000 |
All case studies reflect real client engagements. Names, entities, and identifying details have been anonymized. Results are based on specific facts and circumstances and are not a guarantee of future outcomes. Tax results vary based on individual situation, state of residence, income type, and timing. These figures should not be interpreted as legal or tax advice. Consult with a qualified tax professional regarding your specific situation.
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