Sale of Business or Real Property
For many successful entrepreneurs and business owners, the sale of their business is one of the largest transactions of their lives. Unfortunately, the IRS is too often an unwanted party to the sale transaction. Establishing an iCLAT with part or all of the cash proceeds after the sale will greatly reduce the tax liability by "accelerating" a large charitable income tax deduction in the same taxable year of the sale. If the business owner is already charitably inclined, then the iCLAT's annual payments to charity are often in amounts that are close to the charitable payments that the business owner was already making prior to the sale transaction. Of course, after the term of the iCLAT ends, then the remaining (or appreciated) sale proceeds will return back to the donor in a non-taxable transaction.