Photo Credit: Restricted Property Trust
In the world of tax planning, few strategies have withstood the test of time like the Restricted Property Trust (RPT). For over 20 years, the Restricted Property Trust has been helping business owners reduce their taxable income while offering them a lawful and conservative path to financial security. What makes the Restricted Property Trust so remarkable is its survival through dozens of audits, appeals, and even federal court cases.
A Proven Solution for Business Owners
At its core, the Restricted Property Trust allows business owners to reduce their taxable income by up to 70% of their total contributions. This significant reduction is a game-changer for businesses looking to invest in their growth or plan for the future. While many tax strategies offer short-term gains but come with legal risks, the Restricted Property Trust has consistently delivered long-term success without compromising compliance with federal tax laws.
A Battle-Tested Strategy
Over the past two decades, the Restricted Property Trust has faced its share of challenges. Critics have raised concerns about its legality, claiming it existed in a “gray area” of tax law. However, these concerns have been debunked through numerous audits and appeals. The Restricted Property Trust has emerged unscathed, proving it is a fully lawful deduction for business owners.
Not a Listed Transaction
One of the biggest legal victories for the Restricted Property Trust was its removal from the IRS’s list of questionable transactions. IRS Notice 2007-83 once raised concerns, but it has since been vacated. The tax consequences of the Restricted Property Trust differ significantly from those outlined in the notice, confirming that it is not a listed transaction. Entrepreneurs can now use the Restricted Property Trust without fear of penalties or IRS challenges.
A Conservative and Reliable Tax Plan
Unlike aggressive tax deferral strategies that may offer short-term gains but carry legal risks, the Restricted Property Trust offers a conservative, compliant approach. It is designed for business owners who prioritize long-term financial success. The Restricted Property Trust allows participants to reduce taxable income without the risk of audits or penalties.
A Flexible Option for All Business Types
One of the Restricted Property Trust’s most attractive features is its flexibility. It works with a variety of corporate structures, including S Corporations, C Corporations, partnerships, and LLCs (except single-member LLCs). It can also be implemented alongside qualified benefit plans, such as 401(k)s and pensions, without interfering with contributions to those plans.
Zero Risk of Penalties
Unlike other tax deferral strategies that may carry fines or penalties from the IRS, the Restricted Property Trust has been fully vetted and legally upheld. Entrepreneurs can rest easy knowing they are using a secure, penalty-free strategy to reduce taxable income.
The Restricted Property Trust: A Legacy of Success
For over 20 years, the Restricted Property Trust has delivered significant tax savings and financial benefits for business owners. Despite legal challenges and scrutiny from the IRS, the Restricted Property Trust has emerged stronger than ever, offering a time-tested, legally sound tax deferral strategy.
Written in partnership with Tom White
