For over two decades, the Restricted Property Trust (RPT) has proven itself to be one of the most effective and reliable tax deferral strategies available to business owners. Through its battle-tested history, the RPT has successfully helped businesses across the country reduce taxable income, offering a legal, conservative solution to long-term wealth building.
A Proven Tax Reduction Strategy
The Restricted Property Trust allows business owners to reduce their taxable income by up to 70% of their total contributions, making it an attractive option for those looking to optimize their tax planning strategies. With its structured approach, the RPT ensures compliance with all tax regulations while offering significant financial benefits. Importantly, the RPT deduction is no longer considered a “gray area,” having passed the rigorous scrutiny of the IRS and U.S. courts.
Debunking Misconceptions
Any negative commentary surrounding the RPT has been thoroughly debunked, and advisors who disparage the strategy are either misinformed or unaware of its legal validity. There is no third option — the RPT works, and it works exactly as advertised. Over the years, the RPT has been subject to numerous audits, appeals, and even federal litigation, and in every case, the program has proven its legality and effectiveness. Every question and concern raised about the RPT has been answered, affirming the strategy’s place as a lawful and fully allowable deduction for business owners.
Not a Listed Transaction
One of the key elements of the RPT’s success is that it is not considered a listed transaction by the IRS. In fact, it never should have been viewed as such. The IRS’s Notice 2007-83, which initially raised concerns about certain tax avoidance schemes, has been vacated and is no longer applicable to the RPT. The tax consequences associated with the RPT are over 85% different from the scenarios outlined in the notice, making any association with listed transactions moot.
Battle-Tested and Lawful
Throughout its more than 20-year history, the RPT has faced and survived numerous challenges. It has been audited, appealed, and litigated at both the federal and state levels, and each time, it has emerged unscathed. Despite repeated attempts to undermine its validity, the RPT has survived every IRS challenge and continues to be a trusted strategy for many successful business owners. Far from being a high-risk plan, the RPT is a conservative, reliable, and time-tested tax deduction method.
Seamless Integration with Other Plans
One of the advantages of the RPT is its flexibility. It can be set up alongside other qualified corporate benefit plans without any interference. Contributions to an RPT will not impact the amount a taxpayer can allocate to a qualified plan, making it an ideal complement to existing financial strategies. Additionally, the RPT works seamlessly with a wide range of corporate structures, including S Corporations, C Corporations, Partnerships, and LLCs (provided the LLC is not taxed as a single-member LLC).
Ideal for Buy-Sell Planning
The RPT is also an excellent tool for buy-sell planning, allowing business owners to effectively manage the financial implications of transferring ownership or dealing with business succession. Its ability to provide a secure, tax-advantageous way to plan for future transitions has made it a popular choice for entrepreneurs and companies alike.
Zero Risk of Penalties
One of the most important aspects of the RPT is its legal standing. There is absolutely no risk of penalties associated with the RPT deduction, providing peace of mind for those who choose to implement the strategy. The legal victories and ongoing IRS settlement mean that business owners can adopt the RPT without fear of financial repercussions.
A Conservative Approach to Tax Planning
The RPT has consistently been regarded as a conservative and effective tax strategy. It’s designed for business owners who value compliance and stability over aggressive, high-risk tax plans. By following a proven and lawful approach, the RPT allows participants to focus on long-term wealth building without worrying about future IRS issues or penalties.
A History of Success
For more than 20 years, the Restricted Property Trust has delivered exactly what it promises — significant tax reductions and financial benefits for business owners across the country. Despite facing numerous legal challenges and regulatory scrutiny, the RPT has stood the test of time and proven its value to countless participants.
The Restricted Property Trust continues to be a powerful and legally upheld tax strategy for business owners looking to reduce their taxable income while maintaining full compliance with federal tax laws. With over two decades of success and a track record of delivering 100% as advertised, the RPT is a secure, reliable, and conservative option for those seeking a lawful way to manage their taxes effectively.
