Are you thinking about making a major purchase?
Well, have you considered all of your financing options and how you can help maximize tax efficiencies of the option you choose? For example, maybe there’s a beachfront property you have your eye on but you’re unsure about the best way to purchase it.
Your Wells Fargo Private Bank team can help you understand and evaluate each purchasing option in the context of your overall wealth plan. We can help you consider if a jumbo mortgage is right for you, and how it may impact your maximum interest tax deduction.
Liquidating some of your existing stock to fund the purchase is another option; however, that may trigger capital gains taxes. Or, maybe pledging your existing securities as collateral for a line of credit is a good option because it frequently offers tax benefits.
With this option, a financial advisor from Wells Fargo Advisors can join the conversation to help you assess whether it makes sense for your situation.
Regardless of which strategy you ultimately choose, your team will be with you every step of the process. We’ll work closely not only with you but with your tax advisor to make sure the tax implications of your financing strategy are fully explored, understood, and align with your overall goals.
We’re here to assist you with your major purchasing needs while helping you keep your overall wealth plan intact. Maximizing tax efficiencies with thoughtful borrowing is just one of the five strategic ways credit can be put to work for you.
Let’s start a conversation about credit. Contact Wells Fargo Private Bank to learn more.
Wells Fargo Private Bank provides products and services through Wells Fargo Bank, N.A. and its various affiliates and subsidiaries.
Wells Fargo & Company and its affiliates do not provide legal or tax advice. Please consult your legal and/or tax advisors to determine how this information may apply to your own situation. Whether any planned tax result is realized by you depends on the specific facts of you own situation at the time your taxes are prepared.
Investment products and services are offered through Wells Fargo Advisors. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and separate non-bank affiliate of Wells Fargo & Company.
Securities-based lending has special risks and is not suitable for everyone. If the market value of pledged securities declines below required levels, you may be required to pay down the line of credit or pledge additional eligible securities in order to maintain it, or the lender may require the sale of some or all of your pledged securities. The sale of pledged securities may cause you to suffer adverse tax consequences. You should discuss the tax implications of pledging securities as collateral with a tax advisor. Wells Fargo Bank, N.A. and its affiliates are not tax or legal advisors. All securities and accounts are subject to eligibility requirements. You should read all lines of credit documents carefully. The proceeds from some asset-backed lines of credit may not be used to purchase additional securities or pay down margin. Securities held in a retirement account cannot be used as collateral to obtain a loan. Securities purchased in the pledge account must meet collateral eligibility requirements.
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