This strategy is specifically meant for individuals earning high personal income looking to reduce their total tax burden. It utilizes a unique, structured transaction that provides the tax benefits of Flow-through Shares while avoiding the price risk and liquidity constraint that usually comes with Private Placements.

Before committing to a transaction, we always arrange a liquidity provider – typically, an institutional investor that wants to own the shares – to purchase the shares from our participant at a predetermined price. The buy and sell take place on the same day and the proceeds of sale are sent back to the participant’s bank account, typically within a few days of closing.

To take advantage of the tax benefits, an individual must qualify as an  Accredited Investor. Because the value of flow-through tax benefits is maximized when the purchaser is in the highest marginal tax rate, we typically recommend participation to individuals with high income (in excess of $250,000) in the current year.

Note: This is NOT an investment; merely a “Bought Deal” transaction, in which you own the shares for no more than a minute. When the transaction closes you are left with tax benefits and the proceeds of sale.