Steve Stanganelli

CFP®, CRPC®, AEP®, CCFS
Personal Finance, Retirement, Taxes
94%
Helpful
80
Answers
20
Articles
47
Followers
“Helping People Make Smarter Money Choices. Steve Stanganelli with Clear View Wealth Advisors is a fee-only fiduciary advisor and tax planner providing objective advice not tied to the sale of any investment or insurance products.”
Firm:

Clear View Wealth Advisors, LLC

Job Title:

Managing Member / Financial Planner

Biography:

As a CERTIFIED FINANCIAL PLANNER ™ Professional, Steve Stanganelli has been providing financial, tax, retirement and college funding advice for more than 30 years to individuals, families and business owners throughout Greater Boston, the Merrimack Valley and New Hampshire Seacoast.

Professionally, Steve sees himself as a financial coach or navigator. His role is to help clients navigate the sea of confusion that is personal finance. He has worked hard to develop his experience and assemble the kinds of tools that are needed to help his clients with a variety of financial challenges including divorce, funding college tuition, and building efficient portfolios for long-term investing goals.

In his professional work, Steve is humbled knowing that people entrust him with their hard-earned wealth — regardless of the amount — or seek his guidance on any number of life-changing issues that can affect their personal bottom line. He finds it rewarding and humbling each time a client entrusts him not just with their money to manage but their dreams. Like many of his peers, Steve is a member of the “Sandwich Generation” helping to care for elderly parents while raising a family of his own.

Steve knows what it feels like trying to deal with the frustrating details of Medicare and the Part D “donut hole.”  He knows what it feels like to juggle the responsibilities as an elder care giver with the demanding schedule of school-age kids. Steve knows all too well the sense of loss created by an unexpected corporate downsizing or downturn in business or sudden death of a loved one.

Like many of you who may read this, Steve leads a complex life – husband, father, son, homeowner, landlord, professional by day, weekend athlete (road cyclist). He can relate to the challenges his clients have faced or will meet.  And he genuinely wants to share his insights, experience, and training to help others make the most with their lives.

Initially, Steve was a registered representative affiliated with an independent broker-dealer.  Then he affiliated with a national wire house broker completing their extensive training programs and using the opportunity to complete the educational requirements for both of Steve's financial planning designations. Ultimately, Steve decided that he did not fit into the culture of a broker-dealer and turned toward more fee-only planning-oriented firms. In 2010 he consolidated his practice into his own firm, a state-registered investment advisor, to offer flexible financial and tax planning services as well as low-cost ETF investing solutions.

Education:

BA, Economics, University of Massachusetts at Lowell
MS, Finance, Bentley University

Assets Under Management:

$4 million

Fee Structure:

Fee-Only

CRD Number:

3217444

Videos
  • Investopedia Advisor Insights Interview of Steve Stanganelli CFP
  • Investopedia Advisor Insights Interview of Steve Stanganelli CFP
All Articles
Sort By:
Most Helpful
February 2017
    Financial Planning, Personal Finance
December 2017
    Choosing an Advisor, Financial Planning, Investing
February 2017
    Financial Planning, Retirement Plans, Retirement Savings
February 2017
    Choosing an Advisor, Financial Planning, Investing
February 2017
    Asset Allocation, Retirement Savings, Tax Deductions / Credits, Taxes

All Answers
Sort By:
Most Helpful
    Investing, Real Estate, Taxes
What are strategies for avoiding capital gains on the sale of a rental house?
100% of people found this answer helpful

As an owner of investment real estate, you'e decided to sell. But unlocking the value and turning it into cash can also result in a large tax bill especially if your asset has appreciated since your initial investment back in the 1980s.

First things first: Since you no longer occupy the property as your primary residence, you cannot use the Section 121 exemption of $500,000 over basis (married filing jointly) to shield yourself from a capital gain tax liability.

Second, you could add someone to the title and that person would need to occupy as his primary residence for two of the last five years. So, no, he wouldn't need to live there for five years.

Third, if you choose not to live in the property while your son does, you each must apply Section 121 individally. If you and a joint owner other than your spouse sell your jointly owned home, each of you must figure your own gain or loss according to your ownership interest in the home. Each of you applies the rules on Section 121 found in IRS Publication 523 on an individual basis. So, unless you move back into the property for at least two years out of the past five, then you won't be sheltering any of the gain for your portion of the property. 

Now, you may think it's hopeless and you should just pay the tax. While that is an option there are innovative strategies available to you if you want to lower your income tax bill when you sell and investment property (or business for that matter).

Typically, when a business or real estate owner sells they will need to deal with capital gains tax, state taxes, depreciation recapture and, in some cases, the alternative minimum tax. But through savvy tax and estate planning, you can take advantage of opportunities in the tax code to minimize your current tax liability while allowing you the flexibility to control the sale proceeds.

Real estate investors can use a 1031 Exchange, a provision of the Internal Revenue Code which allows an owner to relinquish property and replace it with a similar type of asset without recognizing gain and deferring taxes.

While a 1031 Exchange offers tax deferral, it is ONLY a replacement option. You must replace income-producing property with other income-producing property but you may not receive cash upon the sale without paying tax on the gain.

Other options offer even more flexibility to sell highly appreciated assets like stock in a privately-held business or ownership of residential rental or commercial real estate while also controlling use of the cash that is freed up from the sale. These include a strategy like a “monetized installment sale” (M453) previously referred to as a “collateralized” or C453 installment sale.

This option is based on the installment sale rules contained in Section 453 of the Internal Revenue Code. This offers you options to salvage a failed 1031 Exchange which can occur if a seller of a property cannot locate a suitable replacement property or a closing fails to occur within the 180 days required by law.

In addition to deferring taxes while freeing up cash that can be used today, it also offers you a great estate planning tool. This is because of the discount that an estate receives for something called ‘lack of marketability.’

Monetized Installment Sale (formerly Collateralized Installment Sale)

Another variation on the standard installment agreement is a monetized installment sale previously called a ‘Collateralized Installment Sale Agreement’ and sometimes referred to as a C453 installment sale. This strategy has a longer track record.

There are two distinct transactions as part of this strategy.  The seller agrees to sell the property or a business to a dealer who resells the property to a final buyer using the original terms.  Separately, the seller receives a limited-recourse loan from a lender typically equal to 95% of the resale proceeds.  The seller can then take the non-taxable loan proceeds and reinvest however he sees fit. Proceeds can be used to pay off debt, invest in another business or property or in securities without the limitations of a 1031 Exchange.  The dealer receives cash from the final buyer in a lump sum or through a lump sum plus one or more installments which offloads the risk of an installment sale onto the dealer.  The lender’s loan to the original seller is repaid by automatic payments from the money that the dealer pays to the seller on the installment contract.

Unlike a 1031 Exchange, these installment sale variations can be used for the sale of more than just real estate.  It can be used to handle the sale of an interest in an operating business as well offering more flexibility to an investor.

Ultimately, this strategy allows a seller to defer taxes while investing the proceeds today to generate replacement income and cash flow (or to use however the owner deems fit). Clients win by deferring taxation of gains and by having full control of the wealth unlocked from the sale of the highly appreciated asset.  In the case of a monetized installment sale (or C453 sale), the client has full control of non-taxable loan proceeds. Clients also win by having more flexibility to invest in other property, businesses or securities that may produce higher income over time than the business or real estate being relinquished. As the saying goes, a bird in the hand is worth more than a bird in the bush and with these strategies investors have more in hand to invest.

You can read more about this and watch a video that helps explain the concept here.

February 2018
    Banking
How do I avoid fees or possible escheatment for a lack of activity in a bank account?
100% of people found this answer helpful
March 2018
    Retirement Savings, IRAs
What's the difference between a savings account and a Roth IRA?
81% of people found this answer helpful
April 2017
    Social Security
Must I pay Social Security taxes on my earnings after full retirement age?
76% of people found this answer helpful
January 2017
    Real Estate
I sold my house. Can I exclude the gain from my income?
68% of people found this answer helpful
January 2017