Summit Wealth Strategies™ offers specialized tax and investment strategies designed to address significant capital gains and ordinary income tax liabilities for high-income earners, high-net worth individuals, and business owners. Here are some strategies we may recommend in your personalized plan. We do not give tax advice, but we work closely with CPAs and accounting professionals to help determine which strategies might benefit your situation.
Tax Strategies
Summit Wealth Strategies
Strategies We May Recommend to You
Tax-Advantaged Wealth Strategies
1. Deferred Tax Strategy
Primary Objective: Mitigating capital gains on a future sale of highly appreciated assets.
If you are selling, or are considering the sale of a highly appreciated asset such as a business, real estate, art, car collection, stocks, etc. with $1,000,000 or more of capital gains exposure, we have a deferred tax strategy you should consider!
2. Realized Capital Gains Strategy
Primary Objective: Strategic tax-planning tool for managing and deferring realized capital gains of $1 million+ in last six months.
- Tax Deferral & Reduction: This capital gains strategy provides a significant projected discount to the fund’s fair market value for tax purposes, substantially reducing the final taxable capital gain.
- Tax-Free Income: Investors receive quarterly, completely tax-free distributions of 1.5% (6% annually), sheltered by intangible drilling cost deductions, depletion allowance, and depreciation. This tax-free income helps to offset the difference between the discounted amount.
- Tax-Free Growth: The fund reinvests all revenue above the 6% distribution for 10 years, with a projection of 2x capital gains that are completely tax-free after holding the investment for 10 years and 1 day.
- Operator: The fund operates through joint ventures with major oil companies, including ConocoPhillips, Chevron, and Devon.
3. Ordinary Income Reduction Strategy for $600K plus W2, 1099, and K1 Income Earners
Primary Objective: This strategy is structured as a pure tax-planning and income-generation tool, focused on creating significant ordinary income deductions, and can also facilitate strategic Roth conversions.
- Income Tax Deductions: Offers up to 90% deductions in the initial year as an above-the-line deduction against W2, 1099, and K1 income. Example, a $1,000,000 investment with a 90% deduction would lower taxable income by $900,000.
- Cash Flow: Targets a full return of the original investment within six years through quarterly distributions (historically averaging 20% cash on cash annually). Distributions are tax-advantaged due to the depletion allowance and depreciation.
- Roth Conversion Benefit: For 2026 IRA holders, the fund offers LLC units that enable Roth conversions at a significant discount, subject to fair market.
4. Tax-Sheltered Income Reduction Strategy for Those In the 37% Federal Tax Bracket
Primary Objective: A shorter-term alternative focused primarily on yield generation and asset growth.
- Flexible Yield-and-Growth Strategy: Accredited investors can select distribution rates between 3% and 12% annually in completely tax-sheltered income. For those in the 37% tax bracket, the 12% tax-sheltered yield is equivalent to approximately a 16% taxable yield. The “Growth and Exit” model targets a 2x return within five years.
Important Disclosure Information
Summit Wealth Asset Management, LLC (“SWAM”) is a registered investment adviser licensed in the states of Colorado, Minnesota, and Wyoming. dba (doing business as) Summit Wealth Strategies, LLC (“SWS”) conducts its financial services business. Registration with the SEC or state securities authorities does not imply a certain level of skill or training.
All information provided is for educational purposes only and does not constitute formal tax, legal, or investment advice. Tax strategies, including those involving deductions, deferrals, and asset allocations, are complex, subject to change with current tax codes, and vary with an individual’s specific financial circumstances. Tax deductions may be subject to IRS recapture rules.
Investments in private placements, private equity, and energy-sector funds are speculative, illiquid, and carry a high degree of risk, including the potential loss of the entire investment. There is no public market for these securities. Any references to targeted distribution rates, capital recovery horizons, or growth projections are hypothetical targets based on third-party fund sponsor assumptions and do not guarantee future results. Actual performance may vary significantly.
Summit Wealth Strategies, LLC does not provide formal tax or legal advice. Clients should consult with an independent CPA or tax attorney regarding their specific situation prior to making any investment decisions. References to third-party operators (e.g., ConocoPhillips, Chevron, Devon) represent potential underlying joint-venture partners and do not constitute endorsement. Offering documents, including prospectuses, will be provided as needed.
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