Tax Season Turbulence
How one advisor’s client dealt with an unexpected tax bill 48 hours before departure.
“I only have 48 hours,” the executive said when he called his financial advisor on that Tuesday in December. An unexpected IRS tax bill had put the executive in a bind. He was leaving the country on Thursday for two weeks and needed to pay the full tax balance before his flight. The advisor and his client brainstormed ways to quickly—and cost effectively—access liquidity.
Options were few and far between. Obtaining a bank loan would involve significant time and lots of paperwork. Liquidating brokerage assets would trigger steep capital gains taxes. That’s when the executive and his advisor turned to GS Select, after the advisor heard about the platform from a colleague.
GS Select enabled the executive to apply, sign and secure the necessary line of credit with help from his advisor—all under 48 hours in this case. The executive paid off the original line the following month with his year-end bonus but increased the available credit to $2.5 million to draw upon at a moment’s notice in the future. His advisor was pleased and relieved. He was able to retain all assets under management, keep his client from paying steep capital gains taxes, and keep his client with an on-time departure.
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