With only six weeks left in the year, we outline two planning strategies that may be relevant for you in 2018 following the 2017 Tax Cuts and Jobs Act (TCJA) – both are related to Charitable Donations and could yield significant tax savings.
Despite what some people may say, no one really knows the exact reason as to why the market has pulled back so ferociously, but what we do know is that in any given year, the market normally has 3 drops of over 5%. This is the 2nd drop this year after zero in 2017. In other words the market generally goes up over time, but can take a step back or two at any moment. That said, markets tend to move in cycles and we must be cognizant of where we are because, as cycles get longer, pullbacks tend to become more frequent and more severe.
Canal Capital Management is pleased to announce that we have been selected to the Inc. 5000 list for 2018. This is an annual ranking that consists of the fastest growing private companies in America. Canal came in ranked at number 4,200, and was one of only 28 Richmond businesses included on the list.
How the 2018 Inc. 5000 Companies Were Selected
Companies on the 2018 Inc. 5000 are ranked according to percentage revenue growth from 2014 to 2017. To qualify, companies must have been founded and generating revenue by March 31, 2014. They must be U.S.-based, privately held, for-profit, and independent–not subsidiaries or divisions of other companies–as of December 31, 2017. (Since then, some on the list have gone public or been acquired.) The minimum revenue required for 2014 is $100,000; the minimum for 2017 is $2 million. As always, Inc. reserves the right to decline applicants for subjective reasons.
Note: Growth rates used to determine company rankings were calculated to two decimal places. In the case of ties, the companies with more revenue were placed higher.
“Everyone has a plan until they get punched in the mouth.” -Mike Tyson
While we are bullish in the short term, we remain cognizant of where we are in the cycle and are preparing ourselves for what a down market may bring. Having a plan in place beforehand helps control emotions and ultimately leads to better investment decisions. In this latest newsletter, we’ve taken a look back at this past quarter, some of the things that are causing the choppiness in the market: tariff talks and rising interest rates, and how we are preparing for a more volatile market environment.
Tax-Deferral Opportunity on the Sale of Low-Basis Assets:
Are you considering selling stock, real estate, or a business that has substantially appreciated in value? Are you concerned with the capital gains tax that will accompany those sales?
The December 2017 Tax Cuts and Jobs Act (TCJA) provides a new tax incentive and potential solution for investors to defer, if not eliminate, capital gains tax on the sales of assets in exchange for investments back into Qualified Opportunity Zones (“QOZs”) across the Commonwealth. Click here for more details