Case Studies

Real situations. Real outcomes.

Every client situation is unique. These case studies illustrate how we approach common financial challenges faced by tech professionals, sales leaders, and real estate investors. All details are anonymized or composited to protect client privacy.

Case Study 01

From 75% concentration to a tax-efficient diversification plan — without a single dollar of unnecessary tax

RSU Planning Concentrated Stock Tax Strategy Alternative Investments Diversification
Client profile
Senior Software Engineer
Large Semiconductor Company
California · Married Filing Jointly

The situation

A senior software engineer came to us with $1.5M in a single employer's stock — 75% of her investable assets — and $500K in retirement accounts. She had been vesting RSUs for several years but had never sold. Her previous advisor's only strategy was selling covered calls, a poor approach for a highly volatile tech stock that offered no real protection against concentration risk or tax exposure.

The challenge

With combined household income of $730K (married filing jointly), California state taxes compounded an already significant federal burden. Any straight sale of the concentrated position would have triggered an immediate tax bill in the highest marginal brackets. The stock had continued to appreciate — making the concentration worse over time, not better. She knew the risk but had no viable path forward.

What we did

We built a rolling 5-year diversification plan using a layered approach: Oil & Gas investments to generate immediate deductions against earned income, followed by a structured sequence of tax-advantaged exchange strategies to systematically reduce concentration. The exchange funds became the foundation of a globally diversified portfolio — turning a concentrated single-stock risk into a professionally managed, multi-asset investment structure without triggering unnecessary tax events.

The strategy — year by year

2022

Oil & Gas investment ($100K) + Qualified Opportunity Zone fund ($300K) — the Oil & Gas investment generated ~$90K in deductions against ordinary income, meaningfully reducing the household tax burden. Simultaneously, $300K of concentrated stock was exchanged into a Qualified Opportunity Zone fund, deferring capital gains while repositioning into a diversified real estate vehicle with long-term tax advantages.

2023

Oil & Gas investment ($100K) — continued the deduction strategy, generating another ~$90K offset against earned income as RSUs continued to vest and the position grew.

2024

721 Exchange ($200K) + Oil & Gas investment ($100K) — $200K of concentrated shares were exchanged into a diversified REIT structure via a 721 exchange. This became the first building block of a globally diversified portfolio constructed around the exchange funds, converting a single-stock position into a professionally managed, income-producing real estate portfolio without triggering a taxable event. Oil & Gas deductions continued.

2025

351 Exchange ($200K) + Oil & Gas investment ($100K) — $200K in appreciated stock was contributed to a diversified investment fund via a 351 exchange, further expanding the globally diversified portfolio built around these exchange vehicles — adding another layer of asset class diversification while maintaining full tax deferral. Oil & Gas deductions continued.

Ongoing

As the stock has continued to soar well beyond original projections, what began as a 5-year plan has evolved into an ongoing wealth management engagement — one that will continue to incorporate new tax-efficient strategies as they become available and as the position and market conditions warrant.

Outcomes

$700K
Diversified in a tax-efficient manner over 3 years
~$270K
In Oil & Gas deductions generated across 3 years
75%→50%
Concentration reduced despite significant stock appreciation
2 referrals
Client and spouse referred their closest friends as new clients
"She came in knowing something was wrong. She left with a plan that addressed the tax burden, reduced the risk, and didn't force her to hand the IRS a check to do it. That's what good planning looks like."
— Nirav Desai, Founder, Qubera Wealth Management
Case Study 02

A $1M tax bill from a PE acquisition — reduced by nearly half through four coordinated strategies

Liquidity Event Tax Strategy QOZ Investment Short-Term Rental Charitable Planning CLAT
Client profile
Senior Director, Bay Area SaaS Company
(IPO 2019, PE Acquisition 2021)
California · Married, Non-Working Spouse

The situation

A Senior Director at a Bay Area SaaS company came to us after his company — which had gone public in 2019 — was acquired by private equity in 2021, forcing the liquidation of approximately $2.5M in stock. Combined with his $500K W2 income ($300K salary + $200K RSU), the event created a combined federal and California tax liability of over $1M. This was his first experience working with a financial advisor.

The challenge

The acquisition was involuntary — there was no opportunity to plan around the timing of the sale. With $714K in federal taxes and $330K in California state taxes due, the clock was ticking. The challenge was to deploy the proceeds intelligently in the time remaining in the tax year, using strategies that could legitimately reduce the tax burden without simply deferring the problem indefinitely.

What we did

We deployed four coordinated strategies simultaneously: a Qualified Opportunity Zone investment to defer capital gains, a short-term vacation rental to generate active business losses against ordinary income, a Charitable Lead Annuity Trust funded from the proceeds to generate an immediate charitable deduction, and ongoing investment management for the remaining assets. Together these reduced a $1.044M combined tax bill by nearly $485K.

Tax exposure — before and after planning

Without planning

Federal taxes$714,000
California state taxes$330,000
Total tax bill$1,044,000

After planning

Federal taxes paid$384,000
California taxes paid$175,000
Total tax paid$559,000
Total tax savings
~$485,000
Across federal and California — through four coordinated strategies deployed in a single tax year
Tax bill reduced by
46%
From $1.044M down to $559K

The four strategies

Strategy 1
Qualified Opportunity Zone Investment — $500K

$500K of the liquidation proceeds were invested in a Qualified Opportunity Zone fund in 2021, deferring the associated federal capital gains tax (23.8%) until April 2027. This removes a significant portion of the gain from the current year's tax calculation while repositioning the capital into a long-term investment with potential future tax advantages.

Strategy 2
Short-Term Vacation Rental — Lake Tahoe Area

Using $300K of proceeds as a 20% down payment, the client purchased a $1.5M vacation rental in the Lake Tahoe area, managed actively by his wife. Because short-term rentals qualify as a business — not a passive investment — active management of as few as 100–500 hours is sufficient to unlock business loss treatment. The resulting $400K in depreciation deductions generated dollar-for-dollar offsets against both federal and California ordinary income. The property has since appreciated to approximately $1.8M and generates ongoing cashflow — and family memories for the couple and their young sons.

Strategy 3
Charitable Lead Annuity Trust (CLAT) — $500K

$500K was contributed to a Charitable Lead Annuity Trust — an irrevocable trust that pays a fixed annuity to charity for a set term, with the remaining assets passing back to the client or his heirs at the end. The contribution generated an immediate $500K charitable deduction in 2021. Structured as a backloaded CLAT, the charitable payments begin modestly and increase over time, allowing the trust assets to compound in the early years. At the end of the 20-year term, the projected residual is a low-seven-figure asset base — potentially transferable to heirs gift-tax free if trust growth exceeds the IRS hurdle rate. For a client who is genuinely charitably minded, the CLAT delivers both an immediate tax benefit and a lasting legacy of giving.

Strategy 4
Ongoing Investment Management & 2027 Planning

The remaining proceeds were invested in a diversified, tax-efficient portfolio — coordinated across all four strategies to ensure the full financial picture remained integrated. When the deferred QOZ taxes come due in April 2027, the plan accounts for this in two ways: tax-free distributions from the QOZ investment will offset a portion of the liability, and for the remainder, a box-spread loan strategy will be used to generate low-cost, tax-deductible financing — avoiding the need to liquidate appreciated assets and trigger additional capital gains taxes in order to pay the bill.

Outcomes

~$485K
In tax savings across federal and California
$1.8M
Vacation rental appreciated from $1.5M, generating ongoing cashflow
20 years
Of charitable giving funded through the CLAT
Ongoing
Still a client — refers new clients on a regular basis
"The acquisition was involuntary — he didn't choose the timing. What he could choose was how to respond to it. Four strategies deployed in one tax year cut nearly half a million dollars from his bill and built assets that will benefit his family and the causes he cares about for decades."
— Nirav Desai, Founder, Qubera Wealth Management
Case Study 03

A retired firefighter's 35-year rental — sold tax-free and doubled for income through a 1031 exchange into DSTs

1031 Exchange DST Investing Real Estate Tax Strategy Retirement Income Depreciation Recapture
Client profile
Retired Firefighter, Age 70
Los Angeles · Married

The situation

A 70-year-old retired Los Angeles firefighter had owned a rental property for 35 years — purchased for $35K and now worth $675K. The same tenants had lived there for 15 years, paying rents from the Global Financial Crisis era (2008–2009) that had never been raised. The tenants had also let the yard go and hadn't maintained the property. He was done being a landlord and had accepted an all-cash, as-is offer of $675K. Fully remodeled, the property would have been worth $850K — he thought he was getting a fair deal and was ready to sign.

The problem he didn't know he had

After paying off a $125K remaining mortgage, his net proceeds would have been $550K. But nearly the entire $622K gain would have been taxable — $134K in federal taxes (including pension income) and $69K in California state taxes. A $675K sale was going to cost him $181,200 in taxes, leaving him with far less than he expected. He called us before signing.

What we did

We immediately set him up with a Qualified Intermediary for a 1031 exchange — the only way to legally defer 100% of the capital gains and depreciation recapture taxes. Instead of selling and paying, he rolled the proceeds into four Delaware Statutory Trust (DST) investments, each holding institutional-grade multifamily properties across four different markets. He kept $22K aside for personal use and invested $475K — which, with the leverage built into the DSTs, gave him $930K in real estate purchasing power.

📞

He called before signing — that made all the difference

Had he signed the purchase agreement without first establishing a 1031 exchange through a Qualified Intermediary, the tax deferral would have been unavailable. The QI must be designated before the sale closes. One phone call saved him $181,200 in taxes and transformed a one-time sale into a lasting income-generating portfolio.

Tax exposure — sell outright vs. 1031 exchange

If he had signed and sold outright

Sale price$675,000
Less: mortgage payoff($125,000)
Net proceeds$550,000
Federal taxes (incl. pension)$134,000
California state taxes$69,000
Tax bill$181,200

After 1031 exchange into DSTs

Proceeds rolled into DSTs$475,000
Kept aside (personal use)$22,000
DST purchasing power (leveraged)$930,000
Capital gains tax paid$0
Depreciation recapture paid$0
Tax savings$181,200

Four DST properties — geographically diversified multifamily

🏙️
Kansas City
Missouri
🌳
Atlanta
Georgia
🌊
Long Island
New York
☀️
Kissimmee
Florida

Rental income — before and after

Previous rental — GFC-era rents

Gross rental income$18,000/yr
Less: property taxes & insurance($5,300/yr)
Net rental income~$12,700/yr
Tax treatmentFully taxable
Note: his pension income pushed him into a high tax bracket, meaning even modest rental income was taxed at his highest marginal rate.

DST portfolio — four markets, no management

Annual DST distributions$23,000/yr
Property management burdenNone
Tax treatment~80% tax-free
HowNew depreciation basis
The 1031 exchange into DSTs established a new cost basis and new depreciation — sheltering approximately 80% of the annual distributions from tax entirely.

Outcomes

$181K
In capital gains & recapture taxes completely avoided
$930K
In real estate acquired from $475K invested
$23K/yr
After-tax, nearly double the previous rents
~80%
Of DST income sheltered by depreciation — vs. fully taxable before
"He was ready to sign. One phone call changed everything. We took a tired rental with GFC-era rents and turned it into a professionally managed, geographically diversified real estate portfolio that pays him nearly double — and keeps most of it out of the IRS's hands. His wife told me she's so glad I've been managing their family's money. Their son is now a client too."
— Nirav Desai, Founder, Qubera Wealth Management

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