I have a large amount of capital losses, which I will never deplete at $3000 per year. I have a very profitable business now utilizing 4 contractors to my business. If I sold 20% of the revenue from my business to someone, could I use that to utilize my capital losses?
Example:
I sell 20% of my business to a third party for $200,000. The capital gain of $200,000 that I would have from that sale would be offset by my capital losses. The third party would then get 20% of the distributions from the business. I assume I will pay more than $200,000 over time to the third party, but it may be worth it for the utilization of the capital losses against income that will otherwise be ordinary income to me.
