The Wolfe Law Group is pleased to announce the launching of our newest website: californiawineexports.us (George Pessin, Managing Director). The website was the result of years of research and includes an all-star team of advisors (see our team).
The goal is to increase California wine exports (currently out of $24.5B in annual CA wine sales, CA exports are $1.4B and though that is 90% of US wine exports, considering 95% of the world’s consumers live outside the US it is only a fraction of potential annual sales of CA wines).
With that in mind we have devised a tax strategy (see our website and my latest ebook, “Tax Planning for US/CA Wine Exports” available on Amazon, which reduces federal income tax on California wine export sales by 25-50% and pre-empts US/Estate & Gift tax on the net- after tax export sales proceeds.
In addition, we are seeking international investors who may obtain a US green card under the EB-5 Investor Visa for a $1m direct investment and the creation of 10 new US jobs (see The Wolfe Law Group, affiliate website eb-5investmentvisas.us, Norman Sam, Managing Director Vancouver, Canada, Hong Kong-China). The investor may invest in a subsidiary export company (owned by the winery owners and the foreign investor).
Our Plan is to contract with international importers in Hong Kong (for Asia), London (for Europe) and Vancouver (for Canada) to buy unsold CA winery inventory (like Charles Shaw and Trader Joes) and arrange the sales in Asia, EU and Canada. The international investor may invest $1m in the winery export subsidiary company (get a green card for them and family) and then facilitate exports of California wines (to their home and other countries). Keep in mind that the growth markets for US wines are outside the US (e.g. China is the world’s biggest market for red wine thanks to their 300m middle class consumers, and “growing”).
We have a relationship with RBC Wealth Management ( a division of the Royal Bank of Canada- the highest credit ranked bank in North America). The international investor may invest in a portfolio of stocks and bonds which may be pledged as collateral for a line of credit tied to LIBOR based interest rates.
The investor may use the line of credit to fund the $1m EB-5 investment (in the California winery export co. subsidiary) and receive a favorable arbitrage (i.e. the earnings on their investment portfolio may exceed their interest payments due on the loan so they receive a “net positive return” yearly). The tax savings on the wine export sales may ultimately pay off their $1m investment so they are in to the investment for “no $” over time.
The financing strategy is based on the Japanese yen carry trade, and is supplemented by the export tax planning under the IC-DISC strategy (for US exports) which includes US income, estate and gift tax planning (please see “Tax Planning for US/CA Wine Exports” co-authored with Ryan Losi, CPA who is a national DISC expert). In addition, the CA winery may pursue the RBC “carrytrade” strategy for them and their family to ameliorate succession issues, expansion needs and operational expenses by “cashing in” on some or all of their land equity and arranging below market LIBOR based credit line financing.
If you are interested, please send me an e-mail and I will refer you to Tracy Pulvers/Alan Sawaya at RBC (world-class investment advisors with whom I have worked with for the last 15 years for domestic and international investor clients).
In addition, for those interested in real estate investment they may consider a sale-leaseback with the winery for all or part of the winery lands (to” unleash the land equity “for the winery owners).
I look forward to hearing from you.