Derek & Mandy: Building Wealth That Lasts in Park City
By Anthony Turco, Associate
When Derek and Mandy first sat down with us at Park City Wealth Advisors, they were in an enviable position and they knew it. A calculated bet Derek had made years ago on a publicly traded aerospace company had paid off in a meaningful way. They were sitting on $1.2 million in unrealized capital gains.
They were now looking for thoughtful guidance on what to do next.
That’s the kind of clients we love working with. Derek and Mandy are the type of people you genuinely enjoy sitting across from. They are curious, they ask smart questions, and want to learn. And they care deeply about the life they are building together, right here in Park City.
Months ago, they had just purchased a home and were weighing three renovation paths. They had three children they were determined to leave something for. And beneath all of it was a persistent worry that one wrong move could unravel everything they had worked so hard to create. They didn’t need a transaction, they needed a plan built around their actual life.
Starting with the Tax Problem
Left unaddressed, the gain on Derek’s aerospace position would have generated a federal tax bill of roughly $200,000. That was the first challenge we tackled together.
After reviewing the full picture, we recommended that Derek and Mandy retain between $100,000 and $180,000 in the position that had served them so well, enough to stay meaningfully invested without leaving their family’s financial future tethered to a single company.
For the remainder of the position, we introduced them to a long/short institutional investment strategy specifically designed to generate ordinary expenses that offset taxable income. The structure harvests short-term capital losses while keeping unrealized gains intact significantly reducing that $200,000 exposure and adding real diversification at the same time.
Putting Every Tool to Work
We also began exploring a career change for Mandy into real estate. She’d been thinking about it for years but thought it would be a reduction of pay at first and wanted to do what was best for her family. What she didn’t realize that even though there might be a pay reduction there would be a balance sheet increase by Mandy claiming “Real Estate Professional” status on their joint return. When properly established, this designation allows real estate depreciation to offset ordinary income, a powerful lever for a high-earning family in their bracket. We are currently working through whether a real estate license or the professional status hour requirements is the right path for their situation.
Finally, we introduced Derek and Mandy to an alternative real estate fund we felt was a strong fit. The fund operates on a land-leased model; residents own their homes, the fund leases the land beneath them generating a stable, recurring revenue stream. The investment offers a 7% cash-on-cash return and an 18% IRR, with dividends and distributions within 60 days. The depreciation benefits built into the structure work directly in their favor at tax time. For a Park City family in a high bracket looking to diversify, generate passive income, and meaningfully reduce their tax burden, it was a natural fit.
The Moment Everything Clicked
When we sat down to walk Derek and Mandy through the full strategy, how every piece connected and why it was built around their specific goals, something shifted in the room.
They had come in carrying that quiet worry. The fear that one mistake could undo everything. As we worked through each component together, you could see it leaving them.
By the end of the meeting, Derek leaned back in his chair, smiled, and said, “We feel great about everything you have laid out for us and are so excited to work with you.”
We felt exactly the same way.
This Is What We Do
At Park City Wealth Advisors, we work with families who have built something real and who want to make sure it lasts. Derek and Mandy didn’t just need an equity exit strategy. They needed someone who would take the time to understand their complete picture and build something that would carry them forward.
Their renovation is on track. Their tax exposure is under control. Their children will benefit from the foundation being built today.
Now they can focus on what actually matters: finishing their dream home, watching their family grow, and building the kind of wealth that extends well beyond themselves.
