STRUCTURED INSTALLMENT SALE (IRS code 453)

The STRUCTURED INSTALLMENT SALE (IRS code 453) is just as valuable to investors as it is for homeowners. Especially as an alternative to a failed 1031 Exchange. When the Exchanger signs a contract with the person acquiring his property, a provision is put into the Exchange Agreement that in case he cannot close on another property, the buyer will allow a Structured Installment Sale to replace the 1031 Exchange. The Structured Installment Sale allows the postponement of up to 37.1% of capital gains taxes. The process is the same as it is for owner-occupied property. The net sale proceeds are put into an Annuity at close of escrow. Payments to the client are structured to provide cash flow, minimize capital gains taxes, and fund additional investments. We work closely with the client and their trusted advisers to meet their financial goals.