Installment Sales with Liquidity Upon Exit
Defer capital gains tax for 30 years
and receive 93.5% of your net sales proceeds
when you sell real estate, a business,
or other highly-appreciated asset.
Are you facing large capital gains taxes on the sale of real estate, a business, or other highly appreciated asset?
Now there's a way that you can defer your capital gains tax, for 30 years, and simultaneously receive 93.5% of your net sales proceeds in cash at closing. That's cash you can invest any way you wish.
These results are accomplished by using an innovative tax strategy that utilizes a long-term installment contract combined with a tax-free loan.
This strategy has been used by public corporations for over 20 years.
The IRS approved a specific transaction of this type in 2012, which serves as the model for the widely-used deal structure employed today.
Real estate sellers may use this strategy as a lower-risk alternative to a 1031 exchange, or, if they do not intend to reinvest in real estate, to exit with cash in hand yet still defer their gain -- and their tax -- for 30 years.
Sellers of businesses may employ this strategy as part of their tax and exit planning so that they keep significantly more of their hard-earned financial rewards when they choose to sell and retire or reinvest in other assets.