Building with Columns

Articles Tagged with IRC 453

One can now sell a home or real estate and get a tax-deferred, guaranteed payment stream for retirement or for any other purpose.

This is an Installment Sale under Internal Revenue Code Section 453 that has been used for years.  Now, a new feature to this Installment Sale transaction allows the seller to receive the future payments guaranteed by a highly regulated trust company or a large life insurance company.  This is called a Structured Installment Sale or a Structured Sale.

A Structured Installment Sale allows the seller to avoid large tax increases, i.e. 15% to 20% for Federal capital gain taxes, 9.3% up to 13.3% for California capital gain taxes, and 3.8% for the Affordable Care Act.  Some taxpayers may even be subject to the Alternative Minimum Tax (AMT).