Articles Tagged with IRC 453

September 25, 2019

Save capital gain taxes when selling your home or real estate especially in Northern California – Use an Installment Sale or Structured Sale under Internal Revenue Code Section 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).

Paul J. Lesti

Paul J. Lesti, CSSC, RSP, MSSC is the President and CEO of Lesti Structured Settlements, Inc. He has served as an expert witness in Structured Settlements, Economics, and Periodic Payment of Judgments. He is the author of Structured Settlements 2d, published by West - Thomson Reuters. Paul is a member of the National Structured Settlement Trade Association and the Society of Settlement Planners. He is a founding board member of the SSP. He holds a degree in Economics from the University of California, Berkeley, the NSSTA certification as a Certified Structured Settlement Consultant, CSSC, developed in conjunction with the executive program at the University of Notre Dame, the designation of a Registered Settlement Planner, RSP, through Texas Tech University, and Master Structured Settlement Consultant, MSSC, by NSSTA in cooperation with The University of Notre Dame, 2015.