Structured Installment Sale: The Weapon to Reduce Taxes!
Tax Implications of Selling Real Estate & Small Businesses
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How to turn a real estate sale or small business into a stream of guaranteed income
Structured Installment Sale
How can a Structured Installment Sale be Used When Selling Real Estate?
A structured installment sale can be used to sell a variety of property types. An SIS allows the seller to be paid in future installments over a period of time, rather than a one-time lump sum. Because taxes would then be paid based on the income received each year, this structure allows the seller to defer their capital gains tax and potentially decrease the overall tax liability on the sale. This results in a tax-smart stream of guaranteed income.
For a transaction to qualify as a structured installment sale, it must involve the sale of an eligible property in which you receive at least one payment after the tax year of the transaction. Property types can include (but aren’t limited to):
- Personal property (such as your home)
- Commercial real estate
- Rental property
- Vacation home
- Agricultural land
- Farmland
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