Breakout Session | Unlocking a Powerful Tax-Deferral Strategy: Understanding Structured Installment Sales under IRC Section 453

For years, real estate professionals and property owners have relied primarily on the 1031 Exchange or Delaware Statutory Trusts (DSTs) to defer capital gains taxes on the sale of appreciated assets. However, a lesser-known yet highly effective alternative has emerged: the Structured Installment Sale, as authorized under Internal Revenue Code Section 453. This innovative strategy provides property sellers with the ability to defer immediate capital gains tax liability while potentially increasing their overall net sale proceeds through the strategic use of customized, long-term annuity payment plans.

This presentation will explore the mechanics of Structured Installment Sales and offer actionable guidance for real estate professionals representing both buyers and sellers. Attendees will gain a comprehensive understanding of how to incorporate this tax-efficient solution into their transactions, including the specific language that should be included in listings, Letters of Intent, and Purchase and Sale Agreements.

Through real-world case studies, we will compare fixed and index-linked annuity options, demonstrate how these tools can be used to meet sellers’ long-term financial goals, and explore their potential to build generational wealth. We will also walk through the documentation required by life insurance companies and the IRS to ensure a seamless closing process.

Don't miss this opportunity to expand your toolkit with a powerful and underutilized tax-deferral strategy.