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The structured sales blog. Information about structured installment sales and resources for structured installment sales of low basis high value businesses,real estate, real property, structured sales annuities and treasury funded structured sales
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Structured Settlement Quotes Form (Secure Form) Click Here If You Are Currently a Party to a Personal Injury or Wrongful Death Law Suit or representing, or insuring one of the parties. This link is NOT intended for people who already have structured settlements. You can also use this form to request more information or get quotes for structured attorney fees, employment related structured settlements, structured oil & gas lease bonus payments, structured celebrity endorsement fees, structured property installment sales, structured business installement sales, structured real estate commissions, jackpots and lotteries and other opportunities to use a non qualified assignment
Questions? Call John Darer at 888-325-8640
A structured installment sale is an established method to dispose of highly appreciated property, which in 2013, is generally accomplished with a non qualified assignment and funded with United States Treasury obligations held in trust. Following is a helpful diagram which help to explain the structured installment sale.
For more information about Structured Installment Sales please click here or contact John Darer at 888-325-8640
High value real estate and a low cost basis equals capital gains problem.
What can you do to mitigate the problem?
Comparing Structured Sales Versus Traditional Installment Sales
An Installment Sale is a time tested and approved method of deferring capital gains.
An installment sale is generally a "disposition of property where at least 1 loan payment is to be received after the close of the taxable year in which the disposition occurs. [see 26 USC § 453]
Despite its long use, it has never been as popular as alternative methods of capital gains deferral such as Private Annuity Trusts and 1031 Exchanges.
The Structured Installment Sale (also known simply as a Structured Sale), which has been around since about 2005, improves on the traditional installment sale by eliminating the three main risks associated with installment sales:
Creditworthiness of the buyer: Most Buyers are not as creditworthy as a major trust company, let alone the US government. A TFSS-I Structured Sale, funded with US government obligations, creates a vastly superior obligor for an installment sale that a Seller can feel secure about, knowing their future payments are assured.
Early payoff risk: If a Buyer is doing quite well they may wish to payoff the installment note early. While a Seller could try to prevent this, there is virtually no legal way to prevent a Buyer from paying off the installment note early, triggering capital gains tax on the entire amount received by the Seller, thus defeating the very thing the Seller wants to avoid by doing an installment sale. Such a risk does not exist with a Structured Installment Sale.
Forfeiture risk: If a Buyer is not doing well financially they could default on the installment note. The Seller can foreclose on the property, but it is highly probable that the business or property has As installment sales enjoy a renewed interest due to rising capital gains taxes, the Structured Sale should likewise find new popularity with Buyers and Sellers.
For more information about using treasury funded structured installment sales for your real estate sale/purchase, please contact structured Sales expert John Darer CLU ChFC CSSC RSP CLTC at 888-325-8640 (203-325-8640) in CT.
We work with sellers and buyers and their respective representatives.
Thanks to Doug Brand for his assistance in this post.
With Allstate's March 2013 withdrawal from both the structured settlement and structured sale marketplace, structured installment sales can no longer be placed with Allstate International Assignments, Ltd. For alternatves, including Treasury Funded Structured Sales, please contact John Darer CLU ChFC CSSC RSP CLTC at 888-325-8640 (Call 203-325-8640 within Connecticut)
Midwest Trust has announced that it will accept structured/installment sales
cases using non qualified assignment to Treasury Funded Structured
Settlements International (TFSS-I). Periodic payment obligations
assigned to TFSS-I are funded with obligations of the United States
1031 Exchange Fallbacks and Boots
Structured Installment Sales for Property
Structured Installment Sales as a Business Exit strategy
installment sale is an exit strategy for property or business owners facing
capital gains exposure from high value properties or businesses in which there
is a low cost basis*. Payments can be customized for tax deferral to match the seller’s cash flow
needs and bring enhanced security to an installment sale through the ultimate
backing of a major American life insurance company. A structured sale can be used as a fall back to a 1031 Exchange.
Real estate agencies and
brokers and business brokers who earn contingency fees have an opportunity to
structure their fees and do their own income planning.
For more information about structured sales and how to implement a structured sale, please contact structured sale expert John Darer at 888-325-8640.
*Basis (or cost basis), as used in United States tax law, is the original cost of property, adjusted for factors such as depreciation. When property is sold, the taxpayer pays/(saves) taxes on a capital gain/(loss) that equals the amount realized on the sale minus the sold property's basis. Source: Wikipedia
Those who buy cheap top soil can't expect to bear fruit. An article entitled " Structured Sale Annuity Tax Minimization Methods" was recently posted on a website called New York Life Annuities, which uses the URL www.newyorklifeannuities.net, yet appears to have nothing to do with New York Life Insurance company, one of the oldest and most respected life insurance companies in the world.
Furthermore, New York Life Insurance Company does not issue structured sale annuities. At this time a structured sale annuity is only available through appointed agents of Allstate Life Insurance Company and Allstate LIfe Insurance Company of New York via theAllstate International Assignment Ltd. non qualified assignment facility
The registrant of the website is in Jakarta, Indonesia. To the best of this author's knowledge, structured sales are not found outside of the United States.
Structured sales are an improvement on the installment sale method of disposition of real estate of business interests.
Structured sales expert John Darer of Stamford, Connecticut discusses how the use of a structured installment sale can a useful way to defer capital gains for New York City, Westchester, Long Island, Fairfield County and other Connecticut sellers of low basis/ high value real estate or business interests.
Real Estate agents and brokers who earn contingent commissions also have a unique way to plan for their futures or smooth out cash flow
They sold a business for $14 million in 1998 and are now broke having "faced temptations to indulge, with the complexities and pressures of new wealth. And a pounding recession pummeled the value of their real estate and new financial investments, rendering their properties unaffordable. The fortune evaporated in little more than a decade, according to The New York Times' Geraldine Fabrikant, in a story published November 29, 2010 (See Family's Fall From Grace s Swift and Hard)
In 2010, selling business owners can enter into a structured installment sale, which can serve to functions: (1) mitigate capital gains taxes in year one and earn interest on the amount that would otherwise be going to taxes in year one (2) mitigate dissipation risk by providing a guaranteed income stream for a period of years, or for life.
A partial structured sale is also possible as is an innovative non annuity deferred payment facilty geared for structured sales, where the timing of installment payments is fixed, but the amount distributed from a managed account is based on a determinable formula.
For more information about structured sales please contact John D. Darer, CLU ChFC CSSC RSP at 4structures.com, LLC at 203-325-8640 (toll-free outside of CT at 888-325-8640)
Constructive receipt of income should be avoided if one wants to conclude a successful structured sale of a low basis/high value business or real estate.
The doctrine of constructive receipt permits the government to tax income before that income is actually received. The doctrine says in part that, even though you may not have the proceeds of your sale physically in your hand or in your bank account, the fact that you could have had it if you had simply requested it, means that for tax purposes, you did have it. For example, if you sign a sales contract that calls for a single cash amount (i.e.does not spell out the specific installment payments) and you deliver the signed document to the buyer.
A Structured Sale is a valuable tool to assist in disposition of real estate in situations where §1031 exchanges prove to be a hindrance.Structured Sales help mitigate the amount of equity subject to the current tax on business or property sales that qualify for installment treatment (pursuant to IRC §453).
For more information please contact John Darer, CLU ChFC CSSC RSPtoll-free at (888)325-8640