Structuring an Installment Sale

When selling a business or highly appreciated real estate, the challenges everyone is faced with are constantly changing due to changes in the Tax Laws, especially as they relate to Capital Gains Taxes. People do not understand the pitfalls of capital gains taxes between selling an asset outright as opposed to selling on an installment basis. Those of us with clients who own a business or highly appreciated real estate, whether it be a commercial property or their own residence, know that clients sometimes do not want to sell because of the capital gains taxes they will incur when they actually sell it. What if you could show your clients a way to sell their business or property and reduce their capital gains tax liability and potentially eliminate it in some cases? This course, presented by retirement planning attorney Joseph Adelizzi, offers both a refresher on the basics of capital gains taxes and the tax treatment when selling a business or highly appreciated real estate. It discusses the application of tax-favored use of a Structured Installment Sale to accomplish enhanced distributions that put more money into sellers' pockets when they actually sell a business or highly appreciated real property. For both experienced and new practitioners, this pulls back the curtain on the tax-favored use of a Structured Installment Sale when clients sell a business or highly appreciated real estate.

Learning Objectives:

1. Examine the laws in the Internal Revue Code that allow for the establishment of a Structured Installment Sale of a business or highly appreciated real estate
2. Understand some of the benefits of establishing a properly structured installment sale that may be used for selling a business or highly appreciated real estate on a tax-favored basis.
3. Examine the various tax rates, and the various sections under the Internal Revenue Code that allow for installment sales, and funding techniques to reduce or eliminate capital gains taxes
4. Review case studies of certain planning ideas are demonstrated and distributions from plans are illustrated to show the difference between taxable and nontaxable strategies
5. Review some of the problems and challenges associated with selling a business or highly appreciated real estate and the adverse Capital Gains tax treatment most sales are subject to upon liquidation and distribution