How Do You Account For and Report Installment Sales?
taxable Settlement CONSULTING
Structured installment sales solutions for people who are selling or buying highly appreciated property with large capital gains exposure with propertyselling or buying property or businesses residents of Stamford, Greenwich, Darien, New Canaan, Westport, Norwalk, Fairfield, Pound Ridge, Manhattan, Brooklyn, Queens, Long Island, Hamptons, Sag Harbor Quogue, Melville, East Hampton, Montauk, Old Saybrook, Staten Island, Bergen County, Franklin Lakes, Great Neck, Kings Point, Bayville, Center Island, Lloyd Harbor, Beverly Hills, San Francisco, San Diego, Chicago, Philadelphia, Saratoga, Teaneck, Syracuse, White Plains, Scarsdale, Bronxville, Rye, Portchester, Harrison, Tarrytown, Bernardsville, Miami, Tappan, Newburgh, Brewster, Ridgefield, Candlewood Lake, Bethel, Wilton, Boston, Springfield, Newark, Newport, Westerly, Morristown, Manhasset, Roslyn, Syosset, Shelter Island, Newport, Bedford, Mt. Kisco, Riverdale, Larchmont, Mamaroneck, Albany, Carmel ,New Haven, Guilford, Cranston, Providence, Old Lyme, Sharon, Orange, Los Angeles, Malibu, San Jose and/or residents of the states of NY, NJ, CT, AL, AK, AR, AZ, CA, DE, FL, GA, HI, IL, IN, KY, MA, ME, MI, MN, MS, NC. NE, NH, NJ, OH, OR, PA, RI, SC, SD, TN, TX, UT, VA, WV, VT, WA, WI. and Washington DC. Some solutions may not be available in all states.
IRS publication 537 is a useful guide to accounting and reporting of installment sales
What is a Structured Installment Sale?
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). A structured installment sale permits sellers to defer recognition of gains on the sale of a business or real property. These gains, including federal, state and Affordable Care Act tax obligations, can be deferred to the tax year in which the sale proceeds are actually received by the seller.
Through our strategic relationships,there are a number of solutions for structured installment sales, which include Treasury Funded Structured Sales as well as solutions that have payment obligations that are fixed guaranteed, or managed through one of Havelet's investment programs designed by leading global investment firms. The client will select the most appropriate portfolio for their circumstances, based on advice from a licensed adviser. Clients may utilize their personal investment advisor provided certain requirements can be met.
Structured Installment Sale v Installment Sale | A Comparison
Depends on Buyer's Solvency?
Structured Installment Sale No
Traditional Installment Sale Yes
Guaranteed Rate of Return?
Structured installment Sale Yes
Traditional Installment Sale Maybe, depends on solvency of buyer
Funded with Structured Sale Annuity
Structured Installment Sale Yes, is an option (indexing option also possible)
Traditional Installment Sale No
Funded With United States Treasury Obligations
Structured installment Sale Yes, is an option
Traditional Installment Sale No
Up to 30 years of payments?
Structured installment Sales Yes
Traditional Installment Sale Maybe, depends on solvency of buyer
Flexible payment schedule?
Structured installment Sales Yes
Traditional Installment Sale Maybe, depends on solvency of buyer or his/her whim on duration.
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Are you a Structured Sale Candidate, or Do You Represent a Candidate for a Structured Installment Sale?
- Are you the owner of highly appreciated real estate or real property?
- Are you a real estate agent or real estate broker representing an owner of highly appreciated real estate or property who would like to sell, but has a big capital gains problem?
- Are you a buyer, or real estate agent or broker representing a buyer, who wants to buy a property from a seller whose big capital gains problem is an obstacle to the sale, or a sale on favorable terms?
- Are you the owner or partner in a business which you started with a modest amount of money that is worth a lot more now and you would like to get out, but are afraid of getting clobbered with the capital gains taxes that would be due on the sale?
- Are you an owner or partner in a business which you started with a modest amount of money, which you (and/or others) built up with your sweat and business acumen, that is worth alot more now and you (and /or others) would like to get out via the installment method, but are fearful of selling your business with a buyer default having the potential to leave you (and/or others) to run a former business that may have lost goodwill or may have been mismanaged, that you really thought you had retired from?
- Are you a business broker, financial advisor, lawyer or CPA who has a client with a highly appreciated business?
What Does a Structured Installment Sale Transaction Look Like?