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Many people say, “I want to sell my business (or properties) and
retire”. Now there is a way to sell a business (or a piece of
real estate), defer the capital gain and get a secure stream of
payments to use for retirement or for any other purpose.
This is called an installment sale that been used for years. Now
there is a new way for future tax-deferred payments to the
seller to be funded with an annuity from a large, highly rated
life insurance company. Also a large life company will assure
the future payments, not just the buyer.
The benefits are that are taxable gains are deferred, a large life
insurance company will guarantee the obligor, the seller gets a
guaranteed rate of return, investment risks are minimized, and
there is long term financial security.
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For real estate holders there are several specific advantages. It
allows them to trade the equity in their property (both
residential and commercial) into a secure cash flow, they don’t
have to buy another property to defer capital gains, it relieves
them of property management duties, and they can also defer
capital gains without the risks of a tenancy-in-common property
or a 1031 exchange. Instead of living in or maintaining current
properties that no longer meet their needs, owners can now move
to a property that suits their lifestyle and which is located
where they really want to live. Additionally they can avoid a
reverse mortgage.
The bottom line is many folks want secure, tax-deferred, future cash
payments from the equity in their real estate holdings - not to
buy another piece of real estate. An installment sale will
achieve these goals. Please call today and we can help you do
this.
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