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An Alternative To 1031 Exchange
If you want to do a 1031 exchange but cannot find a property within the set time frame, you could go in for a structured sale annuity or ‘ensured installment sale. A Structured sale Annuity is a capital gains tax deferral tool that enables the seller to gain benefits that other sales and capital gains deferral methods do not offer. Wikipedia.org reports:
A structured sale is a special type of installment sale pursuant to Internal Revenue Code Section 453. Installment sales permit sellers to defer gains on the sale of a business or real estate to the tax year in which the related sale proceeds are received. Structured sales allow the seller of an asset to pay taxes over time while having the payments guaranteed by a high credit quality alternate obligor, who accepts assignment of the buyers periodic payment obligation. Transactions can currently be done as small as $100,000.
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