IRC Section 453 regulates what’s known as an Installment Sale, which allows for partial deferments of Capital Gains towards future taxation years for up to 30 years.
There are many ways to structure an Installment Sale, and it can be a highly valuable asset when looking to retain your current income level tax bracket or are wanting to pay your Capital Gains in installments spread out through many years.
Unique IRC 453-based structures are utilized to achieve capital gain tax deferral and potentially estate tax relief for clients. The Deferred Sales Trust (DST) is a specialized type of Installment Sale under IRC Section 453. Offering diversification and liquidity, Deferred Sales Trusts have a long track record of success and have withstood scrutiny from both the IRS and FINRA.
Successful use of these structures require a team of experienced professionals whose collaboration is critical to its success.
Primary Installment Sale Benefits: