| |
Cash |
1031 Exchange |
Tenants in Common |
Installment Sale |
Structured Sale |
| Defer Capital Gains? |
No |
Yes |
Yes |
Yes - unless buyer defaults |
Yes |
| Defers gains on a residence? |
No |
No |
No |
Yes |
Yes |
| Defers a portion of the sale? |
N/A |
No |
No |
Yes |
Yes |
| Eliminates the risk of buyer defaulting? |
N/A |
N/A |
No |
No |
Yes |
| Eliminates management or investment risks? |
N/A |
No |
No |
No |
Yes |
| Income guanteed by A+ rated life insurer? |
N/A |
No |
No |
No |
Yes |
| Guaranteed rateof return? |
No |
No |
No |
Depends |
Yes |
| Lifetime payment option? |
No |
No |
No |
Not likely |
Yes |
| Custom designed income plans? |
No |
No |
Possible |
No |
Yes |
| Avoids ongoing fees and expenses? |
No |
No |
No |
May require letter of credit |
Yes |
| Avoids buying additional real estate? |
Yes |
No |
No |
Yes |
Yes |
| Buyer also benefits? |
No |
No |
No |
Yes |
Yes |
Note: As of October 17, 2006, the IRS has disallowed Private Annuity Trusts as a means to defer capital gains. This information is not intended to give legal or tax advise. Consult your own advisor prior to entering into any transaction.
