Over the last decade, most property owners have enjoyed unprecedented growth in the appraised values of their property. These gains in value have been a boon to the real estate brokerage community as many owners have used this opportunity to buy up, size down, acquire rental property, purchase vacation homes or otherwise jump into the real estate fray.
While the large appreciation gains have created a boon for realtors it has created new problems for sellers who want to cash out. Many sellers have capital gains that exceed their allowable tax free capital gain on primary residences or are faced with huge capital gain liabilities on second properties. Until now, sellers of real estate could only use a Private Annuity Trust to cash out and defer taxes. The recent demise of Private Annuity Trusts has really limited the options for those looking to cash out. A Structured Sale is a safe viable alternative to the now defunct Private Annuity Trust for those who wish to cash out but defer taxation of the gains.
Structured Sales give realtors the opportunity to add even more value to the transaction by involving a Structured Sales Specialist. The transactions are quite simple to put into place and benefit all of the parties. The opportunity for a seller of highly appreciated property to achieve tax deferral of the sales proceeds is an attractive option for many of today’s sellers. Having the knowledge about this important tool may help you close sales you never thought you could have in the past.
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