Very often, the 1031 Exchange is described as the only tax deferral solution for real estate owners. Unfortunately, it does not work for someone who wants to get out of the real estate market.

The Challenges

 Real Estate Investors are notoriously tax averse—there are a couple of techniques they use to dispose of a property and defer tax:

•  §1031 Exchange—This time tested approach often works beautifully. But occasionally, an investor when up against the 180 day deadline is forced is close on an undesirable, over-inflated property, simply to avoid paying capital gains taxes.
   
•  Installment sale— A seller may get assets out of the real estate market and spread out the tax burden by entering into an installment sale. Often that seller would prefer not to bear the risks associated with carrying the paper. These risks include the risk of default and the possibility of repossessing a property in a falling market.

A New Solution

The Structured Sale is a technique that is built on the principles of the installment sale, without the inherent risks. It utilizes reliable techniques , which have proven effective over a number of years for producing win-win advantages for all parties.

Guaranteed installment sale OR a §1031 Rescue

•  Sell interest in real estate for a guaranteed stream of payments that can be designed in almost any way imaginable.
   
•  Seller is taxed on gains they actually received using the installment sale rules.
   
•  In certain circumstances, IRS regulations allow coordination between 1031 and installment sale. This is valuable when the 1031 fails.