One of the main points of making a real estate investment in the state of California is to achieve as much appreciation profit as possible when selling the asset. Yet the capital gains tax, that you are required to pay if realizing a profit, significantly reduces the amount of revenue that you can actual net from a sale. Smart investors, who truly build wealth, have the ability to considerably delay paying those taxes when selling real estate for profit. The good news is that you too can increase your net worth by deferring the capital gains tax through a little know, yet time tested strategy called Installment Sales.
A Tax Deferred Sales, LLC proprietary Installment Sale transaction works for both large and small real estate investments, and unlike 1031 tax deferred exchanges, you can actually realize some liquid assets out of the deal. If you are familiar with, or have ever experienced a 1031 transaction, than you know how difficult it is to complete one. First of all, you need to identify a replacement property within a maximum of 45 days from the time you close on your sale and hand over a deed. That is a difficult task in its own right. As an added obstacle, you must close on the purchase of the replacement property within a maximum of 180 from the time you sold your investment property.
Although you may be able to accomplish that feat in ordinary times, the economic shutdown has made it next to impossible. That is exactly why saving a failing 1031 transaction has recently become so important. A Tax Deferred Sales, LLC Installment Sales can accomplish just that and can also be utilized instead of a 1031 exchange, as a 1031 Alternative.
Installment Sales transactions are typically structured by the specialized Tax Deferred Sales, LLC Buyer, as an Installment Sale purchaser. As Tax Deferred Sales, LLC is managed by a highly experienced tax deferral LLM Taxation Attorney, its transactions are in full compliance with the Internal Revenue Code.
Tax Deferred Sales, LLC can also potentially come into an Asset Sale transaction between a Seller of Assets and a Buyer, where the Buyer typically has an outstanding condition to close such as an outstanding finance contingency. In essence, you can sell your investment property or asset to TDS as the Installment Sale Purchaser, which in turn resells the property to a Buyer. TDS as Installment Sale Purchaser, instead of paying the entire amount of money that is owed to you, is legally obligated to pay out to you you in installments, which is the legal mechanism for tax deferral. The installments are made on a monthly or yearly basis for the amount of years that you decide upon. You only need to pay taxes on the money as it is disbursed to you. The disbursements can be used to re-invest in anything that you choose, deposited in your bank accounts, or be used to pay for whatever you would like. Deferring capital gains taxes from real estate investments is one of the best ways to build true wealth.
If you would like to learn more about how a Tax Deferred Sales, LLC Installment Sale can be of great benefit to you in the state of California, or would like to get the process started please contact Tax Deferred Sales today. TDS has specifically developed a proprietary tax expertise Installment Sale structure to save failing 1031 exchange transactions. Our team of experts specializes in providing customized strategies that delay Capital Gain tax and other negative tax impacts. TDS takes great pride in assisting sellers of appreciated assets in deferring the capital gains tax that greatly enhances the ability to grow your net worth. Our company was founded by a LLM tax attorney with over 20 years tax deferral experience and expertise with a singular focus on assuring sellers delay of taxation.