Tuesday, July 28, 2009

When Does a Self Directed Installment Sale Make Sense?

How do you know which capital gains tax saving strategy to choose when you don’t know much about any of them?

The next couple of emails will talk about when a particular strategy might make sense. You may or may not recognize your own situation because there is never one size fits all but I’m hoping getting down to basics might shine a little light on the subject.

Here are some reasons to consider a Self Directed Installment Sale

* Your desire is to maximize the amount of return over time to you and your family and a 1031 exchange is not a good or possible option for you

* You desire the maximum amount of flexibility in setting up how you receive an income stream

* You are looking for safety of return, a decent interest rate and a dependable income for a fixed amount of time

* You want the possibility of being able to cancel the income and take a remaining lump sum without major consequences in the future in case of unforeseen circumstances or emergency need

* You have no major wish to give a portion of your proceeds to charity- your family and heirs are most important

* You may have reason to defer taking any income for up to 10 years and wish to maximize future income for when you do retire and defer paying the bulk of the capital gain until a later date

* You don’t need a tax deduction to offset higher ordinary income tax rates in the year of sale

If some of the above reflect your needs, and you have a current sale pending, fill out the Confidential Questionnaire at www.savegainstax.com and I will contact you to discuss further.

Paula Straub

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