An installment sale is a type of sale in which the buyer pays the seller in installments over time, rather than in a lump sum payment. In the United States, these sales are governed by Internal Revenue Code (IRC) Section 453, which outlines the tax implications of installment sales for both buyers and sellers.
Tax Strategy
Tax Deferrals for Short-Term vs. Long-Term Tax Deferrals: Why It Matters
The federal government considers anything you own or use as a capital asset, including your financial investments. In other words, it has a monetary value. If you sell these assets, the difference between the price you paid for it — adjusted to reflect valuation changes since purchase — and the sale price is a capital gain or loss.
Tax Tips for the New Year
As the new year rolls in, it’s time to start thinking about your taxes. You may think the time has passed to alter how much you owe on your tax bill. However, there are a few steps you can take after the first of the year that may make a significant difference in what you owe the government.
What is an Estate Tax Freeze?
An estate tax freeze is an asset management strategy by which you transfer ownership of some of your assets to your family members or other beneficiaries without triggering capital gains tax liability. Actually, the more appropriate term is estate freeze because what you’re doing is “freezing” the value of the transferred assets at their current fair market value. Their future appreciation will be attributed to your beneficiaries, not you. An estate freeze also gets the transferred assets out of your estate, thereby decreasing its value and the estate taxes it will have to pay upon your death.
What Will You Experience After Implementing the DST?
Learn what you’ll experience when you implement the Reef Point Deferred Sales Trust (DST) before selling one of your highly appreciated asset. This safe, legal, tested and proven tax strategy can save you hundreds of thousands of dollars in capital gains and income taxes while providing you with many additional benefits, including the retirement income you desire.