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Is the Structured Sale legal?? - Yes, and here’s why…
By mauch | March 16, 2007
We have spoken to several sellers and professionals advisors lately who have mistakenly lumped the Structured Sale into the category that the Private Annuity Trust now falls into…
… NO LONGER VALID BY THE IRS AS A CAPITAL GAINS TAX DEFERRAL TOOL….
Well, before this completely wrong assertion causes sellers and professional advisors to look away from the Structured Sale, I want to set the record straight.
First off…
- YES, the Structured Sale (Ensured Installment Sale) is completely legal and is supported by multiple IRS rulings and case law.
- NO, the Structured Sale is not the same as a Private Annuity Trust.
- NO, the Structured Sale is not an exchange of an asset for an annuity
No matter what you may have heard, the Structured Sale is a completely viable capital gains tax deferral tool and is being used every month by sellers all around the country (Yes, even since the October 2006 ruling).
We just wrote up a page addressing the actual IRS rulings and case law that supports the Structured Sale. In addition, explanations of why the Private Annuity Trust is no longer valid and how the Structured Sale adheres to all current IRS rulings can be found on that page. Simply click the link below to learn exactly why the Structured Sale is legal, and is not affected by recent IRS rulings that stopped the Private Annuity Trust.
Structured Sale IRS Rulings and Information
If the new page does not address your questions or concerns, please feel free to give us a call at 1-800-666-5584.
Talk to you next time…
Topics: IRS Rulings, Legal issues, deferring tax, Structured Sale |
April 14th, 2007 at 1:08 am
What about Private Annuity Trusts that are already in progress when the IRS changed the rules? Please respond.
April 14th, 2007 at 1:26 am
To my understanding, any PAT’s that were instituted before the October 18, 2006 date were grandfathered in. If it closed after the October 18, 2006 deadline, it is ineligible for tax deferrment.
Regarding ones that were in progress, if it didn’t close prior to 10/18/06, I believe it is void… but before you take that for gospel, let me check with our tax attorney.
Mac, send me an email at: mauch@structuredsalespro.com so I have your email and can email the answer to you once I hear back from our attorney I’ll get back to you.