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When is it too late to use an Ensured Installment Sale (structured sale)?
By mauch | February 21, 2007
I’ve been speaking to many property sellers recently; however, a conversation with one in particular made me want to write this post.
The seller I was speaking to is in his 70’s and is selling his fractional ownership in several multi-unit properties that he has held for 20 years. He actually already has a buyer lined up, which has signed a purchase and sale agreement. So… is it too late to use the EIS?
The answer is NO! As long as the sale has not yet happened and money has not changed hands the EIS can still be used. This particular seller wants to use the EIS to help fund his retirement and pay for his wifes medical bills. He doesn’t want to mess around with finding a good investment broker who can invest his money for him… he simply wants a safe and secure stream of income that will be around for as long as he will.
So, I’ll be meeting with this seller next week and helping him restructure the P&S agreement to fit in the EIS and get his the capital gains tax deferral and security he wants. Of course, using the EIS isn’t as simple as just restructuring the P&S agreement, but the beauty of it is that we take care of all of the work for you!
If you or a client are even thinking about using the EIS as an exit strategy I would advise that you contact us as soon as you can so we can ensure that there is enough time to structure the deal.
We look forward to working with you and good luck planning your next exit!
Topics: Random |