Ways to Defer Capital Gains

If you’re looking for ways to defer capital gains tax here are some clever ways from a recent Forbes article by contributor, Peter J. Reilly. For the article, Reilly focuses on pure deferrals rather than directed investments.

Reilly analyzed three deferral techniques when it comes to large capital gains from the sale of a business, commercial real estate, or high-end property. Reilly says, “these techniques either keep you in financial assets or let you do whatever you want with the proceeds.”

Reilly mentions deferred sales trusts, structured installment sales and monetized installment sales. When it comes to structured installment sales, or SIS, Reilly spoke with Mark Wahlstrom of Walhstrom & Associates. Wahlstrom & Associates has a 15-year history in structured installment sales.

As Reilly explains it a SIS is a straightforward transaction - you enter into an installment sale with a buyer, then the buyer pays a financial institution to assume responsibility of the note. Major players were insurance companies, but now the product is mostly available through trust companies. Reilly says using an established intermediary means you can likely trust it will be done correctly as long as you are okay with low returns.

Walhstrom has produced dozens of videos on the subject, which can be found here on thesettlementchannel.com.

Posted on July 12, 2019 .