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Private Annuity Trusts

By
Real Estate Agent with Florida State Realty Group, Inc BK3089599

Do you have a seller than does not want to sell because of capital gains tax? And, they're not eligible for a 1031 tax deferred exchange?

Even high end properties can be sold through this type of program with signifanct savings to the sellers. Additionally, it allows for continual roll overs where the Realtors may earn and still provide for a substantial savings plus to the sellers saving them a tremendous amount of money.

Although, this may appear to be complicated - it is not and it would be well worth the time of most Realtors dealing in expensive properties to learn about this strategy.

It's commonly referred to as a Private Annuity Trust. More information may be found at http://www.napat.org/

This company handles the complexities generally involved.

Comments (3)

Leslie Bloss, Bellevue Real Estate Professional
Bellevue, WA
Thank you Stephen--I am going to look into this.
Oct 04, 2006 06:15 AM
Bill Exeter
Exeter 1031 Exchange Services, LLC - San Diego, CA
1031 Tax-Deferred Exchange Expert

Hi Stephen,

You are probably already aware of this, but the IRS changed the guidelines so that using the Private Annuity Trust (PAT) as a tax-deferral strategy was taken away just a few weeks after you made this post.  The Pat can still be used for estate planning purposes.

Nov 29, 2007 10:06 AM
Stephen McWilliam
Florida State Realty Group, Inc - Fort Lauderdale, FL
ABR, CRB, CRS, GRI

Hello Bill,

Yes. you're dead on accurate - the IRS disallowed the use of PAT just after my posting.  I had I wasn't the cause.

However, as you're also probably aware there is now a Ensured Installment Sale which basically allows for the same tax deferrment.

For those that are not familiar with a EIS they can obtain some information at  http://www.structuredsalespro.com.

Thanks,

 

Nov 30, 2007 01:29 AM