tax deferred strategy: Disadvantages of the Structured Sale Strategy - 07/26/11 01:58 PM
I posted an article last week regarding the Structured Sale tax deferral strategy.  I received a number of private emails requesting more information, including more information about the potential downside and/or disadvantages of implementing a Structured Sale strategy.  These are great questions, of course, and an important part of your due diligence process. 
Disadvantages of the Structured Sale Strategy
The first (and major) disadvantage is that the Internal Revenue Service has not issued any guidance or rulings related to the Structured Sale at this point in time. 
The second is that Structured Sales are drafted pursuant to Section 453 of the Internal … (5 comments)

tax deferred strategy: Great to Meet so Many of our ACTIVE RAIN Buddies in San Diego at the NAR Convention - 11/15/09 04:02 PM
Well, it was a last minute decision on our part to participate as an exhibitor and to attend the National Association of Realtors Convention (NAR Convention 2009) in San Diego, California this year.  We realized that our real estate businesses were beginning to pick-up slightly and are showing signs of increased life, so we decided that it was time to get back into the trade show exhibition game.  And, the NAR convention is less than ten minutes from our national corporate headquarters, so we just had to exhibit this year. 
It was challenging to pull our exhibit booth together at the last minute … (2 comments)

tax deferred strategy: Who Moved Your Cheese, and What Can You Do About It? - 10/31/09 12:52 PM
We are all looking for ways to increase our incomes, diversify our businesses, expand our operations, and add value-added services to retain existing clients, just so we can survive during this current real estate cycle that we find ourselves in. 
Real estate agents and brokers who can reinvent, redesign, and regroup their real estate businesses will be successful in surviving this current real estate cycle.  Those who can not do so may not survive to see the full recovery that already appears to be in progress. 
Who Moved My Cheese?
This discussion reminds me of a great little book that I read years … (0 comments)

tax deferred strategy: New Tax Court Memorandum Supports Arms Length Private Annuity Trusts - 12/06/08 05:22 AM
In a recent surprise ruling by the United States Tax Court, the US Tax Court held that the taxpayers could defer the payment of their capital gain taxes through the transfer of appreciated property in exchange for a Private Annuity Trust.  However, the structure in this particular case was different than the Private Annuity Trust structure that was more commonly used. 
Tax Court Memorandum
The Tax Court Memo (TCM 2008-269) was filed on December 3, 2008, and ruled that "pursuant to Rev. Rul. 69-74, 1969-1 C.B. 43, 43-44, when a taxpayer exchanges appreciated property for a private annuity, "[t]he gain should … (1 comments)

tax deferred strategy: Defer Payment of Capital Gain Taxes on Sale of Business with Deferred Sales Trust - 12/03/08 01:44 AM
Sell a Company; Pay Capital Gain Taxes
Business owners or investors face the daunting problem of dealing with capital gain taxes when they dispose of business interests or company assets, including the sale of real estate.  Their company has probaby grown with all of their hard work over the years and is now worth substantially more than what they have invested into the business.   Now the increased net value or capital gain will result in capital gain taxes when they sell of the business interest or company. 
Keep What You Have Built
Careful planning for the ultimate capital gain tax so … (12 comments)