Defer Capital Gains without a 1031

4 Replies

I work as a financial advisor for a number of families with large real estate positions. A number of years ago, one of the families decided to sell a highly appreciated property. Their 1031 upleg went kaput at the last second. They called me in a panic about how to pay the taxes. I went to work and found a trust system that allowed them to defer their capital gains. It was similar to a 1031, but without all the time sensitive requirements.

How often to realtors lose out on sales due to capital gains objections?

Is it a relatively common objection?

Scott it seams like you're just here to pitch us on Monetary installment sales for your first post. Do some searching around the forums- there have been quite a few posts on them recently.

@Natalie Kolodij

I did look back a number of pages (admittedly only 5 or 6) and saw that installement sales were mentioned a number of times. However, this wasn't an installment sale, although it pulled from IRC Section 453. Their trust currently functions similar to a mix of a 1031 and an installment sale.

My reason for posting is that I never pursued marketing the trust after that initial emergency. The agent that introduced me to Bigger Pockets said that more agents would be interested in something like this. As I'm not in real estate sales, it seemed reasonable that my first query would focus on the level of need/interest in the real estate community.