Structured Sales of real estate, offering the ability to pay ZERO taxes in the year in which you sell a highly appreciated real estate asset, are still a highly secure way to defer taxes into future years. In this update Mark Wahlstrom provides a 2018 market perspective on how sellers and brokers can use this highly effective tactic to defer all or part of their capital gains tax bill into future years, all while securing those future payments with a US Treasury backed payment arrangement. Plus, are the rumors of new life insurance companies entering the market going to make this an intriguing growth market opportunity for structured sale specialists and commercial real estate brokers. Watch this video or go to wahlstromandassociates.com to learn more.
Does it make sense to use 1031 exchange tactics to "wait out" the current void in the structured sale market caused by the departure of Allstate Financial as an underwriter of structured sale annuity funding programs?
Mark Wahlstrom, President of Wahlstrom & Associates, examines both concepts, the 1031 exchange and the structured sale, each of which have been around for decades and used successfully in the pre-real estate melt down era of the late 1990's and mid 2000's. However, over the last 5 to 7 years, the collapse of both residential and commercial real estate, coupled with annual concerns about potentially increased capital gains rates, combined to largely smother the potential of this once promising concept of tax deferral and cash flow planning using structured sales.
Interestingly, evidence so far in 2013 suggests that interest in structured sales is surging as real estate prices have begun to rebound at the exact same time as the first substantial increase in capital gains and ordinary income tax rates became law in 2013. More sellers of real estate have been looking for options to spread out the tax hit in a secure fashion and structured sales appear to fill a growing need of tax planners, CPA's and real estate investors of all sizes. In this weeks video Mark examines some timely ideas for those who have pending sales or potential sales and are wondering what options there might be in the interim.
Mark Wahlstrom is the President of Wahlstrom & Associates and one of the nations leading experts in structured sales, Oil & Gas lease bonus structures, structured attorney fee's and mass tort settlement administration.