Thinking of Selling Your South Jersey Property?For over 20 years, I've helped homeowners navigate the selling process. Depending on your situation, the best option may be to maximize your sale,
Structured Installment Sales
Dated: October 7 2024
Views: 337
Attention: Vacation Home Property Owners
Are you hesitant about selling your 2nd home because of getting hit with a potentially large capital gains tax bill?
Find out how to defer & reduce long-term capital gains taxes when selling your property.
Most folks aren’t aware of this potential tax savings option. It’s called a structured installment sale, which allows home sellers to defer some or all of the gain from a property sale. The home sale works like a traditional sale with a few extra steps. Instead of taking all the proceeds in one lump sum, the seller can receive some of the funds at closing and the remaining funds in periodic payments over a prearranged period, which defers the tax liability into the years the funds are received.
Because taxes would then be paid based on the income received each year, this structure allows home sellers to defer their capital gains tax and potentially decrease the overall tax liability on the sale. This results in a tax-smart stream of guaranteed income.
Home sellers can choose how much money they want to receive upfront, the duration of the payments, and the amount received monthly, quarterly, or annually.
At closing, the sellers collect the proceeds they want to receive immediately. The remaining is placed in an annuity issued from a triple-A-rated insurance company (like Met Life), guaranteed to paid out over time.
You can download a report from Metlife briefly explaining the process by clicking here.
I hope this information was insightful. I aim to help home sellers keep more of their equity and give less money to the government. If you have any questions or want an updated equity review for your property, please call or text me at 609-675-4686.
** Disclaimer: I am a realtor in Cape May County, NJ. I’m not a CPA and do not give tax advice. This brief video is for informational purposes only. Please consult with your CPA for tax advice regarding your unique situation.
Stephen Ruffer
I help property owners sell for top dollar and with less hassles! Flexible Commission PlansAsk about our CASH OFFER ProgramEasy-Exit Listing Agreement:Home Preparation Assistance....
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