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Picture you in the driver seat steering your clients financial future with the flexibility to defer payments as needed. Structured Sales open up a spectrum of choices for when and how your clients receive money.
Installment Sale Agreement
An individual or business sells a qualifying asset to a buyer for cash and/or a promise of future periodic payments, qualifying as an installment sale under IRC Sec. 453.
Assignment Company
The buyer assigns the payment obligation and sends funds to the Assignment Company. In exchange, the Assignment Company assumes the obligation to make periodic payments as outlined in the Installment Sales Agreement, in accordance with Revenue Rulings 75-457 and 82-122.
Brokerage Account Established
The Assignment Company establishes an investment account with the RIA and deposits the funds for the benefit of the seller. The RIA prepares an IPS aligning with the terms of the Installment Sales Agreement.
Custodian Disburses Periodic Payments
The Assignment Company instructs the custodian to make periodic payments directly to the seller based on the agreed-upon terms of the Installment Sales Agreement.
See how it works for yourself
At TCS, we empower Wealth Advisors with a unique tax mitigation & income planning strategy we've coined a "Structured Sale." We enable pretax investment into nearly any liquid asset class, while you take the lead on tax strategy and investment advisory services. Our exclusive Structured Sale tool reduces or eliminates capital gains and ordinary income taxes, offering a flexible payout schedule for appreciated asset sale and contingent bonus proceeds. This seamless process allows you to concentrate on money management while we handle the execution.
These are benefits competitors can't provide!
The benefits of a structured sale are clear
Capital Asset Sales (subject to capital gains treatment)
When your client(s) want to sell capital assets like private businesses, agricultural land, commercial real estate, high-value items, or face a partial or failed 1031 Exchange, you can optimize their tax outcomes and provide consistent income, ensuring long-term financial security and alignment with their investment goals.
Non-Capital Assets (subject to ordinary tax treatment)
When your clients expect a sizeable contingent bonus, executive bonus, attorney fee, or sale of crops, utilizing an unrestricted deferred compensation tool can optimize tax efficiency and create steady income streams. This approach secures long-term financial stability and aligns with your clients' overall financial objectives.
Provide secure, reliable & customized payments to the seller
Deliver more for your clients
Tax Control Strategies offers Wealth Advisors a seamless process known as a Structured Sale, an innovative deferred compensation tool and exit strategy designed to reduce or eliminate capital gains and ordinary income taxes. This strategy provides a flexible periodic payment schedule for appreciated asset sale and contingent bonus proceeds.
Reduce or possibly eliminate federal taxes
Invest pre-tax proceeds into any liquid asset class
Predictable & customized payments to the recipient
20 years’ experience delivering Tax-advantaged deferred compensation solutions
*Tax-Free liquidity after the sale
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FAQs
Tax Control Strategies is committed to providing an innovative structured sale solution that can reduce or eliminate capital gains taxes.
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