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Seamless execution of a Structured Sale

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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.

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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.

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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.

Property 1=Assignment-1
Property 1=Anuity
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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.

The benefits of a structured sale are clear

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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.

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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.

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Reduce or possibly eliminate federal taxes

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Invest pre-tax proceeds into any liquid asset class

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Predictable & customized payments to the recipient

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20 years’ experience delivering Tax-advantaged deferred compensation solutions

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*Tax-Free liquidity after the sale

Let’s start a conversation today

FAQs

Tax Control Strategies is committed to providing an innovative structured sale solution that can reduce or eliminate capital gains taxes.

Q: What Payment Deferral Options Do Structured Sales Offer?
Q: How Can Your Clients Benefit from Structured Sales?
Q: What Kinds of Assets Make Structured Sales a Smart Choice?
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