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New Development in 1031 Exchange Safety

February 23rd, 2007 · by Bob Meyer · No Comments

By Bob Meyer

The popular 1031 exchange has just been made safer for sellers of appreciated real estate. Sellers performing a 1031 exchange can now worry less about not finding a suitable property in time thanks to a powerful tax deferral tool called the structured sale (aka Ensured Installment Sale).

The 1031 exchange has been a staple in the real estate investing arena for years and has allowed savvy property owners to defer capital gains tax and build their real estate empires. While the majority of 1031 exchanges happen without a hitch, there are many sellers who must take a capital gains hit because they do not find a “suitable” property before the deadline.

A national capital gains tax deferral firm, Settlement Professionals Inc. (SPI) of West Linn, Oregon, has a solution and backup plan for sellers who want to use the 1031 exchange but also want to minimize their risk. According to Jack Meligan, president of SPI, “The 1031 exchange is an extremely powerful tool for sellers of appreciated real estate; however, I all too often hear the horror stories of sellers who have to fork over a $500,000 check [or more] to the IRS when their deal falls through and they have no viable backup plan in place.”

SPI, a national leader in the structured annuity field, unveiled the new Ensured Installment Sale (aka Structured Sale) in 2006 to much acclaim from the real estate investing and tax deferral community. “The Ensured Installment Sale is the perfect backup plan for the 1031 exchange,” says Meligan. With the Ensured Installment Sale, sellers who’s 1031 exchange fails can defer and reduce their capital gains taxes even though the sale fell through.

Although the Ensured Installment Sale is a powerful backup plan for the 1031 exchange, it is not meant to perform all of the functions of a 1031. Mr. Meligan states, “The Ensured Installment Sale is not a one size fits all solution, but it is a real life saver for those who are caught staring a huge capital gains tax payment in the eye and would rather pay it over a period of years rather than right now.”

To learn more about the Ensured Installment Sale and how it can act as a no cost safety net for the 1031 exchange visit http://www.structuredsalespro.com or call Settlement Professionals Inc. at 1-800-666-5584.

Settlement Professionals Inc. (SPI), a national company, was founded in 1987 and is based in West Linn, Oregon (a suburb of Portland). SPI’s founder, Jack Meligan, has been a top annuity specialist for over 19 years and is seen as one of the nation’s preeminent experts in the structured annuity field with many published articles in high profile publications.

SPI’s main business is structured settlement planning for plaintiffs in injury cases around the U.S.; however, has began to focus on the Ensured Installment Sale (Structured Sale) since its development by Allstate Insurance in 2005.

This entry was posted on Friday, February 23rd, 2007 at 8:42 am and is filed under Best & Brightest Barter, Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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