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:
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This entry was posted on Friday, April 18th, 2008 at 10:30 am and is filed under Real Estate, Top Resources. 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.