Structured Sales: Close Deals and Create Life-Long Clients


When selling businesses, homes and commercial real estate, individuals look for ways to defer taxes. The Structured Sale is a proven approach that allows the seller to receive the proceeds over a number of years, thus allowing for growth on a pre-tax rather than after-tax basis. In addition, the structured sale provides a guaranteed payment stream.


Eliminate Risk

Our Structured Sales approach permits your client to receive payment in future tax years without worrying about the creditworthiness of the buyer. In order to eliminate this risk, the sale will be structured so that the installment payments will be funded with an annuity and guaranteed by an A. M. Best A+, XV rated life insurance company.

The Structured Sale utilizes reliable techniques that have proven effective for decades for producing win-win results for all parties.


Advantages For The Seller

• Tax deferral – money is taxable only as actually received, resulting in less being lost to taxes;

• Guaranteed rate of return;

• Protection with an A. M. Best A+, XV rated life insurance company guaranteeing all payments;

• Guaranteed income stream – your investment is not at risk from market volatility;

• The buyer’s current and future creditworthiness is not a factor;

• Ability to tailor an income stream for a fixed period, life or to create a legacy for children or grandchildren.

The Structured Sale

For a sale to be considered a structured sale, it must be a sale of qualified property where the seller receives at least one payment after the tax year of the sale. Each installment payment consists of the following components:

• Non-taxable recovery of the investment;

• Taxable gain;

• Interest.

Design Mechanics

• The sales agreement between the buyer and seller includes language allowing for an installment sale;

• All payments guaranteed by one of the nation's largest and most secure financial institutions;

• Terms of an installment agreement govern payment schedule;

• The seller alone is responsible for reporting any applicable structured installment sale income to   the Internal Revenue Service and should  consult with his or her own independent tax advisor for details.
   

Creative Capital Inc. (CCI) makes it easy for you to turn deals into celebrations.

Call 800 EASY CCI (800-327-9224) if you have questions or to arrange a consultation.

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