What is a structured installment sale?
Instead of receiving one lump sum, all parties agree to periodic payments for a stated number of years as a condition of the property sale. The periodic payment obligation is then transferred to for example MetLife Assignment Company, Inc. (MACI) by the Buyer, who pays the full premium to cover the payments. MACI takes the Buyer’s premium check for the periodic payments and purchases an annuity from for example Metropolitan Tower Life Insurance Company (Met Tower Life). Met Tower Life then issues the scheduled payments to the Seller on behalf of MACI. Both entities are wholly owned, U.S. based subsidiaries of MetLife, Inc. and, as such provide great confidence for all parties.
If you’re considering an annuity, it’s crucial to work with Annuity Pros to evaluate your goals, time horizon, and the specifics of each product type. The right annuity, used the right way, can make all the difference in your financial future.
Individuals and businesses who would like to connect with Annuity Pros can get in touch instantly via our enquiry form.
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Why choose a structured installment sale
Selling a real estate property or business can have significant tax implications. When a seller receives their sales proceeds in a lump sum, they might face not only capital gains taxes, but also net investment income taxes and state income taxes, which are due in the year of the sale.1
Our Structured Installment Sale solution can help reduce taxes on the proceeds, while providing a stream of guaranteed income over time to help secure their financial future.1,2
What are the advantages of a Structured Installment Sale?
Tax Benefits
Deferral and potential reduction of capital gains tax, Net Investment Income Tax (NIIT) & state income tax1
Guaranteed Income
Conversion of proceeds into a guaranteed income stream, immune to market volatility and performance2
Trustworthy
Payments secured by a financially sound and trusted company3
Tax Implications of Selling Real Estate with a Structured Installment Sale
A structured installment sale (SIS) allows the seller of real estate, property, or agricultural land to be paid in future installments over a period of time, rather than a one-time lump sum. Because taxes will then be paid based on the income received each year, this structure helps the seller defer their capital gains tax and potentially decrease the overall tax liability on the sale.
Tax Implications of Selling a Business with a Structured Installment Sale
A structured installment sale (SIS) may offer beneficial tax treatment when selling a business because the taxes are paid as installment payments over a period of time, rather than being paid entirely in the year the business is sold. This allows sellers to defer and potentially reduce their capital gains taxes and other tax obligations by spreading the payments out over a longer period.
If you’re considering a structured settlement, structured installment sale or annuity, it’s crucial to work with Annuity Pros to evaluate your goals, time horizon, and the specifics of each product type. The right annuity, used the right way, can make all the difference in your financial future.
Individuals and businesses who would like to connect with Annuity Pros can get in touch instantly via our enquiry form.
