M-453 Tax Mitigation

Newly Revised Internal Revenue Code § 453

Now Allows You to Defer Your Long-Term Capital Gains Taxes for 30-Years

-A 1031 Rescue Plan-

M453 TAX DEFERRAL STRATEGY

Defer the Tax and Keep Your Cash With a Monetized Installment Sale.

Sell your high-value asset, obtain cash equal to 93.3% of the sales proceeds, and defer your capital gains tax for up to 30 years. 

Applies to any asset with capital gains*

  • Business

  • Commercial or Multifamily Real Estate

  • Farm or winery

  • Primary residence or 2nd home

  • Intellectual property

  • Other than publicy-traded securities.

IRS-ACCEPTED

M453 – Tax Deferral Strategy capital gains tax is enabled under Sec. 453 of the Internal Revenue Code.

The overall structure of the Monetized Installment Sale has been judged acceptable by the Office of Chief Counsel of the IRS in Memorandum 2012340F released August 24, 2012

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TIME – TESTED

These public companies have successfully used the Monetized Installment Sale transaction structure to defer capital gains in amounts ranging from $24 million to $1.4 billion. The transactions, as reported to the SEC, occurred between 1999 and this year.

A MONETIZED INSTALLMENT SALE

is a way to structure the sale of an asset with a low cost basis relative to its sales price. ​

You can walk away from the closing with cash in hand, and up to 30 years to pay the capital gains tax due on sale. ​

It’s your choice: 

Pay the tax today in present dollars,

OR Pay the present value of the future tax 30 years from now.

Commercial Real Estate

Multi-Family
Real Estate

Agricultural
Property

Business

DEFER THE TAX AND KEEP THE CASH

SAMPLE TRANSACTION

Sale of Veterinary Practice

Veterinarian sells his practice for $2,450,000, a gain of roughly $1.4 million, which would have cost him about $500,000 in capital gains tax. 100% of gain was deferred. He nets $2.29 million in cash at closing.

Real Estate Investors Exit the Market

Elderly couple sought relief from maintenance and management of their $25 million in apartment building assets. Deferred $12 million in capital gain, netting $2.8 million more than if they had sold for cash and paid the tax.

Winery Owner Liquidates

Retired executive turned around a struggling winery and harvested his results several years later, deferring $3.4 million in capital gains and netting $4.6 million he used to seed his next venture.

Rescue of a Failing 1031 Exchange

Professional real estate investor underestimated the time to find a replacement property in a 1031 exchange. Bailed out before the deadline by converting to a Monetized Installment Sale, avoiding a disastrous capital gain and obtaining cash she used to shop for another property at her leisure.

The information in this website is for AGENT USE ONLY and NOT FOR PUBLIC USE. The Life Equity Group is not a Registered Investment Advisor, Broker/Dealer, Financial Analyst, Financial Bank, or Securities Broker. Nothing herein is intended to constitute an offer, or the solicitation of an offer, to buy or subscribe for any securities to any person in any jurisdiction unless otherwise stated. Offers or solicitation which are made to buy or sell any securities are only to be made through the disclosure memorandum, otherwise, which contains important information about risks, fees, expenses and details. Unless otherwise stated, any securities described will not be registered under the US Securities Act of 1933 as amended, or any other act, and only accredited investors defined in 17 CFR 230.501(A) may purchase them. The information contained is not intended to be, and it does not constitute investment advice, tax advice, or an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any security, Company, or Fund.