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Editor: Daniel J. Alvarez, J.D.
Profession: Settlement Planner, Millennium Settlements

Alternative Tax Deferral in Real Estate Transactions

Category: Tax Deferral Strategy

The real estate market in the State of Florida has seen unprecedented growth over that last ten years. Many
real estate professionals are selling homes that have dramatically increased in value. This growth has led to
new problems for sellers. Many sellers have a capital gain that exceeds their allowable tax free capital gain
on primary residences or are faced with huge capital gain liabilities on second properties. There are several deferral mechanisms that all real estate professionals should have in their toolbox. Some of the most
commonly used tax deferral mechanisms are, 1031 Exchanges, TIC's and Private Annuity Trusts. These
three devices allow clients to dispose of property without triggering a taxable event. Each of these devices
has its inherent benefits and drawbacks, but another method has seen a recent spike in achieving this goal is
the Structured Sale.

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