Structuring a Real Estate Installment Sale: Tax Benefits and Pitfalls, Depreciation Recapture
Note: CPE credit is not offered on this program
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will provide tax & finance counsel with the tools to structure installment sales of commercial real estate. The panel will examine the potential advantages and pitfalls of installment sales, and discuss the complexities that arise when dealing with monetized installment sales.
- Statutory requirements of installment sales under IRC 453 and 453A
- Sale must have "economic substance" under IRC 7701(o), not solely to avoid tax
- Seller must be a "non-dealer" of the respective property
- Related party purchasers: What constitutes a related party
- Unrelated third-party purchasers
- How a typical installment sale works
- Purposes and benefits of entering into an installment sale
- Role of bank, wealth management firm, and financial institution as an unrelated third-party buyer
- Factors leading to disqualification of Installment Sale treatment under IRC
The panel will review these and other important issues:
- What are the advantages of an installment sale as opposed to a conventional sale of real property?
- What are the holding requirements for unrelated party purchasers under IRC Section 453?
- How is depreciation recapture calculated in an installment sale?
- What value can a financial intermediary earn in facilitating an installment sale?
- When will a transaction be disqualified from treatment as an Installment Sale under the IRC?
Elizabeth A. Dunn, CPA, P.A.
Ms. Dunn has extensive experience in a national environment as well in the Southeast. She has brought not only her... | Read More
Ms. Dunn has extensive experience in a national environment as well in the Southeast. She has brought not only her experience in both the audit and the specialized tax divisions of Ernst & Young Co. international accounting firms and formerly as a Tax Partner in a South Florida regional accounting firm but also five years experience at the divisional headquarters of the financial service giant Merrill Lynch. In her capacities at Merrill Lynch and also a Super-regional bank she was responsible for extensive national corporate finance department functions, evaluating and providing current and prospective financial data for top executives.Close
Mr. Rostoff focuses his practice on land use, zoning, all facets of real property law, and corporate law and... | Read More
Mr. Rostoff focuses his practice on land use, zoning, all facets of real property law, and corporate law and governance. He has represented residential and commercial condominium boards, negotiated the purchase and sale of industrial, commercial, and residentially zoned parcels, as well as counseling sole proprietors through multi-layered business entities in corporate structuring and operations.Close