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Monetized Installment Sale (§453)

Sell appreciated asset, get 93.5% cash now, defer gain 30 years.

Overview

Sell to an intermediary on a 30-year interest-only installment note (§453 defers gain over note term). Intermediary lends you 93.5% of sale price via non-recourse loan against the note. You get near-full liquidity today, defer capital gains for 30 years. IRS-scrutinized — use only reputable structures with legal opinion.

Best fit
Business sellersConcentrated appreciated asset holdersPre-liquidity events
Estimated impact
30-year deferral of 20–37% cap gains on entire sale

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