Maximizing the Value of Your Sale

Beyond an Outright Sale or a 1031 Exchange

There are many ways to structure the sale of a property besides an outright sale. Installment Sales and 1031 Exchanges are methods that are widely known and used for their ability to defer taxes.  But neither is ideal when a seller wants immediate liquidity at closing.

The Enhanced Installment Sale is a method to sell property that combines the tax deferral of installment sales with immediate tax-free liquidity at closing.

In 1987 Congress added a special provision in the Internal Revenue Code that specifically permits the favorable tax treatment of this method to be applied to the sale of farms, ranches, timber, and other agricultural property.  However, it is not widely known largely due to the small number of financial institutions willing to facilitate the transaction and to relieve the seller of key financial risks.

Millions of dollars in taxes on the sale of agricultural property could be saved each year if sellers and their advisers were aware of the strategy.

Farm Exit Solutions, Inc. helps to reduce the tax due on sale and to and arrange for tax-free liquidity to those who need it.

Contact Us

To learn more, contact us to have a conversation about your circumstances and discuss how we may be able help improve the financial results of an upcoming transaction.