You report your profits to the IRS, and this allows you to defer your capital gains taxes upfront on the proceeds. This form is required for anyone who has realized a gain on their property by using the installment method (IRC 453). Once the sale of your asset is completed, you will then use Form 6252 to report your installment sale income to the IRS. ![]() The deferred sales trust also makes use of IRS Form 6252. MORE INFORMATION THE DEFERRED SALES TRUST & IRS FORM 6252 Investing all of your sale proceeds allows you to indefinitely defer your capital gains tax. If you receive a portion of your principle, you will need to pay capital gains tax on that portion only. You can also choose to receive a portion of your principle every month. When you sell your asset to the deferred sales trust, you can choose to invest all of your principle and receive the interest from your investments every month. RECEIVE A PORTION OF YOUR PRINCIPLE + MONTHLY INTEREST (YOU WILL ONLY PAY CAPITAL GAINS TAX ON THE PORTION OF YOUR PRINCIPLE) RECEIVE A PORTION OF YOUR PRINCIPLE UPFRONT (YOU WILL PAY CAPITAL GAINS TAX ON THAT PORTION ONLY) RECEIVE THE MONTHLY INTEREST ON YOUR INVESTMENTS (YOU WILL DEFER ALL CAPITAL GAINS TAX) ![]() MONTHLY PAYMENT OPTIONS FOLLOWING YOUR 453 INSTALLMENT SALE
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