July 2019 Bar Bulletin
By Jack H. Gruber
When a client sells an asset, there are two basic options for dealing with any tax obligation: pay the tax or defer the tax. One must then determine which of the core choices best fit his needs?
Cash Sale: The seller pays the tax in the year that the sale was consummated.
IRC 1031 Exchange; IRC 1033 Exchange: The seller defers tax obligation through the exchange of property. The exchange uses a Qualified Intermediary (QI). Alternative: Delaware Statutory Trust (DST).
IRC 453 Installment Sale <$5mm; IRC 453(A) Installment Sale >$5mm:Taxes are due in...