I am NOT a CPA or an Attorney. I have posted about these vehicles a long time ago but do not recall the response. Similarly the IRS may have tightened up on the rules… Ask your CPA or a trust attorney about a private annuity trust. Basically these are vehicles for highly depreciated properties that enable potential sale of the property and a massive tax deferment. The property is transferred to a trust. The sales proceeds go to the trust. The money is in the trust and can be invested to earn mo money. You have to take an annual payout at which you are then taxed. As you can see this is a very nice way to defer taxes, and earn income on the nut.
Note this is HIGHLY speculative on my part. I FULLY EXPECT other posters here to blow this out of the water or that the IRS has clamped down on these vehicles. Also this is something that is highly specialized. Of course now I just reread your post and see that you have already sold your property. So this is now a moot post as you would need to move it to a trust prior to the sale. Also the private annuity trust is highly specialized… oh well… I will not delete this…
If you are gonna 1031 make sure the funds go to the accomodator… etc… dont screw that up…also if your gonna 1031 do it with the knowledge of future depreciation and that you will simply ride out the storm.
Personally I have missed the boat many times on pocketing alot of cash simply to avoid paying the government. Seeing as the tax rate in the years ahead WILL BE MUCH HIGHER (another speculative statement but I believe this to be true) then it is now, it may not be a bad idea to pocket the cash now…
Do you think taxes will be lower in the next administration?
