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266. 7 Exit Strategies To Destroy Capital Gains Taxes When You Sell Your Next Property

Tax Smart Real Estate Investors Podcast

NOTE

Monetized Installment Sales in Real Estate Transactions

Monetized installment sales in real estate transactions involve selling a property to a third party on an installment basis, receiving upfront cash by obtaining a loan from a bank against the installment sale. This results in deferring capital gain recognition while accessing the full sales proceeds immediately. The IRS heavily scrutinizes monetized installment sales, listing them on the dirty dozen list and as a listed transaction due to the tax deferral aspect. This practice is discouraged due to the potential tax implications and the avoidance of immediate capital gain recognition.

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