One the Structured Sale annuity is set in place, can I add more money to it in the future?
The Structured Sale annuity is a single premium annuity, which means that it is paid up with one initial premium payment. To follow the IRS installment sale guidelines, sellers cannot add more funds to the annuity because it would then be considered an investment rather than an installment note. Additional annuities can be purchase and put in place in the future under certain circumstances. For instance, you and your buyer agree on installment sale terms of lump sum payments of $300,000 every year for 5 years and you wish to defer all of the capital gains with the Structured Sale. To solve this we will simply direct each $300,000 installment payment for the 5 years to purchase a new Structured Sale annuity with the payment terms agreed upon between you and your buyer. So, you are now able to defer all of your tax… and provide your buyer with better terms. A win-win situation.
