Everything we've published on legally deferring and reducing the tax when you sell a business, property, or appreciated asset, sorted so you can find your situation fast.
Not sure where to start? Try the capital gains tax calculator to see your number, then dig into the guide that matches your sale.
Send me the sale price and rough basis. Within one business day I'll email you the actual number and the Seller's Guide to §453. If it doesn't fit your deal, I'll tell you that plainly.
No retainer · no obligation. Hans Goldstein, a licensed insurance agent (CA Insurance License #4273294), will contact you and may discuss insurance products, including annuities.
Federal tax on a long-term gain in 2026 is 0%, 15% or 20%, up to 25% on real estate depreciation, plus the 3.8% net investment income tax above $250,000 of income married or $200,000 single (IRS Rev. Proc. 2025-32; IRC §1(h), §1411). Deferral moves that bill into later years, where it is often smaller because less of the gain lands in the top brackets. Deferred tax is still owed; it is paid later, not erased.
1. Installment sale and structured installment sale (IRC §453). Get paid over time and the gain is taxed as each payment arrives. Works for real estate, a business, a practice or land. In a structured version the buyer pays in full at closing and the payments come from an assignment company funded by a fixed annuity, so the seller holds no note on the buyer. The trade-off: payments are fixed and cannot be cashed out early, and it must be in the contract before closing. Section 453 rules.
2. 1031 exchange (IRC §1031). Sell investment real estate and buy like-kind real estate of equal or greater value within 45 days (identify) and 180 days (close); all of the gain is deferred. Real property only since 2018. Structured sale vs 1031.
3. Delaware statutory trust. A passive, fractional replacement property that counts inside a 1031 (Rev. Rul. 2004-86). Same deadlines; illiquid, with sponsor fees.
4. Opportunity Zone fund (IRC §1400Z-2). Reinvest capital gain within 180 days. For money invested after December 31, 2026 the deferral runs 5 years with a 10% basis increase (30% in a rural fund), and growth held 10 years is excluded (as amended by P.L. 119-21, July 4, 2025). You must reinvest cash equal to the gain.
5. Charitable remainder trust (IRC §664). The trust sells without tax at sale and pays you an income stream, taxed as you receive it. Irrevocable; the remainder goes to charity.
6. Deferred sales trust. An installment sale to a third-party trust. There is no IRS ruling or published guidance approving it, and fees run through the trust. How it compares.
7. ESOP sale (IRC §1042). An owner of C corporation stock who sells to an employee stock ownership plan that owns at least 30% of the company after the sale, and reinvests in qualified replacement securities within 12 months, can defer the gain.
| If you... | Look first at | Decide by |
|---|---|---|
| Want out of real estate or are selling a business, and want income over time | Structured installment sale | Before the purchase contract is signed |
| Want to stay in real estate | 1031 exchange | Before closing (qualified intermediary) |
| Want to stay invested but stop managing property | Delaware statutory trust inside a 1031 | Within 45 days of closing |
| Already sold and have cash in hand | Opportunity Zone fund | Within 180 days of the sale |
| Have a charitable goal | Charitable remainder trust | Before a binding sale agreement |
| Own a C corporation with employees | ESOP sale under §1042 | Before the sale |
| Are already in escrow on a 1031 that may fail | Structured installment sale as the backup | Before closing. Once the money is with the qualified intermediary, it is too late |
See your own number first: seller net sheet after tax (cash vs paid over time) or the capital gains tax calculator. Side by side: deferral options compared.
The main legal ways are an installment sale or structured installment sale under IRC §453, a 1031 exchange for real estate, a Delaware statutory trust inside a 1031, an Opportunity Zone fund within 180 days of the sale, a charitable remainder trust, and a §1042 sale to an ESOP for C corporation owners. Each has deadlines that run from the sale or must be set up before it.
Yes. An installment sale, a structured installment sale, an Opportunity Zone fund, a charitable remainder trust and a §1042 ESOP sale do not require buying replacement real estate. Only the 1031 exchange (and a Delaware statutory trust inside one) does.
Deferral is not forgiveness: the tax is paid later. Two federal rules can reduce it for good: a 10% basis increase on Opportunity Zone investments held 5 years, and a stepped-up basis at death (IRC §1014) on property still held.
For a 1031 or a structured installment sale, the structure must be in place before closing. After closing, an Opportunity Zone fund (within 180 days) is the main option left for capital gain.
33 asset-specific §453 deferral guides, each with the exact tax math for your situation and state.
Before you sign anything, run your numbers with someone who structures the deal to cut the tax and hold up in an audit.
Call 213-414-2808 Run the Numbers →
A plain-English guide for sellers on how a structured installment sale defers the tax when you sell a business, practice, or property. It covers the math, the alternatives, and how to tell if your deal fits.
Leave your details and the PDF downloads right away. Within one business day Hans will email a preliminary read on which structure fits your deal. No retainer. On a funded structure, the insurer pays a one-time commission of about 4% of the amount structured to the brokerage firm that places it (Hans’s share is about 2.4%; no trail). It is built into the annuity pricing, not a separate fee.
📞 Hans Goldstein · 213-414-2808 · CA Insurance License #4273294 · Independent §453 specialist · Goldstein & Co. LLC
Hans Goldstein, a licensed insurance agent (CA Insurance License #4273294), will contact you and may discuss insurance products, including annuities.
