Structured Installment Sales
A Smarter Way to Receive
the Proceeds From a Sale
A Structured Installment Sale (SIS) is a planning strategy for certain sales of appreciated assets, including businesses and real estate.
Instead of receiving the entire sale price at closing, a seller may choose to receive a portion of the proceeds through scheduled future payments. When properly structured and eligible for installment-sale treatment, this can allow taxable gain to be recognized over time as payments are received.
An SIS is designed to give sellers greater flexibility in how and when they receive the value they have built.
How It Works
Determine your payment needs
Before the sale closes, the seller works with their professional advisors and Ringler to determine how much they want to receive at closing and how much they may want to receive over time.
Establish the installment terms
The buyer and seller agree to a payment schedule as part of the transaction.
Assign the future payment obligation
The obligation to make the future payments is transferred to an independent assignment company, which funds the agreed payment schedule through an approved financial arrangement.
Receive payments over time
The seller receives payments according to the schedule established at closing.
Payment schedules can often be designed around future goals, including retirement income,
major purchases, or other anticipated financial needs.
Why Timing Matters
A Structured Installment Sale generally must be established before the transaction closes and before the seller receives the proceeds.
If you are considering the sale of a business, real estate, or another appreciated asset, the best time to explore your options is early in the transaction.
Explore Your Options With Ringler
Ringler can help you understand how a Structured Installment Sale works, model potential payment schedules, and coordinate with your attorney, CPA, and other professional advisors.
Considering a sale? Talk with a Ringler consultant before you close.
Ringler and its consultants do not provide tax or legal advice. Structured Installment Sales may not be appropriate or available for every transaction. Sellers should consult their independent tax, legal, and financial advisors regarding their specific circumstances.
