// --> // --> San Francisco Real Estate - Residential: Private Annuity Trusts may provide enormous financial benefits - Part 1

Monday, September 18, 2006

Private Annuity Trusts may provide enormous financial benefits - Part 1

Over the next several weeks, we’ll be investigating a powerful seller’s resource, and highlighting one of our resources, a national leader in helping owners and investors maximize the profits from their real estate. A Private Annuity Trust is a type of special sale that allows you to pay capital gains taxes over many years rather than immediately at the time of sale.

If you own highly appreciated real estate, we know that you may be reluctant to sell because of the large tax bill you think you’ll face. This hesitancy may be especially true if you own investment real estate, because you may have to pay both capital gain taxes and depreciation recapture taxes associated with the sale. We know that the thought of selling real estate, and paying 20%, or even 30% of the sale price in taxes to the government has stopped many real estate investors from selling their properties.

We think there may be a solution you’d like to investigate: The Private Annuity Trust.

Benefits include:
  • Lifetime deferral of current capital gains taxes
  • A lifetime income from the trust, starting when you decide you need it to
  • Flexibility in how the trust is invested
  • Asset protection from lawsuits and creditors
  • The ability to borrow from the trust
  • The assets pass to your beneficiaries, estate and gift tax free

Private Annuity Trusts may provide potentially enormous financial benefits for tax-conscious real estate and other high­ly appreciated asset owners who are, or would like to be, considering selling. By transferring the property assets into a Private Annuity Trust prior to the sale, the owner can defer all taxation, and create a lifetime income stream.

For more information, or for a FREE, 10 page Tax Savings Analysis on your property, contact Gary Katz at QFN – 800-224-1053 – or email Gary@QAplan.com.

- Betsy Hartwell - Quantum Advisors

*This is the first in a series of articles - to be continued...

posted by SFResidence.com @ 8:06 AM

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