1031 exchange services

A private annuity trust (PAT) enables the owner(s) of highly appreciated assets, such as real estate, a business, collectables or an investment portfolio, to be sold without incurring current taxation.

A PAT can defer 100% of the tax due on the sale of an asset, provide a stream of income, and effectively remove the asset from the owner's estate, thus reducing or eliminating estate taxes. With these advantages, a PAT provides an alternative to other methods of deferring capital gains taxes, such as the charitable remainder trust (CRT), installment sale, or tax-deferred 1031 exchange.

Currently PAT's are very attractive to sellers of highly appreciated real estate. A PAT will allow the owner of investment property to defer up to 100% of the taxes without ever having to buy another property. Nationwide Phone 800-593-1031 Why use a 1031
Exchange? The major reason for undertaking an exchange of property,Search. This is very important because good quality investment properties are difficult to locate. The PAT will also allow the seller of a highly appreciated primary residence to defer up to 100% of the taxes as well. This is important because all gains on primary residences over $250,000 for a single person, and $500,000 for a married couple will be taxed if a PAT is not used.

A properly structured PAT involves first transferring the asset to the PAT in return for a lifetime income stream in the form of an annuity. The transfer of the asset is not a taxable transaction. Exchange Specialists:1031 Tax Deferred Exchange.