Sell your business or property. Keep the full proceeds working.
The Capital Gains Deferral Intermediary Trust lets you defer capital gains tax on a major sale, keep 100% of the proceeds invested from day one, and decide when the tax is paid.
20 minutes. If nothing fits, we'll say so.
- 01 Defer up to 35% in combined capital gains tax
- 02 100% of proceeds invested immediately
- 03 Typical sale of $2M+
A big sale can hand a third of your gain to taxes.
When you sell a business or commercial real estate, 20–35% of the appreciation can go to taxes: a 20% top federal rate, a 3.8% net investment income tax, and state tax of up to 12.3% or more. That money leaves at closing and never works for you again.
How it works
Wilson Hand forms an intermediary trust
A non-grantor trust is set up to sit between you and the buyer.
You sell to the trust
Ideally 60–90 days before the final sale, you sell the asset to the trust in exchange for a 25-year installment note at the applicable federal rate.
The trust sells to the buyer
The trust completes the sale and invests the full proceeds toward your long-term goals, working with your advisors.
You decide when to take distributions
The note is a demand note, so you control timing. Tax is recognized as you receive payments, in proportion to what you take.
If no taxable distributions are taken before the trust becomes part of your estate, the tax may be deferred indefinitely.
Is it a fit?
Likely a fit
- A business owner or commercial real estate investor selling a highly appreciated asset
- Sale proceeds of $2M or more
- Facing 20–35% in combined capital gains taxes
- Wants the full proceeds invested immediately and control over when tax is paid
Not a fit if
- You're a dealer in real estate or inventory
- The gain is mainly depreciation recapture or comes from publicly traded securities
- You need all of the proceeds in cash right away
Key benefits
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Defer the tax
Tax is deferred until you choose to take distributions.
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Invest 100% from day one
Nothing is lost to taxes at closing.
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You control timing
Decide when and how much to withdraw.
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Privacy and protection
The non-grantor trust is a separate entity during the sale.
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Combine with other strategies
Pair distributions with other Wilson Hand strategies to reduce the eventual tax further.
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Audit support included
Wilson Hand prepares documentation at the time of the sale and supports you in any IRS review.
Capital Gains Deferral in practice
A Dallas real estate investor sold $5.3M in properties through the trust, deferring $1,526,400 in capital gains taxes while keeping the full proceeds invested and receiving ongoing distributions.
Questions
When should I start?
Before the sale closes, ideally 60–90 days ahead. Once a sale closes, it's too late.
Is this a 1031 exchange?
No. A 1031 exchange requires buying replacement property. This lets you cash out of real estate or a business and invest however you choose.
Are there limits?
Installment sale rules include annual thresholds and an interest charge on large deferred amounts. Wilson Hand reviews these for every transaction.
Selling soon? Talk to us before you sign.
20 minutes. If nothing fits, we'll say so.
The Capital Gains Deferral relies on installment sale rules under IRC §453. Distributions may trigger a proportional share of deferred tax. Results depend on individual facts and current law. This is not tax, legal, or investment advice.