Milestone 453 Plan

When selling a business or commercial property, you can invest the gains from the sale, pre-tax, while receiving payments over time.

Secure. Invest. Grow.

By placing the gains of a business or commercial property sale into a 453 Plan, the proceeds appreciate, tax deferred. This arrangement will allow you to create a long-term strategy to receive your payments when you may have a more favorable capital gains rate.

Steady Stream of Income

You can spread out your gains from a sale over many years. It’s especially useful if you want to establish a reliable source of income for the future and/or to support you after you retire. 

Tax Planning

A 453 Plan can help you minimize the initial tax burden associated with selling your property. When you receive a lump sum payment for a sale, you pay tax on the entire amount in the year that you receive it. With a 453 Plan, you only pay tax on the payments received in a year. Meanwhile, your gains grow in an investment account, tax deferred. 

Starting Point Matters

When investing, your starting point matters. You place gains from a sale into a 453 Plan before paying any tax, allowing you to immediately invest the full amount. But if you receive one lump sum, after paying initial taxes, your starting investment amount will be much lower than the amount you would have for a 453 Plan. 

Using a 453 Plan can be a smart financial decision if you are selling a business or other property. If you are interested in exploring this option further, we welcome you to contact Milestone.