537 Installment Sale Trust
Defer 100% of capital gains taxes while converting to passive income.
What is a 537 IST?
The 537 Installment Sale Trust is an IRS-approved strategy under IRC Section 453 that allows property owners to defer capital gains taxes by selling their property to an irrevocable trust in exchange for an installment note. The trust then sells the property to the end buyer and reinvests the proceeds, generating a passive income stream for the seller.
Key Benefits
Defer 100% of capital gains taxes
Convert property equity to passive income
No 45-day or 180-day deadlines
Works in all 50 states
IRS-approved since 1986
Over 3,800 successful transactions
Zero IRS audits in 20+ years
Estate planning and wealth transfer benefits
How It Works
Consultation
We review your property, tax situation, and goals to determine if a 537 IST is right for you.
Trust Formation
An irrevocable trust is established with an independent trustee and customized terms.
Installment Sale
You sell your property to the trust in exchange for an installment note with defined payment terms.
Property Sale
The trust sells the property to the end buyer at fair market value.
Reinvestment
The trust reinvests the proceeds into a diversified portfolio to generate income.
Income Stream
You receive regular installment payments, deferring capital gains taxes over the payment period.