Preserve Your Wealth for Generations by Turning Capital Gains Tax into an Income Source

Offering the #1 Alternative to a 1031 Exchange

Get a Free SIS Trust Revenue Estimator

No1031 offers 1031 exchange alternatives in real estate and tax-deferring options for any home residence, business, investment property, or other highly-appreciated assets. Read more about how our cost-effective solutions may help your situation.

Get a Free Revenue Estimator

No1031 offers 1031 exchange alternatives in real estate and tax-deferring options for a home residence, business, investment property, or other highly-appreciated assets. Read more about how our solutions may help your situation.

What is a Structured Installment Sale Trust (SIS Trust)?

A Structured Installment Sales Trust (SIS Trust) is a trust arrangement that combines special-purpose vehicles with installment sales. This financial strategy is commonly used in property transactions, especially mergers and acquisitions or the sale of a business, to defer capital gains tax over time.

The Structured Installment Sale Trust is 100% IRS-accepted, allows cash liquidity, and has been around since the 70s. No1031.com is dedicated to making the Structured Installment Sale Trust more available to the public as it has been primarily used in M&A and large business deals in the past.

Why Use an SIS Trust?

Defer 100% of Capital Gains

The SIS Trust allows you to defer 100% of your capital gain liability at sale. This additional saving is then invested for a guaranteed 6% payment, turning your taxes owed into an income source.

Allows Basis Withdrawal

Using an SIS Trust allows you to take out your asset's cost basis. This means if you would like to have access to untaxed cash, only the taxable gain will go inside the trust and pay an income

Fully IRS-Accepted

Our CPAs and attorneys have carefully structured the SIS Trust to follow all IRS rules and guidelines. Over our 25 years of structuring ISTs, we're proud to say that we have never received an IRS audit.

Structured Installment Sale Trust Uses

Get an Idea of Your SIS Trust

The Revenue Estimator is a report about your asset, the tax savings, and additional information about the SIS Trust process. Every Revenue Estimator runs a tax assessment on your asset, showing the expected amount of taxes to be paid at closing. This tax assessment is based on the income information provided to us for the report.

The Revenue Estimator was created to quickly compare the difference between using a SIS Trust to a traditional sale. This is a rough comparison and uses conservative numbers. You usually have enough information to fill this report out on your own.

Get an Idea of Your SIS Trust

The Revenue Estimator is a report about your asset, the tax savings, and additional information about the SIS Trust process. Every Revenue Estimator runs a tax assessment on your asset, showing the expected amount of taxes to be paid at closing. This tax assessment is based on the income information provided to us for the report.

The Revenue Estimator was created to quickly compare the difference between using a SIS Trust to a traditional sale. This is a rough comparison and uses conservative numbers. You usually have enough information to fill this report out on your own.

Real Estate Solutions

With a SIS Trust, you're selling your asset to a trust and receiving payments over time. The trustee invests the money from the sale of your asset, aiming to generate a return similar or better to your current property. Similar to market value appreciation in real estate, the total trust value grows in addition to paying you income.

Business Solutions

A 1031 exchange can not be used for business sales. Exiting a business comes with similar or worse tax consequences as selling real estate. The SIS Trust is an excellent tax-advantageous solution for business owners looking to exit. Additionally, it provides a predictable income stream during their retirement years, helping to ensure financial security.

Cryptocurrency Solutions

With the SEC becoming more accepting to crypto, they are expecting more taxes to be paid on their gains. The SIS Trust allows you to turn realized crypto gains into an income-paying asset without having to give up to 40% of your portfolio to the IRS.

Are You a Real Estate Agent, Business Broker, or Insurance Agent?

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SIS Trust FAQ

Can I do this with my own trust?

No, you can not use this for your current trust. Additionally, you can not be the direct trustee of the trust. You maintain control over the trust with the promissory note granted to you at the time of the sale. This note fully protects your assets in the trust and grants you control.

Do I have to put all of my gain inside the trust?

No, we recommend only putting the taxable gain inside the trust. You are allowed to take your basis out, untaxed. If you want a larger, passive income, and do not require a large sum of cash, we recommend putting the entirety inside the trust instead.

What are the downsides?

- You can not be the trustee (giving you better asset protection). The note you hold that collateralizes the Trust gives you every right to control what investments you accept as collateral for your note.

- We cannot allocate more than 50% of Trust money into one investment. As Fiduciaries with management of money inside a Trust, we are held to a higher level of responsibility. Allocating more than half of the principle in one investment is a risk factor that is too high for the Fiduciary standard at our firm, or any other one you choose.

How can I see the money in the SIS Trust?

You can see the funds from the Citi Bank app on your phone, just like having an additional bank account. Withdrawals from principal require documentation since they trigger certificate of receipt, requiring capital gains to be paid.

Can I take the 121 tax exemption out like my basis?

Yes. Married couples receive up to a $500,000 tax break and singles receive up to a $250,000 tax break. For example, you are married and have a $1,500,000 personal residence with a $100,000 basis ($900,000 taxable gain). In this case, you would be able to extract your $100,000 basis (assuming no mortgage) along with the additional $500,000 tax exemption totaling $600,000 getting sent to your bank account tax-free. The rest of the $900,000 capital gain can sit inside the SIS Trust and avoid the taxable event.

if you decide to sell and pay the tax, you will be on the hook for capital gains tax on $900,000 if you're married or $650,000 if you are single. Your capital gains tax bracket is determined by the entire gain before the 121 exemption.

What is a Monetized Installment Sale? (We do not do this)

Monetizing is the act of taking a loan from the installment trust after it is established. This collateralizes the trust in your name, which is illegal since the trustee is technically the "Owner" of the asset. Any loans taken with the trust as collateral are subject to taxation and penalties; therefore, we do not allow them. Monetized Installment Sales are on the IRS Dirty Dozed list and are NOT analogous to Structured Installment Sales.

What if I want Out of the Trust?

At any time, you may leave the trust. By doing so, you are subject to the original capital gains tax you would have paid. This will immediately fulfil the financing agreement and all pre-taxed funds will be sent to you. If you previously performed a SIS Trust with your personal residence, you will still receive the 121 tax exemption ($250,000-$500,000 tax break) at the time of liquidation.

Can I pass the SIS Trust to my heirs?

Yes, the SIS Trust can be passed down from generation to generation. After passing, the SIS Trust receives a step up in basis, granting your heirs the option to liquidate tax-free or continue to grow and collect from the trust.

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