Section 453 Tax Deferral Strategies

Our Section 453 tax deferral strategies have a 20+ year track record of successfully deferring taxes roughly 2500 times. Our largest transaction to date is $120 million with a tax deferral of $50 million.

Our strategies can be used with any type of real estate including land, commercial, farms, ranches, vacation homes or high end residential properties. Whether you are a commercial real estate broker in Los Angeles, a ranch broker in Waller Texas, a farm broker in Burlington Colorado or a high end residential broker in downtown Manhattan, Beverly Hills or the Hamptons, our tax deferral strategies can be a powerful tool in your briefcase when the sale of one of those great properties creates a large tax liability to your sellers.

How we defer taxes (pdf)The next generation of 1031 exchangesUsing Section 453 to defer taxes (pdf)

Differences between Section 453 and Section 1031

  • Section 1031 is a continuation strategy and Section 453 is an Exit strategy.
  • No QI needed.
  • Section 453 has none of the Section 1031 limitations
  • No 45 or 180 day periods under Section 453
  • Section 453 has no “like kind” requirements
  • Section 453 can create renewed depreciation schedules
  • Section 121 exclusion

Don't forget the words of an old cowboy who once said...

“I’ve led more cattle drives than I care to remember. I have chased and fought the bad guys all over the wild west as a member of the 7th Calvary. I searched for gold in Alaska and married Maureen O’Hara twice in the US and even in Ireland. I fought at the Alamo and in the Civil War. I also fought at DDay, Midway Island and Iwo Jima. And best of all, I met Ricky, Lucy, Ethel and Fred. I felt comfortable doing all this knowing that David was deferring my taxes when my properties were sold, keeping me properly insured and making sure my retirement plan was properly managed.” – John Wayne