How It Works
The 537 Installment Sale Trust is a proven, IRS-compliant strategy for deferring capital gains taxes when selling appreciated assets. Here is how the process works from start to finish.
Free Consultation
We review your specific situation — asset type, tax basis, timeline — and determine whether a 537 IST is the right strategy. There is no cost or obligation for this initial conversation.
Trust Establishment
An independent trustee establishes the Installment Sale Trust with proper legal documentation. The trust is structured to comply with IRC Section 453 and all applicable IRS regulations.
Asset Sale to Trust
You sell your appreciated asset to the trust in exchange for an installment note. This is a bona fide sale at fair market value, documented with independent appraisals when required.
Trust Resells the Asset
The trust resells the asset to the end buyer at market value. Because the trust purchased the asset at full fair market value, there is no taxable gain on the resale.
Proceeds Are Invested
Sale proceeds are held and invested by the trust according to the trust agreement. The independent trustee manages these investments with full transparency and regular reporting.
You Receive Installment Payments
You receive regular payments (monthly or quarterly) over the term of the installment note — typically 15 to 30 years. You are taxed only as principal is returned to you, spreading the capital gains liability over time.
Key Benefits
Tax Deferral
Capital gains are recognized only as principal payments are received, spreading your tax liability over 15–30 years.
No Reinvestment Required
Unlike a 1031 Exchange, there are no requirements to reinvest into like-kind property or meet strict deadlines.
Predictable Income
Receive regular installment payments on a schedule you can plan around — monthly, quarterly, or annually.
Any Asset Type
Real estate, businesses, stocks, cryptocurrency — the 537 IST works with virtually any appreciated capital asset.
Full Transparency
Independent trustees provide regular statements and full visibility into all trust activity and investments.
Audit Support
Every engagement includes comprehensive documentation and audit support at no additional charge.
See Your Potential Savings
Use our free calculator to estimate how much you could save, or schedule a consultation to discuss your specific situation.