The installment sale is another significant technique for deferring  payment of capital gains taxes. Here, sellers elect not only to  sell property but also to put up some or all of the financing needed  to make the deal work. Because the property is being sold now but  paid for later, such deals are called “installment sales.” Where taxes  are concerned, an installment sale differs from the 1031 exchange  because you actually sell the property without getting a new one in  return, but you still defer paying some or most of your capital gains  taxes. Here’s how:

Until you actually receive the profit from the sale of  your property, you don’t owe the IRS a penny. Instead,  with an installment sale you would be carrying the note  (and your profit from the sale) long term and receiving  interest-only payments from the buyer. The idea is to keep  earning a high interest on the taxes due for many years.

By doing this you would delay paying the capital gains  until the contract is complete.  The rules for qualifying for an installment sale were significantly  modified by the Installment Sales Revision Act of 1980. In the  past there were rules regarding the amount of down payment and  the number of years needed to qualify. These no longer exist. The  advantage of an installment sale now is that you are required to pay  capital gains tax only on the amount of the profit you receive in one  year. You pay the balance of the tax due as you collect the profit in  subsequent years.

Emotional compatibility is not a statistic within a range that incorporates the entire population such as an intelligence quota (IQ). It is a matching process. In relationships, each unique individual is matched with another unique individual. There are many types out there. If you find yourself always with the wrong type, get help.

The same is true for investment compatibility. There are hundreds of asset classes. Step 1 discusses the emotional implications of all the major and many minor investment classes. Fortunately, if you find yourself incompatible with the stock market, the chances of finding better investment satisfaction elsewhere are high. In the case of Michael and Susan, once they work on their investment maturity, they will find many asset classes that suit them better than stocks.