Tax Risks in Promoted Installment Sale Transactions



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Credit Details
Credit Hours:
Specialty Area:
Taxation Law
Credit Type:
Original Air Date:
June 4, 2024
Accredited In:

You may be able to self apply for credits in states not listed. BHBA provides CLE accreditation as described above. 

About the Program

This presentation focuses on intermediary installment sales (IISs). These are marketed transactions involving a seller who is prepared to sell an asset to a buyer for a stated price. The promoter introduces the seller to an intermediary, who offers to (i) buy the asset for a note in the same amount, and (ii) sell the asset to the buyer for that price in cash (which can then be invested into some other income-producing investment).

The way in which seller benefits from these arrangements differs depending on the transaction. In one popular variation, the “Monetized Installment Sale” (MIS), the intermediary refers the seller to a third-party lender to obtain a loan for close to the same amount of the sale, and all three parties agree to an escrow process whereby seller’s interest income on the note is paid from intermediary to seller’s escrow account, which is ultimately forwarded to another escrow account to pay seller’s loan payment to lender.

IISs are marketed as a tax deferral strategy, and the result approximates a tax-free exchange, like a 1031 exchange but available for non-real property. The panel will discuss the recent proposed regulations on MISs, current enforcement by IRS, and possible alternative approaches to IISs generally.

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Meet the Speakers
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Andrew L. Gradman


Partner Falcon Rappaport & Berkman LLP

Andrew is a Partner and co-chairs FRB’s Taxation Practice Group. He advises clients on a wide range of federal and international tax matters, including deferral and characterization of income; partnership taxation; corporate taxation; and Opportunity Zones. He frequently represents closely held family businesses, real estate developers, and cannabis clients. He also has extensive experience in estate and gift tax planning.

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Jessica Monroe, Esq., CPA


Founding Attorney Tax Law Care

Jessica is an attorney and C.P.A. with over 20 years of business experience. Jessica’s background in accounting provides her with a unique perspective, allowing her to fully analyze the financial as well as the legal implications of a transaction. As such, Jessica’s practice focuses on business transactions, tax planning, and tax resolution. Jessica is dedicated to her clients, focusing on communication and trust within the attorney-client relationship, thereby maximizing the value she provides.

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Lou Weller 


Managing Partner of Weller Partners, LLP

Lou Weller is Managing Partner of Weller Partners, LLP, a boutique law firm specializing in income tax planning for real estate transactions. Lou formerly served as National Director of Real Estate Transaction Planning at Deloitte Tax and is recognized as one of the leading national authorities on tax planning for real estate transactions, particularly in using like-kind exchanges and other means of deferring gains on real estate sales. Lou is a frequent speaker at tax institutes and conferences, is lead author of the treatise: Real Property Exchanges, 3rd Edition and has been widely published in the tax press, quoted on real estate tax subjects in national periodicals and newspapers and serves on the editorial boards of several national tax publications, including serving as editor of Real Estate topics for the Journal of Taxation. He has held leadership posts in the American Bar Association Taxation Section, the California State Bar Tax Section and the Taxation Section of the Bar of San Francisco, is a Fellow of the American College of Tax Counsel and has been listed for more than 30 years in The Best Lawyers in America. He received a B.A. in political science from Yale University and concurrent J.D. and Masters in Public Policy degrees from the University of California, Berkeley.

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