# Installment sale

**URL:** <https://discussion.mainstreetbusinesspodcast.com/t/installment-sale/93>\
**Category:** Tax Strategies\
**Created:** [September 29, 2022, 7:02am UTC](https://discussion.mainstreetbusinesspodcast.com/t/installment-sale/93 "2022-09-29T07:02:56Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![Evelyn](https://avatars.discourse-cdn.com/v4/letter/e/838e76/32.png) [@Evelyn](https://discussion.mainstreetbusinesspodcast.com/u/Evelyn)\
**Post date:** [September 29, 2022, 7:02am UTC](https://discussion.mainstreetbusinesspodcast.com/t/installment-sale/93/1 "2022-09-29T07:02:56Z")

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What are the capital gain tax if selling an investment property when using an installment sale? The property (Calif) is in an Trust (4 beneficiaries). Filing taxes under the Trust for past 5 years since parents passed. We plan to open up escrow Oct 5, 2022  
We are looking for the best strategy to save on federal and state taxes  
Sale Price **2.5** million  
cost basis **1.1** million  
Down payment **1.25**  
8% interest only for 5 years  
Balloon payment **1.25** million

Also wondering as Trustee… Could I transfer deed/title of the property to one of the beneficiary (with the other 3 signing affidavits to transfer)  
The Capital gain tax would 15% on a personal tax bracket vs  
Capital Gain Tax 20% Trust bracket  
Huge tax savings on the interest payments collected.  
Personal Ordinary income tax bracket would 24% versus 37% Trust tax bracket

Your advice is greatly appreciated!