Smart Selling: How a $4 Million Home Sale Turned into $5.6 Million with a Structured Installment Sale

When Jane Doe decided to sell her longtime home for $4,000,000 in order to downsize, she wasn’t just looking to cash out, she was looking to maximize her value and minimize her tax hit.

Instead of taking the full $4 million as a lump sum and facing a steep capital gains tax bill, Jane chose a smarter route: the Structured Installment Sale annuity from MetLife.

📊 The Strategy

Here’s how it worked:

• Home sale price: $4,000,000

• Cash up front: $500,000

• Remainder structured: $3.5 million placed into a MetLife Structured Installment Sale annuity

• Payment schedule: $258,093.14 annually for 20 years (guaranteed)

• Total payout: $5,661,863

• Internal rate of return (IRR): 4.46%

• Tax treatment: She pays taxes only as payments are received, not on the full sale price upfront — which spreads out and reduces capital gains tax liability.

  
  

  

  
  
  
  

  Traditional lump-sum property or business sales result in a large taxable event, especially when there's significant appreciation. But with a Structured Installment Sale you get:

  
  

✅ Tax Deferral

• Income is taxed only as it’s received annually.

• Keeps you out of the top tax brackets in the year of the sale.

✅ Tax Savings

• Potentially reduces overall capital gains tax by avoiding a large one-time hit.

• Can be used strategically for retirement or estate planning.

✅ Guaranteed Income

• Payments are fixed and guaranteed for the full payout period.

• Provides consistent, long-term cash flow — ideal for retirement.

✅ Flexibility

• You choose how much to take upfront and how the rest is scheduled.

• Great for sellers who want security without fully exiting the market.

  
  

📈 The Result

By using MetLife’s Structured Installment Sale, Jane:

• Reduced her capital gains tax exposure

• Locked in a $5.6 million guaranteed return over 20 years

• Created a stable retirement income stream

• Protected her financial future — without the volatility of traditional investments

  
  

🏡 Thinking of Selling Property or a Business?

A Structured Installment Sale could be a smart, tax-efficient option — especially for high-value transactions. Whether you’re selling real estate, a business, or farmland, this strategy can help you keep more of what you earn while building long-term financial peace of mind.

Want to see a custom illustration? We’re happy to walk you through the numbers. Call Hathaway Settlements at 248-715-5250.