You built a successful FedEx ISP operation from the ground up. When it's time to sell, don't hand 20-40% of your life's work to the IRS. The 537 Installment Sale Trust defers 100% of capital gains — legally, with full liquidity.
Route values have appreciated significantly — and the IRS wants their cut at closing
You acquired your FedEx routes for a fraction of what they're worth today. Maybe you built them from scratch, maybe you bought in early when route values were lower. Either way, you're sitting on substantial capital gains — and if you sell the traditional way, you'll lose 20-40% of your sale price to federal and state capital gains taxes, depreciation recapture on your vehicles, and the 3.8% Net Investment Income Tax.
For an ISP selling $2M+ in routes, that means writing a check to the IRS for $400,000-$800,000 at closing. The 537 Installment Sale Trust eliminates that problem entirely — deferring 100% of capital gains while converting your route income into passive quarterly payments from a professionally managed portfolio.
No replacement property required. No 1031 Exchange deadlines. No more managing drivers, vehicles, or delivery schedules. Just consistent income from your life's work, on your terms.
Four steps from route sale to tax-deferred passive income
We set up your 537 IST in 14-30 days, before your route sale closes. The trust is structured to receive your routes and associated assets (vehicles, equipment, contracts).
Your FedEx routes are transferred to the IST in exchange for a secured promissory note. No tax is triggered because no gain is recognized at this stage.
The IST sells your routes to the ultimate buyer at the agreed price. Full pre-tax proceeds are invested through the Model Q dual-asset strategy.
You receive 7% annual income paid quarterly from the Model Q portfolio. Taxes remain deferred until you take principal distributions.
How one ISP operator kept an additional $400,000+ by structuring the sale through a 537 IST
A FedEx Ground ISP with 12 routes across two terminals in the Southeast had built the operation over 15 years. Original acquisition cost: $180,000. Current appraised value: $2.4M including vehicles and equipment.
The operator was ready to exit — managing 28 drivers, maintaining a fleet of vehicles, and handling daily delivery logistics had taken its toll. But a traditional sale would trigger approximately $420,000 in combined federal and state capital gains taxes.
By establishing a 537 IST before closing, the full $2.4M was invested through the Model Q portfolio — including the $420,000+ that would have gone to the IRS.
The former ISP now receives approximately $168,000 per year in quarterly income (7% on the full pre-tax amount) without managing a single delivery route, driver, or vehicle. The promissory note qualifies for a step-up in basis at death, meaning the deferred taxes can be eliminated entirely for heirs.
Purpose-built for operators who want to exit without leaving money on the table
Negotiate the best price for your routes without worrying about the tax hit. The 537 IST lets you keep 100% of the sale price working for you, not the IRS.
Replace your route income with passive quarterly payments from the Model Q portfolio. No more managing drivers, vehicles, or delivery schedules.
Trust assets are segregated in separate bank accounts with DACA protection, Fidelity Bonds, and E&O insurance. Professional fiduciary administration.
The promissory note qualifies as a security under Reves v. Ernst & Young. At death, heirs inherit with a stepped-up basis — eliminating all deferred taxes.
No more 4 AM starts, driver call-outs, vehicle breakdowns, or FedEx compliance audits. Convert your active business into truly passive income.
Access your funds within 3-7 business days. No surrender charges, no penalties, no lock-up periods. Take partial distributions anytime.