Why Your DST Qualifies for Capital Gains Tax Deferral | Reef Point LLC

Why Your DST Qualifies for Capital Gains Tax Deferral

Per Section 453 of the Internal Revenue Code, you can defer capital gains taxes on the sale of your substantially appreciated investment real estate or business by means of an installment sale. A Deferred Sales Trust is an innovative type of installment sales contract that not only defers your capital gains taxes, but also provides you with numerous other benefits as well.

2 Unique DST Applications You May Not Have Known About — Until Now | Reef Point LLC

2 Unique DST Applications You May Not Have Known About — Until Now

When you think about a Deferred Sales Trust, you likely think of it as a unique strategy for selling highly appreciated investment property while deferring capital gains taxes. But you may not realize that you can also use a DST as a business exit strategy and when selling your primary residence.

Feeling Pressured To Make Quick 1031 Exchange Decisions? A DST Could Be Right for You | Reef Point LLC

Feeling Pressured To Make Quick 1031 Exchange Decisions? A DST Could Be Right for You

If you’re thinking about doing a 1031 exchange of investment real estate or a business, or have already started the process, you know that the stringent time frames required by a 1031 exchange can be challenging at best and impossible to meet at worst. You have only 45 days from the sale of your property to identify “like kind” property to buy. You have only 180 days from the sale of your property to close on the purchase of the “like kind” property.

Bring DST Benefits to Your Clients | Reef Point LLC

Bring DST Benefits to Your Clients

If you’re a professional who represents high net worth clients, you know that capital gains taxes constitute one of their main challenges when they sell a highly appreciated piece of investment real estate or a business. Today’s long-term capital gains rates are 15% for taxpayers filing jointly who make between $80,001 and $496,600 per year. For those making $496,601 or more, the rate increases to 20%. In some circumstances, they may owe an additional 3.8% on the lesser of their net investment income or the amount by which their modified adjusted gross income exceeds the statutory threshold based on their filing status.

The Risks and Disadvantages of a 1031 Exchange – And How the DST Can Eliminate Them | Reef Point

The Risks and Disadvantages of a 1031 Exchange – And How the DST Can Eliminate Them

If you have invested in real estate in the past, you likely have also done a 1031 exchange. As you undoubtedly learned, however, 1031s have numerous risks and disadvantages. While they defer your capital gains tax liability when you sell a piece of appreciated real estate, the rules and regulations that apply to them can make them unappealing at best and downright dangerous at worst. Why? Because they often fail, leaving you with an enormous capital gains tax to pay.

Two Scenarios in Which the DST Made an Excellent Real Estate Exit Strategy | Reef Point LLC

Two Scenarios in Which the DST Made an Excellent Real Estate Exit Strategy

If you invest in real estate, you likely have heard about Deferred Sales Trusts (DSTs), the innovative, legal and proven method of selling investment real estate that allows you to defer payment of capital gains taxes while offering you almost total flexibility in your investment choices. But have you ever considered the DST as a real estate exit strategy?