Bifurcated Exchanges into a 1031 Exchange and a Deferred Sales Trust with the possible use of a Delaware Statutory Trust for the 1031 Exchange Upside Replacement Property The usual 1031 jargon is “up in value, up in loans”. In a bifurcated 1031 exchange you are doing 2 transactions- (1) a 1031 exchange and (2) a …
Read moreBifurcated Exchanges into a 1031 Exchange and a Deferred Sales Trust
It is not uncommon for friends or family members to pool their resources together to invest in Real Estate. Often times they employ a strategy where they systematically use a vehicle known as a 1031 exchange to reinvest in more valuable properties using tax deferral to allow their assets to grow more quickly. As with …
Many people who own or would like to own investment real estate may be familiar with the abbreviation “DST.” It is entirely possible that they could be exposed to two differently described DSTs and wonder if they are one and the same, or is one possibly a variation of the other. The difference between a …
Read moreThe Tale of Two DSTs – Delaware Statutory Trust vs Deferred Sales Trust
1031 Exchanges and Deferred Sales Trust™ are both based on the structuring of sales transactions to avoid actual or constructive receipt of the immediate sales proceeds by the seller. Used as a backup strategy, the Deferred Sales Trust™ preserves tax deferral when the seller cannot successfully complete a 1031 Exchange or does not wish to …
Read moreUsing the Deferred Sales Trust™ to Rescue a Failed 1031 Exchange
Why Should You Consider the Deferred Sales Trust? If you are considering the sale of a business, corporation, or investment real estate, you may face capital gains tax associated with that sale. For the investor who does not want to continue holding investment property or remain in the same business, a Deferred Sales Trust should …
By Greg Reese, Principal Reef Point, LLC Certified Trustee for the Deferred Sales Trust The DST starts with an owner of an appreciated asset who wishes to sell that asset and defer taxes on his or her gain. In order to defer the gains on the sale, the seller/taxpayer must engage with the Estate Planning …
A Legal, Tax-Based Strategy for Deferring the Payment of Capital Gains Taxes By Greg Reese, Certified Trustee for the Deferred Sales Trust Today we bring you Part 2 of our series covering the Deferred Sales Trust (DST). The DST is a legal, tax-based strategy for deferring the payment of capital gains taxes. Greg Reese, AmeriEstate Legal Plan, Inc., President and …
A Legal, Tax-Based Strategy for Deferring the Payment of Capital Gains Taxes By Greg Reese, Certified Trustee for the Deferred Sales Trust Today we begin our series of AmeriEstate articles covering the Deferred Sales Trust (DST) as a legal, tax-based strategy for deferring the payment of capital gains taxes. Greg Reese, AmeriEstate Legal Plan, Inc., President and CEO and Principal …
Let’s take real estate, for example. Frequently a DST is established as a bail-out or a Plan ‘B’ for a seller who is pursuing a 1031 exchange. Industry statistics show that 20% to 30% of 1031 exchanges fail because a seller is unable to identify their upside property within 45 days and successfully close on the identified …
Read moreHow Can the Deferred Sales Trust be Used to Fund Alternative Investments?
The Deferred Sales Trust is designed so that the proceeds of the sale of a business, real property or highly appreciated collectables can achieve tax deferred status. The original seller of the appreciated asset first sells the asset to the Trustee of the Trust, who then “re-sells” the property to the intended buyer. The transaction is effectively …
Read moreThe Use of Alternative Investments within the Deferred Sales Trust