As a CPA helping high-asset clients create and maintain their wealth, you hold an exceptionally prestigious, albeit challenging, position. You’re the expert to whom they look to help them maximize their profits, minimize their tax liability and shield them, to the greatest extent possible, from IRS audits. But how do you do this, especially in light of the major tax changes likely coming in the near future? The Deferred Sales Trust (DST) may be just the answer you and your clients are looking for.
Blog
Pros and Cons of the Deferred Sales Trust
If you own a highly appreciated asset that you wish to sell, one of your main concerns likely is the capital gains tax liability you will face. While several tax deferral strategies exist, the Deferred Sales Trust (DST) provides you with benefits that the others don’t. Still, it’s not for everyone.
Case Studies: How the DST Benefits You If You Live in a State With No Income Tax
In a previous post, we explained how the Deferred Sales Trust (DST) can benefit you if you live in a state, such as California, that imposes a state income tax. But what if you are fortunate enough to live in a state with no state income tax? How does the DST benefit you then? Read on to discover two ways in which the DST can shield you from substantial capital gains taxes when you sell a highly appreciated asset. For purposes of these case studies, assume you live in Florida, one of the states that imposes no state income tax, and therefore no state capital gains tax.
Who Makes Up the DST Estate Planning Team?
When you desire to sell one of your highly appreciated assets and also wish to defer payment of capital gains taxes through utilization of the Deferred Sales Trust (DST), the first step of the process consists of meeting with the Estate Planning Team. But who exactly are the members of this elite professional team?
Selling Highly Concentrated Stock? Use the DST.
If you’re a successful long-time investor, or someone who has made good use of your stock options, you may well find yourself in the position of holding one or more chunks of highly concentrated stock. On the one hand, this disproportionate wealth allocation puts you at substantial risk. On the other hand, selling this highly appreciated stock can cause a capital gains nightmare. What to do?