When you hear “Deferred Sales Trust,” what comes to your mind? In all likelihood, it’s capital gains deferral. Yes, the DST is an innovative tax strategy for deferring the capital gains exposure you face when selling a highly appreciated asset. But are you aware of the top three reasons why savvy investors choose the DST? If not, they are:
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Biden Administration Tax Proposals Make the DST an Even More Valuable Strategy
Savvy investors have been using the Deferred Sales Trust (DST) for over 25 years as a way to defer recognition of their long-term capital gains when they sell a real estate investment, business or other highly appreciated asset. President Biden’s proposed tax plan, however, make the DST even more valuable.
Using the DST to Reduce Your Investment Risk
Advice on reducing investment risk abounds. Unfortunately, however, little of it applies to you if you have a highly appreciated asset, such as a business or a piece of commercial real estate, that you wish to sell, but are hesitant to do so because of the capital gains tax you will face paying. This is where the Deferred Sales Trust may be just the solution you’re looking for.
How Financial and Investment Advisors Can Use and Benefit From the DST Process
As a financial and investment advisor, you wear many hats as you serve your clients. Some of your important roles include the following:
The 4 Fundamental Steps to Creating a DST
If you’re new to the concept of a Deferred Sales Trust, you likely will have numerous questions about what a DST is, how it functions, and how you go about creating one.