The current economic, political and social climate has a lot of us feeling like humanity is about to fall off the edge of the world. Okay, that’s overstating it a little. But still, the CDC predicts new COVID-19 cases could hit at least a dozen states hard in the next four weeks. Governments are scaling down or halting reopening phases. The New York Times reports that long-term unemployment projections remain grim.
Deferred Sales Trust
Use a Deferred Sales Trust to Work Around 1031 Exchange Limitations
An IRS 1031 exchange is a fantastic tool for an investor to transfer a real estate asset into another without recognizing a taxable capital gain. However, there are limitations of its use and strict rules governing its use: like-kind limitations, time windows and asset type restrictions. If you wish to diversify your real estate asset into other investments or if your asset is not real property to begin with, then you need a 1031 exchange alternative like a Deferred Sales Trust.
Why the IRS Allows Deferred Sales Trusts and How You Can Benefit
Tax strategists are buzzing more and more about Deferred Sales Trusts as flexible alternatives to a 1031 exchange and valuable estate planning tools. A DST could defer capital gains tax obligations indefinitely, while producing cash flow, on the sale of any appreciated asset, not just real property.
Sharable DST Explainer Video and Case Study Flyers
Explaining a Deferred Sales Trust, DST, to someone for the first time can be a challenge. Having materials that are easy to share and helps a financial professional present this to a qualified DST candidate is one of Reef Point’s most common requests.