Over the years, real estate has proven to be a lucrative investment for many households. And, in some parts of the country, current market values have surpassed levels seen prior to the 2008 financial crisis. If your principal residence has appreciated significantly in value, you may be subject to capital gains tax when it’s sold. If your gain will be too big to be sheltered by the federal home sale gain exclusion, you might consider a tax-deferred Section 1031 like-kind exchange. However, this strategy isn’t for everyone, and executing it requires some proactive planning.
Deferred Sales Trust
Using the Deferred Sales Trust™ to Rescue a Failed 1031 Exchange
Primer on the Deferred Sales Trust (DST)
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 be considered.
How Does The Deferred Sales Trust Work?
Understanding a Deferred Sales Trust (DST). The DST starts with an owner of an appreciated asset who wishes to sell that asset and defer taxes on his or her gain.
