When you own a high-value, highly appreciated asset, such as a business, a commercial real estate investment, your personal residence, or even an art or antique collection, you may well be hesitant to sell it, even though you’d prefer to do exactly that. Why the hesitancy? Capital gains taxes could eat up 20% or more of your profit. In addition, the sale could push you into the 37% income bracket. With draconian results like these, it’s no wonder you’re just sitting on the asset. What you need is a viable exit strategy that lets you “exit rich.”
Deferred Sales Trust
Case Study: Is a Deferred Sales Trust Worth the Associated Legal Fee?
Deferred Sales Trusts are valued by many investors and regular people selling investment properties because they represent an opportunity to defer taxes. Deferring taxes from selling a highly appreciated asset provides the investor or seller with an opportunity to invest the proceeds from the sale of the asset. However, some sellers comment that the legal fee associated with setting up a deferred sales trust is too high to make the benefits of such a trust worthwhile. But is this logic sound? To find out, let’s dive into a case study that illustrates how the cost of choosing not to implement a deferred sales trust is actually higher (both upfront and in the long run) than paying the legal fee required to set up such a trust.
Why Might You Want To Become a Reef Point Partner?
As a legal, tax, real estate or investment professional, you provide many critical services to your well-to-do clients. But can you provide them with the comprehensive services they need to coordinate their tax, estate, investment and retirement planning?
Josh Curtis, CEO of EQB Interviews Greg Reese on the Deferred Sales Trust.
Josh Curtis, CEO of EQB speaks with Greg Reese, CEO of Reef Point and DST Trustee on the Deferred Sales Trust. A lesser known but powerful modern strategy for deferring capital gains taxes, the Deferred Sales Trust (DST), employs an innovative tax strategy to defer capital gains tax and preserve wealth.
How the DST Can Reduce Your Ownership Risk
Owning investment real estate is a risky proposition. While it has long been one of the most reliable ways to make a substantial profit in a relatively short period of time, that very profit can cause problems when you sell.