Section 453 of the Internal Revenue Code authorizes installment sales when you sell highly appreciated assets, allowing you to defer capital gains taxes. It is not, however, available for all types of sales and has some serious down sides. Learn how a Reef Point Deferred Sales Trust gives you all the advantages of a conventional installment sale while solving its inherent problems.
Tax Strategy
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 Does a DST Affect Your Tax Liability?
As a high net worth individual, you likely are all too familiar with capital gains taxes. These taxes that you pay when you sell a highly appreciated asset such as a business, commercial property, investment, collectible or even your personal residence, can wipe out much of the profit you make. But what if there were a safe and legal way for you to defer your tax liability?
DST: An Advantageous Tax Deferral Strategy For Your Clients
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.
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.