How providing the perfect capital gains tax solution for your clients will increase your sales.
Introducing the Deferred Sales Trust™
The Deferred Sales Trust, or DST is a legal, proven, and IRS-tested tax strategy designed to help Sellers of highly appreciated assets to defer the ordinary income taxes and capital gains taxes over a period of years instead of paying them all in a lump sum. The Deferred Sales Trust gives the Seller/Taxpayer the ability to control their capital gains tax exposure, reinvestment terms, and installment payments made from the trust.
IBBA 2025 Conference Presentation
Discover how a DST can significantly enhance your ability to close deals and elevate your value to clients. To delve deeper into this topic, Reef Point has crafted a presentation tailored for the IBBA 2025 Conference. Access it below.
Presentation Deck Download
How the Deferred Sales Trust Can Provide the Solution You’ve Been Looking For
A Solution That Solves a Problem
- The DST is a tax strategy by which the seller of any highly appreciated asset may sell that asset, defer the capital gains taxes over a period of years, and not at time of closing and provides and has flexible investment options.
- This DST proprietary strategy was developed over 27 years ago and is available only through the Estate Planning Team.
- 4,000 successful transactions completed.
- $200 billion in closings.
What’s In It for the Seller?
- Increase your seller’s net proceeds by an estimated 25% to 35% as a result of deferring the taxes.
- A DST lets business owners defer taxes, maximize net proceeds, and reinvest to offset lower sale prices amid high interest rates.
- The DST enhances deal appeal by offering tax-deferral flexibility, attracting more buyers and helping sellers close deals easily.
- A DST allows sellers to defer taxes, reinvest proceeds, and capitalize on future market rebounds despite current unfavorable conditions.
- A DST defers taxes, enabling reinvestment in assets that may perform better in uncertain economic conditions, offsetting lower sale values and providing long-term financial flexibility.
Make Selling a Business Easier
- Increase Deal Flow: By offering DST as an option, attract more sellers who are concerned about capital gains taxes.
- Close More Deals: Help clients keep more of their hard-earned proceeds, making your deals more attractive and easier to close.
- Business brokers can negotiate from a position of strength by deferring taxes and focusing on maximizing the net proceeds over time, regardless of lower sale prices due to interest rates.
- The DST gives the Seller the ability to control their capital gains tax exposure, reinvestment terms and installment payments.
- The DST provides added flexibility and tax incentives, which can speed up negotiations. By deferring capital gains taxes, sellers are more willing to offer creative deal terms that align with buyer needs
The Deferred Sales Trust Compared to Other Financial Strategies
How Partnering Can Help Your Business
Case Study
Do you have a current prospective client that could use a DST?
Click to fill out the DST Analysis Questionnaire
Further Reading
Webinar Replay: Repositioning Investments Using the Deferred Sales Trust
Compare a DST with a Self Directed 401K
Case Study: Avoiding a $1.2M Tax Bill on Bitcoin Gains
*Minimum Viable Transaction
When considering selling an appreciated asset, if the expected tax liability without any particular planning would cost $80,000 to $100,000 or more in taxes, then the DST should always be considered. Said another way, if the amount of the gain or profit that will be taxed on is at least $250,000, then YES you should look into the DST.
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