How providing the perfect capital gains tax solution for your clients will increase your sales.
The Secret to Closing More Deals – Eliminate Your Clients’ Capital Gains Tax Worries. Discover the perfect solution to defer capital gains taxes—help your clients keep more and boost your sales with the Deferred Sales Trust.
The Deferred Sales Trust is a powerful tool that transforms the game for Murphy Business Brokers. Boost your listings by partnering with Greg Reese and the Estate Planning Team using this proven strategy.
Murphy Business Brokers Presentation
The Deferred Sales Trust Explained
Understanding the Deferred Sales Trust is the first step to unlocking its full potential for your clients. Watch our whiteboard video below for a simplified explanation of how the DST works and why it’s the perfect solution for business brokers like you.
How the Deferred Sales Trust Can Provide the Solution You’ve Been Looking For
Bucket 1: Capital Gains Tax
- Deferred Sales Trust
- Description: Tax strategy by which the seller of any highly appreciated asset may sell that asset, defer the taxes owed for the year of sale, and has flexible investment options.
- Limitation: Due to the unique advantage that we can serve any seller of any asset, we believe our strength is in our structure’s flexibility, with very few restrictions.
- Opportunity Zone
- Description: Investment vehicle that enables seller to defer taxes on the gains by reinvesting those gains into a Qualified Opportunity Fund; Typically Economically Distressed areas.
- Limitation: Some limits to capital gains deferral NO control over investments. Risk of not being able to sell the developed property at a profit.
- Charitable Planning Trust
- Description: Irrevocable trust intended to reduce taxable income by first dispersing income to trust beneficiaries for a specified period of time and then the remainder to designated charity.
- Limitation: Once assets are placed in the trust, they generally cannot be taken back/changed. Fixed income does not protect against inflation.
- Structured Installment Sale
- Description: A Structured Installment Sale defers taxes by spreading payments, but offers fixed terms, low interest, and limited flexibility.
- Limitation: Fixed payment term. Low interest accrual. No flexibility in income payments and no lump sums for unanticipated events.
- Direct Seller Carry Back
- Description: A Direct Seller Carry Back finances a business sale, with risks like buyer default, limited cash flow, and tax deferral.
- Limitation: Default risk for seller. Seller’s income relies on buyer’s payments. Limited tax deferral. No upfront payment limits seller reinvestment.
Bucket 2: Seller’s Benefits using the Deferred Sales Trust Strategy
- The DST defers capital gains taxes, spreads tax burden, and allows tax-deferred investment, potentially retaining 30-40% more proceeds.
- 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.
Bucket 3: Benefits for the Broker using the Deferred Sales Trust Strategy
- 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.
- A DST enhances deal appeal by enabling tax deferral, allowing flexible structures like installment payments, and attracting more potential buyers.
- A DST maximizes net proceeds by deferring taxes, enabling reinvestment to offset lower sale prices, facilitating negotiations, and speeding up deal closures.
- Comprehensive support with education, marketing tools, and transaction assistance to ensure a smooth process. Our starter guide provides instructions on presenting Reef Point as a strategic partner to clients, along with details on how we support them throughout the process. Referral fees are also available.
- A DST lets sellers defer taxes, reinvest proceeds in future higher-performing assets, and capitalize on market rebounds despite current conditions.
Case Study
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Further Reading
Bring DST Benefits to Your Clients
Alternatives to Paying Capital Gains Taxes on Sale of Real Estate or a Business
![[Video] How to Incorporate Deferred Sales Trusts Into Your Business to Increase Real Estate Listings and Business Sales | Reef Point LLC](https://reefpointusa.com/wp-content/uploads/2021/01/Video-How-to-Incorporate-Deferred-Sales-Trusts-Into-Your-Business-to-Increase-Real-Estate-Listings-and-Business-Sales-Reef-Point-LLC-optimized.jpg)
[Video] How to Incorporate Deferred Sales Trusts Into Your Business to Increase Real Estate Listings and Business Sales
*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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Start Closing More Deals Today
Don’t let taxes hold back your clients or your success. Schedule a consultation with Reef Point LLC today to discover how the Deferred Sales Trust can become a powerful tool in your sales strategy. Fill out the form to request an appointment to learn more about becoming a Reef Point affiliate.