Deferred Sales Trust: A Capital Gains Tax Deferral Strategy
Owners of businesses, real estate, and other highly appreciated assets are often reluctant to sell due to the significant capital gains tax liability that can result. Fortunately, Estate Planning Team’s Deferred Sales TrustTM (“DST”) offers an attractive and flexible tax deferral alternative to a 1031 Exchange, which can dramatically decrease or eliminate the capital gains taxes that would otherwise be recognized in the year of the sale.
Rather than experiencing the debilitating drain of equity that results from a fully taxable sale, the DST permits the seller to generate a potentially higher rate of return by leveraging the pre-tax proceeds from the sale, which can be significantly greater.
Document Outline:
- DST Overview
- Primary Benefits
- Hypothetical Scenarios
- Steps to Creating Your Deferred Sales Trust
- Who is Estate Planning Team?
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