Given that most mergers and acquisitions involve a large company, you likely have many tax considerations when another company wishes to merge with yours or to acquire yours. One of your most pressing needs likely is a strategy whereby you can defer the capital gains you undoubtedly will face when your company merges with another company or agrees to be acquired by it. This is where a Deferred Sales Trust can save you hundreds of thousands of dollars in taxes while allowing you to diversify your overall investment portfolio.
Business Exit Plan
If you own appreciated investment real estate or a business that you want to sell, you may be hesitant to do so because of the capital gains tax exposure you face. The rate could be as high as 20% if your taxable income exceeds $501.600 and you’re a married taxpayer filing jointly.
Despite the fact that savvy investors have been making use of the Deferred Sales Trust (DST) for over 20 years, you may not have heard about this legal, tested and innovative way to defer capital gains tax liability when you sell a highly appreciated home, business or piece of commercial real estate. If not, we at Reef Point are happy – and proud – to present this Complete Guide to the DST.