Advice on reducing investment risk abounds. Unfortunately, however, little of it applies to you if you have a highly appreciated asset, such as a business or a piece of commercial real estate, that you wish to sell, but are hesitant to do so because of the capital gains tax you will face paying. This is where the Deferred Sales Trust may be just the solution you’re looking for.
Capital Gains Taxes
How Financial and Investment Advisors Can Use and Benefit From the DST Process
As a financial and investment advisor, you wear many hats as you serve your clients. Some of your important roles include the following:
The 4 Fundamental Steps to Creating a DST
If you’re new to the concept of a Deferred Sales Trust, you likely will have numerous questions about what a DST is, how it functions, and how you go about creating one.
Hypothetical DST Scenarios: Commercial Real Estate in Orange County vs. Apartment Complex in San Diego
As you’ve likely already discovered, divesting yourself of substantially appreciated commercial real estate investments can be tricky at best. A straight sale exposes you to a huge long-term capital gains tax payment. A 1031 exchange has numerous rules and narrow time frames that can make it unfeasible. What to do?
Hypothetical Scenario: State Capital Gains Tax vs No State Capital Gains Tax
As an investor, you’re all too familiar with the way in which capital gains taxes can eat up a substantial portion of your profit when you sell a highly appreciated asset. To review, today’s federal long-term capital gains rates are as follows: