Capital gains taxes stand to take a big chunk out of your profits when you sell an asset. However, like most taxes, there are many things that go into the exact calculations of the capital gains tax you will pay. Remember that capital gains tax applies to a variety of different assets, including stocks, property and businesses. A unique factor of capital gains tax is that the amount of tax depends heavily on how long you had the asset. Depending on the state you live in, the state government may also levy capital gains taxes in addition to the federal government.
Avoiding capital gains tax may be the primary selling point of a Deferred Sales Trust, yet it is not the only benefit. Furthermore, some may even argue that deferring taxes is not even its best feature, considering the flexibility you have when structuring the trust.
Capital gains taxes often reduce profits by 40% or more. Finding ways to defer taxes and invest the excess is one of the ways that the 1% continues to build astronomical wealth. Reef Point LLC shares four practical reasons why you should establish a Deferred Sales Trust to avoid capital gains.
Actually, there is only one reason why anyone should defer capital gains taxes: more money.
Capital gains taxes often reduce profits by 40% or more. Finding ways to defer taxes and invest the excess is one of the ways that the 1% continues to build astronomical wealth.
Last month Reef Point featured an article on Deferred Sales Trust and Real Estate Partnerships and held a webinar. This video recording focuses on that article by using a recent case that Reef Point had become involved in. While telling the back story of a real-life scenario we highlight some of the details on how a Deferred Sales Trust can be the right solution.