2 Unique DST Applications You May Not Have Known About — Until Now | Reef Point LLC

2 Unique DST Applications You May Not Have Known About — Until Now

When you think about a Deferred Sales Trust, you likely think of it as a unique strategy for selling highly appreciated investment property while deferring capital gains taxes. But you may not realize that you can also use a DST as a business exit strategy and when selling your primary residence.

Bring DST Benefits to Your Clients | Reef Point LLC

Bring DST Benefits to Your Clients

If you’re a professional who represents high net worth clients, you know that capital gains taxes constitute one of their main challenges when they sell a highly appreciated piece of investment real estate or a business. Today’s long-term capital gains rates are 15% for taxpayers filing jointly who make between $80,001 and $496,600 per year. For those making $496,601 or more, the rate increases to 20%. In some circumstances, they may owe an additional 3.8% on the lesser of their net investment income or the amount by which their modified adjusted gross income exceeds the statutory threshold based on their filing status.

The Risks and Disadvantages of a 1031 Exchange – And How the DST Can Eliminate Them | Reef Point

The Risks and Disadvantages of a 1031 Exchange – And How the DST Can Eliminate Them

If you have invested in real estate in the past, you likely have also done a 1031 exchange. As you undoubtedly learned, however, 1031s have numerous risks and disadvantages. While they defer your capital gains tax liability when you sell a piece of appreciated real estate, the rules and regulations that apply to them can make them unappealing at best and downright dangerous at worst. Why? Because they often fail, leaving you with an enormous capital gains tax to pay.

Two Scenarios in Which the DST Made an Excellent Real Estate Exit Strategy | Reef Point LLC

Two Scenarios in Which the DST Made an Excellent Real Estate Exit Strategy

If you invest in real estate, you likely have heard about Deferred Sales Trusts (DSTs), the innovative, legal and proven method of selling investment real estate that allows you to defer payment of capital gains taxes while offering you almost total flexibility in your investment choices. But have you ever considered the DST as a real estate exit strategy?

Can a DST Ease the Financial Strain of a Divorce? | Reefpoint

Can a DST Ease the Financial Strain of a Divorce?

The Deferred Sales Trust is a tax strategy that uses the proceeds from the sale of virtually any asset to establish a trust held by a certified, third-party Deferred Sales Trustee. Read about two scenarios with varying degrees of post-divorce capital gain realization where the Deferred Sales Trust tax strategy would have been useful.

Establishing Charitable Trusts in Estate Plans - Part 2 — Strategic Solutions | ReefPoint LLC

Establishing Charitable Trusts in Estate Plans: Part 2 — Strategic Solutions

In Part 1, Charles and Maddie’s story illustrated how life and politics can make a father’s desire to provide for his daughter much harder than it should be. While not ultra-wealthy by any standard, Charles has enough retirement savings that he should be able to structure supplemental income for Maddie for many years should he succumb to heart disease complications or any other premature death.