The good news is that your cryptocurrency investment went through the roof and proceeded on up into the stratosphere. The bad news is that you want to sell before the volatile crypto market crashes, like it frequently does, but you know you will face a huge capital gains tax if and when you do.
As the owner of one or more highly appreciated assets, you may have heard about the Deferred Sales Trust (DST), the innovative strategy that allows you to defer the substantial capital gains taxes you usually face when you sell one of these assets. Some of what you may have heard, however, could be inaccurate.
When you hear “Deferred Sales Trust,” what comes to your mind? In all likelihood, it’s capital gains deferral. Yes, the DST is an innovative tax strategy for deferring the capital gains exposure you face when selling a highly appreciated asset. But are you aware of the top three reasons why savvy investors choose the DST? If not, they are:
Savvy investors have been using the Deferred Sales Trust (DST) for over 25 years as a way to defer recognition of their long-term capital gains when they sell a real estate investment, business or other highly appreciated asset. President Biden’s proposed tax plan, however, make the DST even more valuable.
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.