Those of you who own highly appreciated assets such as homes, businesses, commercial and residential real estate, even high value collectibles, are often reluctant to sell that asset because of the capital gains tax and depreciation recapture costs associated with the sale. There are perfectly legal ways to defer capital gains tax and reduce your overall tax burden.
Deferring taxes legally is not new. Some commonly used tax deferral methods include 1031 exchanges, charitable trusts, traditional seller carry-back installment sale contracts, and the deferred sales trust.
Comparison Model of the Deferred Sales Trust (DST) versus a Charitable Remainder Trust (CRT)