Generally, the terms of note will be Seller driven and the resulting terms must be reasonable and commercially viable. The initial term we would offer would be anywhere from 1 year to 10 years… Seller picks their desired term. The payback structure is very flexible in that the seller could: defer receiving payments for up to a couple of years or so; take a partial … [Read more...] about How Do You Structure Repayment Terms for a Deferred Sales Trust Installment Note
1031 Exchanges and Deferred Sales Trust™ are both based on the structuring of sales transactions to avoid actual or constructive receipt of the immediate sales proceeds by the seller. Used as a backup strategy, the Deferred Sales Trust™ preserves tax deferral when the seller cannot successfully complete a 1031 Exchange or does not wish to reinvest back into real estate. When this happens, the … [Read more...] about Using the Deferred Sales Trust™ to Rescue a Failed 1031 Exchange
Why Should You Consider the Deferred Sales Trust? If you are considering the sale of a business, corporation, or investment real estate, you may face capital gains tax associated with that sale. For the investor who does not want to continue holding investment property or remain in the same business, a Deferred Sales Trust should be considered. According to Section 453 of the Internal Revenue … [Read more...] about Primer on the Deferred Sales Trust (DST)
By Greg Reese, Principal Reef Point, LLC Certified Trustee for the Deferred Sales Trust The DST starts with an owner of an appreciated asset who wishes to sell that asset and defer taxes on his or her gain. In order to defer the gains on the sale, the seller/taxpayer must engage with the Estate Planning Team (EPT) and its Tax Attorneys BEFORE the property is actually sold and the seller/taxpayer … [Read more...] about How Does The Deferred Sales Trust Work?
A Legal, Tax-Based Strategy for Deferring the Payment of Capital Gains Taxes By Greg Reese, Certified Trustee for the Deferred Sales Trust Today we bring you Part 2 of our series covering the Deferred Sales Trust (DST). The DST is a legal, tax-based strategy for deferring the payment of capital gains taxes. Greg Reese, AmeriEstate Legal Plan, Inc., President and CEO and Principal of Reef … [Read more...] about The Deferred Sales Trust (Part 2)
A Legal, Tax-Based Strategy for Deferring the Payment of Capital Gains Taxes By Greg Reese, Certified Trustee for the Deferred Sales Trust Today we begin our series of AmeriEstate articles covering the Deferred Sales Trust (DST) as a legal, tax-based strategy for deferring the payment of capital gains taxes. Greg Reese, AmeriEstate Legal Plan, Inc., President and CEO and Principal of Reef … [Read more...] about The Deferred Sales Trust (Part 1)
How Can the Deferred Sales Trust be Used to Fund Alternative Investments? Let’s take real estate, for example. Frequently a DST is established as a bail-out or a Plan ‘B’ for a seller who is pursuing a 1031 exchange. Industry statistics show that 20% to 30% of 1031 exchanges fail because a seller is unable to identify their upside property within 45 days and successfully close on the … [Read more...] about How Can the Deferred Sales Trust be Used to Fund Alternative Investments?
By Greg Reese, Principal, Reef Point, LLC - Trustee for the Deferred Sales Trust The Deferred Sales Trust is designed so that the proceeds of the sale of a business, real property or highly appreciated collectables can achieve tax deferred status. The original seller of the appreciated asset first sells the asset to the Trustee of the Trust, who then “re-sells” the property to the intended … [Read more...] about The Use of Alternative Investments within the Deferred Sales Trust
What are the advantages of a Deferred Sales Trust (DST)? The Deferred Sales Trust, or DST, provides a unique exit strategy for an appreciated business or piece of real property. A component of the DST is the use of an installment sale strategy to defer and manage the tax obligations that come with the sale of an appreciated asset. Some of the negative features of the traditional way an … [Read more...] about Is a Deferred Sales Trust Right for You?
There are perfectly legal ways to defer capital gains tax and reduce your overall tax burden. 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 … [Read more...] about What are the Differences Between a Deferred Sales Trust (DST) and a Charitable Remainder Trust (CRT)?