Description

What is a Deferred Sales Trust If you are considering the sale of a highly-appreciated asset – business, corporation, or investment in real estate – you may face capital gains taxes associated with this transaction. A Deferred Sales Trust (DST) is a legal contract between you and a third-party trust in which you sell an asset to the Trust in exchange for the Deferred Sales Trust’s contractual promise to pay you a fixed sum over a prearranged future period in the form of an installment sale note or promissory note. A DST gives you the ability to control your capital gains tax exposure, reinvestment terms, and installment payments made from the Trust. 3 Common Uses for a DST. 1) Business Exit Strategy 2) 1031 Exchange Alternative 3) 1031 Rescue