If you’re a commercial real estate investor or broker then you’ve probably heard of 1031 Exchanges, but there is an alternative that may open huge opportunities for you and your clients. The Deferred Sales Trust.
A 1031 Exchange allows commercial real estate investors the ability to sell their current property and reinvest those funds into a “like-kind” exchange. The 1031 exchange does allow owners to defer capital gains taxes, but facilitating a 1031 exchange doesn’t come easy. The 1031 Exchange can be complicated with a number of rules, regulations, and time constraints.
The Deferred Sales Trust solves many of these issues. The DST provides options for investors. And some of them are pretty exciting! So if you own property that you’ve considering exchanging – pause and consider this alternative. Cashing out and paying capital gains taxes and 1245 depreciation recapture can be too costly and frankly unnecessary.
Capital Gains Tax Solutions offers a remarkable solution to the problem of 1031 exchanges with their Deferred Sales Trust. Deferred Sales Trust or DST is a tax code compliant program that reduces the capital gains tax impact on your highly appreciated assets. The ultimate alternative to having to deal with the stress and hassle of a 1031 exchange in today’s market. The trust not only allows for the potential to earn interest on what you have paid out in immediate capital gains tax, but also allows you generate substantially more wealth over the long run, much more than a direct and immediately taxed sale.
Capital Gains Tax Solutions and their Deferred Sales Trust will set you free from the time constraints and regulations associated with a 1031 exchange. DST gives investors and brokers the ability to leave the real estate world and go back to it at their own timing all while remaining tax deferred. In other words, you can now sell high and attempt to buy low when the market shifts vs selling high and 180 days later buying higher with a 1031 exchange. While in the next real estate deal with the DST, the funds remain tax deferred and then when you sell the deal and if it has a gain the funds from the DST go back into the trust and still remain tax deferred.
Now you may be thinking, “this is way too good to be true, it can’t be legal.” But that couldn’t be further from the truth, in fact the DST and Capital Gains Tax Solutions has been vetter and lauded by various law firms, accounting firms, and financial professionals throughout the United States; working alongside real estate experts like Cushman & Wakefield and Marcus & Millichap.
Unlike a 1031 Exchange a DST allows you to save a failed 1031 Exchange. In other words at day 46 or day 181 the funds from the intermediary can be sent to DST and therefore the capital is tax-deferred, providing extra peace of mind in case your upleg does not work out or the seller or lender will not deal. Once the funds are in the DST they can be diversified into multiple real estate deals, real estate markets, REITs, bonds, and multiple funds, what you could do with a DST is essentially limitless.
But How Does it All Work?
Capital Gains Tax Solutions’ President & CEO, Brett Swarts and his team will guide you through the entire process. Which starts when a property owner sells their property to a trust owned by a third-party company. The trust sells the property or stock. Next, the trust “pays” you with a payment or “installment contract.” The contract promises to make payments to you over an agreed period of time. There are ZERO taxes to the trust on the sale since the trust “purchased” the property from you for what it sold it for. The payment is made with an installment contract which makes payments to you over an agreed period of time.
How Do I Get Started?
Capital Gains Tax Solutions will conduct an analysis of your asset at no cost! To get started simply visit mydstplan.com/taxsolutions and use their Deferred Sales Trust Request Analysis Tool. A member of Estate Planning Team will call you with the results of Capital Gains Tax Solutions’ analysis.