Most Financial Advisors have clients who struggle with capital gains tax and depreciation recapture of around 30-50% of their gain when they sell their high-end primary home, business, or commercial real estate. We use a Deferred Sales Trust to help their clients gain tax deferral, liquidity, diversification with their funds so they can create and preserve more wealth. This empowers business professionals to add massive amounts of value and grow their AUM.
23 year track record of 2000+ Deferred sales Trust closed with 14 no change irs audits
“It’s a relief to be rid of the apartment building. It was a very lucrative investment, but it came with a lot of headaches that took up my time and energy.”
the deferred sales trust is ideal if your client is:
- Feeling pressured, rushed, trapped, forced to make quick 1031 exchange decisions and wants to buy real estate at their own timing.
- They would like to sell high and wait on the sidelines and/or buy or develop real estate at their own timing all tax-deferred.
- They want to trade toilets, trash, management and liability for time, travel, liquidity, diversification and retirement.
- They are selling their primary residence and the $250,000 or $500,000 exclusion is not enough to offset their capital gains tax and they don’t want to pay down the national debt.
- They are selling their business and want to defer your capital gains tax instead of paying it to Uncle Sam and have you manage the funds in a diversified portfolio of liquid investments.
- They are struggling with High Capital Gains Tax on the sale of their asset of around 30-50% of their gain and restrictive 1031 laws holding them back from selling.
With the Deferred Sales Trust
Without the Deferred Sales Trust
What does this cost my client?
ONE TIME FEEAttorney
1.5% of trust up to $1,000,000 & 1.25% of trust above $1,000,000
- Tax and Legal Structure
- Includes Audit Defense for life of the trust
- Includes working with CPA to properly report your personal tax return
- This fee is tax-deductible
At Close of Trust and ANNUAL RECURRINGCapital Gains Tax Solutions: Trustee
50 basis points (1/2 of 1%)
- Tax Return $750-$1,000 range
- Out of network investments (such as real estate or funding a real estate development project or business) – double the above 50 basis points annually for a total of (100 basis points) for funds removed from the trust into an LLC, however, subtract the Financial Advisor Fees for amount directed.
- Optional 10 year Carve Out One Time Upside FEE: you may purchase outside of the trust a one-time optional option carve for 1.5% for funds directed to an LLC to invest into out of network investment. This is 10-year option to direct funds to an LLC which can buy and sell real estate in and out of the Trust all tax-deferred or .75% for 5-year term.
ANNUAL RECURRING FEEFinancial Advisor
50-100 basis points
- Depending on account size and where the funds are invested.
- + DACA Account Fee $1,500 (if DST account is less than $1M) every 18 months.