Learn How The Deferred Sales Trust Works
Understand the 90+-year-old tax law and 23+ year 2000+ closed deal track record of the deferred sales trust.
What is actual or constructive receipt?
An individual is considered to be in constructive receipt of income when they have the ability to control or utilize the funds, even if they do not have direct possession of them, or if it is guaranteed they will have the ability to draw upon the funds in the future.
How does a traditional installment sale(IRC 453) aka Seller Carry Back maintain non-constructive or actual receipt?
A “seller carry back,” a “contract sale” or a “note and trust deed” sale are all terms that describe forms of seller financing. If you as a seller decide to lend 100% of the purchase price of your asset to a buyer and you have received $0 actual or constructive receipt then your capital gains tax in a given year is $0. The key is how much cash did you actually or constructively receive? So how does a 1031 exchange help you maintain non-constructive or actual receipt of the proceeds? Since the funds are sent from escrow to the 1031 accommodator you as an individual have received $0 and therefore $0 is due in a given year. If any of the proceeds are sent to you and not 1031 exchanged into the next deal then this is considered ‘boot’ and on this amount, you will owe the capital gains tax in the given year.
The Deferred Sales Trust Strategy is the tool to help you solve all of the above & help you:
CRE Brokers
Luxury Real Estate Agents
Escrow Officers
Qualified Intermedrary
Insurance Professionals
Financial Advisors
Lenders
CPA & Tax Professionals
Schedule a workshop to get trained
Join the estate Planning team
Implement the DST Strategy
DST Clarity Overview Guide
Free Resource
How much will your capital gains tax cost you?
With this Deferred Sales Trust guide, we’ll help you beat the confusion that’s holding back you and your trusted advisors from embracing the deferred sales Trust. How? By showing you how the deferred sales trust works and to build your confidence in the strategy s0 you can create and preserve more wealth.
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