DST 2.0 – Deferred Sales Trust

Deferred Sales Trust Brochure

DST – A Way Out

It’s not a DST (Delaware Statutory Trust). We like to call it DST 2.0. A Deferred Sales Trust allows someone to sell a property or business and defer the proceeds using the IRS Installment Sale method to defer the capital gains over time, meanwhile investing the proceeds into a diversified investment portfolio and collect specified distributions over time. This strategy can also replace failing 1031s. 

For more information, contact us today! 

Gold Coast Financial Group 

Scott Brooks, Chief Investment Officer 

Phone: 949.545.6500 

Those of us who own businesses, corporations, and commercial or residential investment real estate assets are often reluctant to sell because of capital gains taxes associated with the sale. But what other choice do we have other than a property exchange directed by a Qualified Intermediary? Is there another way to deal with the capital gains tax deficits that so many investors experience when they sell their real estate assets? The answer may lie in the Deferred Sales Trust™. 

This capital gains tax deferral tool could save you thousands of dollars, and at the same time, you would then have the opportunity to potentially make a profit on the money you would have paid to Uncle Sam in the year of the sale. Obviously, this strategy is gaining popularity among those who have highly appreciated assets that are marked for sale. You too, can potentially take advantage of this program once you understand how it works. 

The process 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. The payment isn’t in cash, but with a payment contract called an “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. 

The options on when and how payments can be made are flexible. You may have other income and don’t need the payments right away. The tax code doesn’t require payment of the capital gains until you start receiving installment payments. The capital gains tax is paid to the IRS with an “installment plan” since only that portion of capital gains is due in proportion to the number of years established in the term of the installment agreement. 

The Deferred Sales Trust™ has the potential to generate more money over the long run than a direct and taxed sale. 

There may be a more suitable or appropriate tax structure depending on your circumstance. We would like to have one of the Estate Planning Team’s tax specialists discuss your specific circumstances and goals with you. 

For a FREE tax savings analysis on a commercial or investment property, or a stock or a business you own, please complete the Request for Analysis. A member of Gold Coast Financial Group and the Estate Planning Team will contact you with the results. 

Disadvantages of the DST (Deferred Sales Trust) 

  • Certain types of depreciation recapture is deferred. 
  • Excess depreciation taken over straight line cannot be deferred. 
  • Mortgage pay-off in excess of adjusted basis is not deferrable. 
  • More complicated tax structure than other strategies. 
  • Must adhere to the formalities imposed by Internal Revenue Service regulations 
  • Fees to structure are often higher than strategies such as the 1031 exchange. 

Your right to receive the money will be from a trust in which the proceeds from the sale are reinvested in ways which may involve more or less risk, including fluctuating returns and possible loss of principal, depending on where the proceeds are reinvested.

    Request for Analysis

    Upon completion of this questionnaire, we will analyze the information and a member of our team will contact you to discuss your circumstances.

    We are committed to protecting your privacy and will never share your information with anyone except those directly involved in preparing your personal illustration. Thank you for giving us the opportunity to help you defer capital gains. If you have any questions, please call--we're here to serve you.

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    Tell us about the property.


    Property / Business Information:

    * Type of Property:

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    * What is the fair market or resale value of the property after commissions, fees, etc.?

    * Total amount of loans andor mortgages that will be paid from the sale proceeds?

    * What is the property's basis (cost plus improvements) before depreciation?

    * What is the amount of depreciation that has been taken? (if applicable)

    * What was your income for the year of the sale, not including the property sale?

    For more information, contact us today! 

    Gold Coast Financial Group 

    Scott S. Brooks, Chief Investment Officer 

    2753 Camino Capistrano, B-1
    San Clemente CA 92672

    Phone: 949.545.6500 Fax: 949.545-6503 Email: sbrooks@newbridgesecurities.com 

    www.GoldCoastFinancialGroup.com or www.GCFGinc.com

    Privacy Policy: Gold Coast Financial Group and Estate Planning Team are committed to protecting your privacy. We will never share your information with anyone except those directly involved in preparing your personal tax-savings illustration.

    Securities offered through Newbridge Securities Corporation, Member FINRA & SIPC and Investment Advisory services offered through Newbridge Financial Services Group Inc., an SEC Registered Investment Adviser. Office of Supervisory Jurisdiction: 5200 Town Center Circle, Tower One, Suite 306, Boca Raton FL 33486 P: 954.334.3450 T: 877.447.9625 F: 954.489.2390 http://www.NewbridgeSecurities.com. All companies and strategic alliances listed on this website are their own entity and not affiliated with any other company listed. The companies include, but are not limited to: Gold Coast Financial Group, Newbridge Securities Corporation, Newbridge Financial Services Group, Estate Planning Team, Campbell Law, Cor Clearing, Mains Law Office, & GCFG Insurance.

    There are risks that should be considered and reviewed when evaluating any investment. The material in this website is neither an offer to sell nor a solicitation of an offer to buy the securities described herein. The applicable offering documents, prospectus, or private placement memorandum (PPM) will be provided to each potential investor who has completed our investor questionnaire and meets the suitability standards required by securities regulation, law, and firm policies. We will provide you with the offering documents prior to investing. While this is a general disclaimer, the specific offering documents should be thoroughly read to fully understand all the implications and risks of any offering of securities to which it relates.

    Investing involves risk and there is no assurance that investment objectives of a program or offering will be achieved. Some of the investment types listed herein may be considered highly speculative, illiquid, and have high fees and costs. It is important to carefully consider all information listed in the relative prospectus or PPM – investment objectives, risks, charges, expenses, disclaimers, source of distributions, and any other factors to assist in making an informed decision. Please refer to the prospectus or private placement memorandum for specific program risks and suitability standards in your state. Please contact us for more Information.