DST - is already known as Delaware statutory trust, took your guest until the very end to separate from Deferred Sales Trust. Never heard of this before. He glossed over the fees saying it wasn't worth it for small exchanges. How much does it cost to setup the Trust ? Who are the trustees etc. Thanks...
The Deferred Sales Trust is not a Delaware Statutory Trust. Fees of the Deferred Sales Trust are typically 1.5% to setup and close, payable at closing if the deal closes and about 1.5% to 2.0% yearly recurring.
I am curious to know who this would make sense for. He mentioned it is a simple ROI analysis and used an example of 25k in a tax liability and how his fees would be more then that. Is it really more than 25k in fees to start a deferred sales trust?
@@RedactedNews Thanks Jay and Morris Invest for the good question. Short answer: the 20% is invested in liquid investment-grade securities. They still earn a rate of return and can still pay you, based on the terms of the note. Here is a URL to a Capital Gains Tax Solutions Deferred Sales Trust video, "80% Why not a higher percentage to invest back into CRE or a business?" just released on this exact topic to give you more context to why only 80% and where the 20% is invested. th-cam.com/video/v2aZOAiTxgQ/w-d-xo.html
@@JayJay-bo8dk good question. Thanks for asking. The 20% remains invested in invest grade securities such as mutual funds. What are the steps to Investing in the Deferred Sales Trust Proceeds? • Risk Tolerance Questionnaire - filled out by the seller. • The Deferred Sales Trust Note Terms - negotiated & agreed to by Deferred Sale Trust Noteholder and Trustee (Capital Gains Tax Solutions). • Asset Allocation - presented by Financial Advisor and approved by Deferred Sales Trust Trustee & DST Noteholder. • Disclosures are signed. • Deferred Sales Trust Closed - Investments are made. If the 80% goes out to a real estate investment the 20% needs to remain invested in securities to maintain liquidity and reserve to pay this amount back to you. If you sell the 80% real estate position and move the funds back into the Deferred Sales Trust, then yes all 100% can be liquidated and you would pay the capital gains tax and income tax on the amount received in that given year. You could also liquidate a smaller amount along the way as long as you have 20% liquidity. Learn more here with top 20+ FAQ's : capitalgainstaxsolutions.com/faq/
sam443 I purchased the book after reading Morris video. It's awesome. So much great relevant information. I never knew I would love reading a book about the tax code, but as a real estate investor, I needed to. Buy it. You won't regret!
I have a house that just appraised at $279k not fixed up and i owe $52k to a loan .i have the deed its paid off ..can i use a 1031 exchange with the proffits off the sale of the house or will the $52k loan i have to pay get in the way?
Quick question: can DST help to defer state tax (CA)?
DST - is already known as Delaware statutory trust, took your guest until the very end to separate from Deferred Sales Trust. Never heard of this before. He glossed over the fees saying it wasn't worth it for small exchanges. How much does it cost to setup the Trust ? Who are the trustees etc. Thanks...
The Deferred Sales Trust is not a Delaware Statutory Trust. Fees of the Deferred Sales Trust are typically 1.5% to setup and close, payable at closing if the deal closes and about 1.5% to 2.0% yearly recurring.
I am curious to know who this would make sense for. He mentioned it is a simple ROI analysis and used an example of 25k in a tax liability and how his fees would be more then that. Is it really more than 25k in fees to start a deferred sales trust?
how do find a trustable "trustee?"
Great content! Thank you guys👍
Thanks for watching, Mauricio!
What is the status on the remaining 20% in the trust after the reinvestment
Honestly, not sure! We've asked Brett & his team to come answer some of these more detailed questions. Hopefully we can get you an answer soon.
@@RedactedNews Thanks Jay and Morris Invest for the good question. Short answer: the 20% is invested in liquid investment-grade securities. They still earn a rate of return and can still pay you, based on the terms of the note. Here is a URL to a Capital Gains Tax Solutions Deferred Sales Trust video, "80% Why not a higher percentage to invest back into CRE or a business?" just released on this exact topic to give you more context to why only 80% and where the 20% is invested. th-cam.com/video/v2aZOAiTxgQ/w-d-xo.html
@@CapitalGainsTaxSolutions Great answer, thank you!
@@RedactedNews Thanks. Happy to help!
@@JayJay-bo8dk good question. Thanks for asking. The 20% remains invested in invest grade securities such as mutual funds.
What are the steps to Investing in the Deferred Sales Trust Proceeds?
• Risk Tolerance Questionnaire - filled out by the seller.
• The Deferred Sales Trust Note Terms - negotiated & agreed to by Deferred Sale Trust Noteholder and Trustee (Capital Gains Tax Solutions).
• Asset Allocation - presented by Financial Advisor and approved by Deferred Sales Trust Trustee & DST Noteholder.
• Disclosures are signed.
• Deferred Sales Trust Closed - Investments are made.
If the 80% goes out to a real estate investment the 20% needs to remain invested in securities to maintain liquidity and reserve to pay this amount back to you. If you sell the 80% real estate position and move the funds back into the Deferred Sales Trust, then yes all 100% can be liquidated and you would pay the capital gains tax and income tax on the amount received in that given year. You could also liquidate a smaller amount along the way as long as you have 20% liquidity.
Learn more here with top 20+ FAQ's : capitalgainstaxsolutions.com/faq/
what s the name of the tax book you recommend from your cpa to understand all taxes impact on income?
Tax-Free Wealth! amzn.to/2FowpuV
sam443 I purchased the book after reading Morris video. It's awesome. So much great relevant information. I never knew I would love reading a book about the tax code, but as a real estate investor, I needed to. Buy it. You won't regret!
Make video on property taxes and expenses of real estate
Wow awesome data !!!
I have a house that just appraised at $279k not fixed up and i owe $52k to a loan .i have the deed its paid off ..can i use a 1031 exchange with the proffits off the sale of the house or will the $52k loan i have to pay get in the way?
You should still be able to do it. Contact our friends at Asset Exchange Co. ax1031.com