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Deferred Sales Trust

Defer Capital Gains Tax

The deferred sales trust is a legal, time-tested option to help business and real estate owners sell their assets and save on capital gains taxes. Thousands of companies, practices, and properties are bought and sold each day. The majority of those sales follow the same roadmap: the seller sells their asset to the buyer and then pays capital gains tax to the IRS. Capital gains tax rates are extremely high, however – and owners end up paying 20-35% of their profits to the IRS upfront!

If you sold your practice for $4 million, you could end up paying $800,000 to $1.3 million in capital gains taxes. Over one-fifth of your hard-earned income is lost immediately after completing your sale. Freedom Bridge Capital Deferred Sales Trust is an alternative to paying the enormous sums associated with capital gains tax.

Our estate planning team knows firsthand that selling your business or property can feel overwhelming. Maybe you don’t know the options available to you. Or perhaps you’re worried you are going to make less money on your business sale than you initially hoped because of the market. Without a financial professional by your side, you may not know where to start.

At Freedom Bridge Capital Deferred Sales Trust, our specialists are here to walk you through every step of the process. We start with a free DST analysis to examine all aspects of your financial life. We connect you with leading financial advisors to help determine if the deferred sales trust is the best option to accomplish your goals. We handle the paperwork, we handle the sale, and we can help you maximize the profits you make from your sale through diverse investments.

“Over the next twenty years, it is estimated that 20 trillion dollars will transition to the next generation in the United States. Many of these individuals want to minimize their potential tax liability by deferring capital gains and probate avoidance tax situations. According to Pew Research Center, roughly 10,000 baby boomers will turn 65 today, and about 10,000 more will cross that threshold every day for the next 15 years.”

HOW DOES THE DEFERRED SALES TRUST WORK?

The deferred sales trust is a legal contract between the seller and the Freedom Bridge Capital trust. The trust acts as a third party to help facilitate the sale of your business or property. You, as the seller, transfer your asset to the deferred sales trust. The trust then sells your asset to the buyer for you. The trust gives you a promissory note, which promises to pay you the proceeds of your sale in structured installments. You, as the seller, can decide how you want your money paid out. For example, you can completely avoid paying capital gains tax by investing your entire profit and receiving the interest of your investment.

How The Deferred Sales Trust Works

WITH THE DEFERRED SALES TRUST, YOU HAVE CONTROL

One of the most empowering benefits of the deferred sales trust is the amount of control you have over your investments. The Freedom Bridge Capital team is here to help and offer guidance, but you tell us how you want your money invested. You can choose your monthly payment amounts and investment options. These can be adjusted at any time.

THE DEFERRED SALES TRUST OFFERS FLEXIBILITY, LIQUIDITY, AND DIVERSIFICATION:

FLEXIBILITY

The deferred sales trust is flexible. Once you sell your asset to the trust, you have a choice: if you don’t need the income right away, you can invest the entire sum of your profits and collect interest without paying capital gains tax. If you do need a portion of the money, you can pay some of the capital gains tax upfront on that portion only and then invest the rest, deferring the taxes on the rest.

At any time, you can choose to alter your payment structure. You have the freedom to defer your capital gains tax indefinitely. Or you can even withdraw the entire amount and pay the capital gains tax upfront if needed. Our specialists will work with you to determine your financial goals. We follow your lead on how you want your investments allocated and your payments structured.


LIQUIDITY

The deferred sales trust converts your business or property asset into a steady income stream. Once you sell your asset to the trust, you can invest the profits and let your money make interest for you. You can then receive the interest in monthly installments. This creates steady income for you, without the hassles you used to deal with regarding your company or property.


DIVERSIFICATION

The deferred sales trust allows you to invest your money how you want to. You can invest in stocks, bonds, annuities, mutual funds, CDs, real estate, collectibles, and more. You have the freedom to diversify your assets. Our deferred sales trust specialists and financial professionals are here to offer guidance and help you set up a diversified portfolio that can earn high returns for the least risk.

WHICH ASSETS CAN I SELL TO THE DEFERRED SALES TRUST?

If you have a business, company, practice, or property that you would like to sell, then a deferred sales trust is worth considering. Below are just some of the assets that are eligible to be sold to the Freedom Bridge Capital Deferred Sales Trust:

  • SMALL BUSINESSES
  • MEDICAL PRACTICES
  • DENTAL PRACTICES
  • OPTOMETRY PRACTICES
  • OPHTHALMOLOGY PRACTICES
  • VETERINARY PRACTICES
  • ESTATES
  • COMMERCIAL PROPERTIES
  • LAND

THE LEGALITY OF THE DEFERRED SALES TRUST

The biggest reservation potential investors have about the deferred sales trust is the fear of the IRS. Many ask “is this legal?”, “Am I allowed to do this?”, “Will the IRS audit me?”

The deferred sales trust is a legal and proven way to invest. In fact, the DST is governed by Section 453 of the Internal Revenue Code, which has been a well-settled law for over ninety years! So, why are people skeptical? The biggest reason people feel weary at first is because the deferred sales trust is not well-known.

Even leading financial advisors and CPAs are unfamiliar with this method of capital gains deferral. As a result, there is some fear involved when people hear about the deferred sales trust because it’s outside one’s comfort zone.

Rest assured, the deferred sales trust has a track record of over twenty years of success. There have been thousands of closures and no legal issues in regards to the IRS. In fact, there have only been a handful of IRS audits and they have all been released without any change.

THE DEFERRED SALES TRUST USES TWO WELL-KNOWN ASPECTS OF THE IRS TAX CODE:

IRC 453

The sale of your asset to the deferred sales trust is classified as an “installment sale.” This is found under Section 453 of the Internal Revenue Code. IRC 453 has been around for over ninety years and is considered to be a well-settled law.

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FORM 6252

This IRS form is used to report any income you receive from the sale of real or personal property coming from an installment sale. You would use IRS Form 6252 to report your income from the sale of your asset to the deferred sales trust.

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WHO CAN INVEST IN THE DEFERRED SALES TRUST?

If you own a business, practice, or property and are looking to sell your asset, then you may be eligible to invest in the deferred sales trust. The Freedom Bridge Capital DST is ideal for owners who are looking to sell off their assets and transition to the next phase of their financial life.

DST For Retirement
dst for retirement

Many of our investors sell their company or real estate to the deferred sales trust, invest their profits, and then retire. This allows you to make money off the interest accruing on your investments and adds another stream of income into your life while you transition to retirement.

DST To Simplify Your Life
dst to simplify your life

If you are tired of owning your business, running your medical practice, or maintaining your rental property, then the deferred sales trust is an attractive investment option. Owners can sell their assets to the trust and give up the headaches of owning that asset. The profits from the sale can be invested – letting your money make money for you in the form of interest.

DST For Wealth Succession
dst for wealth succession

Perhaps you own a company or property and would like to transform that asset into wealth for your children and grandchildren. The deferred sales trust can help preserve the principle you gain from selling your asset. Your principle and investments can be passed down to your beneficiaries, giving them a steady stream of income from your investments.

SCHEDULE YOUR FREE VIDEO CONSULTATION

A ONE-ON-ONE WITH OUR DST TRUSTEE

Schedule a free video consultation with our deferred sales trust specialists today! Our estate planning team offers complimentary DST analyses to determine your estimated tax savings using the deferred sale trust investment strategy. We’re here to answer any questions you may have about the deferred sales trust and help you get started on the sale of your company, practice, or property.

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HOW DO I LEARN MORE ABOUT YOUR DEFERRED SALES TRUST?

The Freedom Bridge Capital team would be happy to speak with you to see if a deferred sales trust is right for you. Please give us a call at 800-897-0212 or request your free DST analysis today by filling out the form below.