Deferred Sales Trust May Be The Answer.
4 Options When You Sell Your Hotel
If you own a hotel, you have two options: hold or sell. If you sell your hotel, you have three options: pay capital gains tax, defer capital gains tax using a 1031 exchange to purchase a new hotel, or defer capital gains taxes using a Deferred Sales Trust (DST).
With a Deferred Sales Trust, you can avoid paying any capital gains taxes at the time of sale. Instead, you will receive the sale proceeds in installment payments over a predetermined period, typically 10 or 20 years or over your lifetime. The payment schedule is flexible, and you can also defer initial payments if you don’t need the income. Capital gains taxes will be due on installment payments as you receive them. Meanwhile, the Trust invests the entire sale proceeds (pre-tax) in stocks, bonds, real estate, annuities, or any other type of investment at your direction and approval. You can let your deferred taxes earn you income.
A Deferred Sales Trust is a two-part sale. Before closing on the sale to the identified buyer, you sell your hotel to a third-party trust in an installment contract which would pay you the sale proceeds in installment payments over a predetermined period. The trust would then sell the hotel to the buyer as a regular asset sale.
Safety Track Record:
Meet a Trustee for the Deferred Sales Trust
Jordan E. Kanter, JD
Managing Member, Victory Financial Services, LLC
Jordan E. Kanter, JD has presided over thousands of tax deferred transactions without a negative outcome. He is a respected authority on tax deferral strategies and is one of the few experts in the country on both 1031 Exchanges and the Deferred Sales Trust™. He has been a fiduciary to high net worth clients for over twenty-five years, with extensive experience as an attorney, qualified intermediary, trustee and, formerly, a securities and insurance advisor.
'Til Next Time,
President MBA Hotel Brokers Inc. and President Hotel Investor Apps Inc.
Marketing Director MBA Hotel Brokers Inc.