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THE DEFERRED SALES TRUST

CAPITAL GAINS TAX DEFERRAL STRATEGY

The Deferred Sales Trust (DST) is a legal, time-tested investment strategy to defer capital gains tax on the sale of your business or property. Capital gains refer to the profit you made off your asset since the time you bought it. Following the sale of your asset, you are responsible for paying capital gains tax. Capital gains rates can soar, and after all taxes are factored in, you can lose up to 20-35% of your hard-earned profit. Many business and real estate owners are unaware of the capital gains tax implications, or they simply accept the loss of 20-25% of their proceeds as the only option. Unfortunately, most sellers miss out on a proven and powerful investment method: the Deferred Sales Trust.

Imagine being able to defer your capital gains tax. What if you could use your profit to build a passive income stream and spread out your capital gains taxes over time? The Deferred Sales Trust does just that. For over twenty years, the Deferred Sales Trust has been helping company owners, doctors, surgeons, and property owners defer taxes on the sale of their assets. The Deferred Sales Trust provides tax benefits, flexible investment options to secure your promissory note, liquidity, and wealth succession opportunities for you and your family.

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FAQS

capital gains tax deferral

The Deferred Sales Trust is governed by IRC 453 of the Internal Revenue Code. This classifies the DST as an “installment sale,” which legally allows you to defer capital gains taxes on your sale. By deferring capital gains, the trust receives more of the overall proceeds.

liquidity

Liquidity helps reduce risk by preventing overexposure to a single type of asset.

passive income stream

The Deferred Sales Trust lets you build a steady stream of passive income through monthly installments. You can turn the interest you make on the trust's investments into monthly income and even convert your sales proceeds into monthly installments to spread out capital gains tax over a longer period of time.

wealth planning

Investing in the DST can also benefit your heirs. You can set up a wealth succession plan to pass down your note and its proceeds to your family members. This can provide a stream of income for your beneficiaries in the long-term.

DEFERRED SALES TRUST PROCESS

A STEP-BY-STEP GUIDE OF HOW OUR DST WORKS

The Deferred Sales Trust Team understands firsthand how overwhelming it can be to sell your business or property. The paperwork, the tax implications, and the high capital gains rates can make owners reluctant to sell their assets. That’s why you need a team of professionals by your side to help you seamlessly transition to the next chapter. Our estate planning team works with you to complete your transaction, set up a monthly payment structure, and craft a wealth succession plan.

Freedom Bridge Capital can help you defer your capital gains taxes. The Deferred Sales Trust gives you flexibility, liquidity, and diversification in the investments securing your promissory note. We can handle the paperwork while you transfer your asset to the trust. Our team will sit down with you to create the ideal payment structure. Additionally, our team of DST professionals can help lay out the best possible financial plan for your future.

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educating you on the dst process

Our team and a DST attorney will have multiple visits with you, usually Zoom conferences, to introduce and discuss the structure of the Deferred Sales Trust and how it meets your individual situation.

selling to the deferred sales trust

The Deferred Sales Trust acts as a third-party between buyer and seller. You will transfer your asset to the trust in exchange for a promissory note that can pay your proceeds in monthly installments.

completing the transaction

After you transfer your asset to the Deferred Sales Trust, we will sell your asset to the buyer. Our sale trust professionals will organize the paperwork and finalize the sale.

setting up the monthly payment structure

Our DST team will work with you to create a payment structure. You have the choice of taking your sales proceeds as monthly income (and paying capital gains tax on that portion only). You can also take the interest you receive from your investments as income (you will pay capital gains tax on interest), but you will pay ordinary income tax).

creating a wealth succession plan

As part of your DST agreement, you receive access to estate planning professionals. We help you set up your living will, name your note beneficiaries, and finalize a wealth succession strategy to provide a long-term stream of passive income for your heirs.

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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SELLING YOUR BUSINESS, PRACTICE, PROPERTY, OR REAL ESTATE

MAXIMIZING PROFITS WITH THE DST

Some of the most common questions asked by business and property owners are: “How do I maximize the profit of my asset?” and “What are the tax implications?” These questions go hand in hand, as the sale of a business, medical practice, or real estate can incur high capital gains tax rates that erase a large portion of your profit. In fact, these taxes can rise up to 20-35% of your overall sales proceeds. Most owners simply pay their capital gains taxes because they are unaware of any other options. Each day, thousands of business and property owners miss out on the capital gains deferral benefits of the Deferred Sales Trust.

The Deferred Sales Trust can help owners sell their assets and transition to retirement or other professional opportunities. Freedom Bridge Capital specializes in the sale of businesses, real estate, medical, dental, optometry, & ophthalmology practices, and any structure that incurs capital gains taxes.

selling your business

Owning a company has many benefits, but it’s not without its headaches. After years of handling payroll, employees, and clients, it may be time to transition to retirement or a new endeavor. Many business owners want to move on but they are unaware of the best way forward. Selling your company to the DST can defer paying 20-35% of your profit in capital gains taxes. These proceeds can be turned into a consistent stream of passive income.

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selling your real estate

Property owners are often unaware of the Deferred Sales Trust as a real estate investment opportunity. Unlike other property tax deferral methods, like the 1031 exchange which limits your investment opportunities to real estate, the Deferred Sales Trust provides more flexibility. Real estate owners can sell their property to their Deferred Sales Trust and, defer their capital gains tax.

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selling your practice

The Deferred Sales Trust is a useful tool for doctors, surgeons, and specialists who are looking to sell their medical practice. After years of building your practice into a profitable and efficient center, the thought of losing 20-35% of your proceeds to capital gains tax is daunting. As a result, many medical professionals hold off on selling because they don’t know about the tax deferral benefits of the DST. Our Defered Sales Trust specialists can help you sell your medical practice and defer capital gains tax.

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selling your estate

Our team handles all aspects of selling your estate and crafting a long-term wealth succession plan. The Deferred Sales Trust can help you sell your assets and pass down your proceeds to your family. When structured correctly, the DST can provide long-term passive income for your heirs through your promissory note. Our estate planning professionals will also assist with creating your living will and naming your beneficiaries.

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FREEDOM BRIDGE CAPITAL

DEFERRED SALES TRUST PROFESSIONALS

Freedom Bridge Capital is a leader in the Deferred Sales Trust and capital gains tax deferral. The team helping with your Defer Sales Trust consists of renowned estate planners, leading financial advisors, and top legal consultants. Together, we provide a comprehensive and full-scale approach to selling your business, practice, or real estate. When you choose Freedom Bridge Capital, you get full access to our team of professionals. From completing the sale to crafting an effective investment strategy to secure your promissory note, we’re here each step of the way. Our trustees are not only experts in the Deferred Sales Trust, but have also sold businesses themselves to the DST.

We know the selling process can be overwhelming. That’s why we strive to make it as simple as possible for you. We examine all aspects of your finances to determine if the DST is right for you. If the Deferred Sales Trust is the best course of action, then we can help you get started on the sale of your business, medical practice, or property. Learn more about how Freedom Bridge Capital can help business and property owners defer their capital gain taxes.

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Steven Demko, OD

FREEDOM BRIDGE CAPITAL TRUSTEE

Dr. Steven Demko is the CEO and trustee of Freedom Bridge Capital, and a Deferred Sales Trust client himself. He practiced optometry in the Poconos for over 27 years before selling his private practice using the DST structure. He has decades of experience in business and practice management and has been a leading national speaker on these topics. Aside from his doctorate, he also holds degrees in finance and accounting from Wilkes University. Since the sale of his own practice, and deferring a significant amount of capital gains taxes, he has used his financial experience and expert knowledge in helping others to get the most of their hard-earned dollars by deferring capital gains taxes. Your DST team will include accountants, attorneys, certified financial planners, and estate planners, along with registered security advisers. Freedom Bridge Capital has helped their clients defer millions of dollars of capital gains taxes using the Deferred Sales Trust structure.

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