The relationship between the Deferred Sales Trust and the tax code is often asked about by potential investors. The Deferred Sales Trust has been a legal strategy for over two decades and is considered a safe investment strategy with a stellar track record. Still, many investors have never heard of the option to sell your assets to a DST.
When they ask their accountants or financial advisors, even they are not too familiar. As a result, we field many questions from owners who would like to invest in the Deferred Sales Trust, but are unsure of the legalities. In other cases, investors want to know how the Deferred Sales Trust differs from other capital gains deferral strategies, like the 1031 exchange.