Business owners often fear capital gains taxes associated with the sale of their company or Realestate. A Deferred Sales Trust offers options to deal with the capital gains tax, and could save you thousands of dollars.
With a Deferred Sales Trust the owner sells their property to a trust owned by a third-party company. The trust sells the property or stock and pays you with an “instalment contract” for an agreed period of time. The payment schedule can be flexible: if you don’t need payments immediately they can be deferred.
With this approach capital gains taxes are not due until you start receiving instalment payments and the tax amounts are proportional to the number of payments defined in the instalment agreement.
Thinking of selling your business? With over 32 years of experience and 800 successful closings Proforma Partners can help you with your exit plans. Contact a Proforma Partners Advisor and discuss the next steps to maximize your sale price and manage your capital gains.