What is your opinion of the Deferred Sales Trust to postpone paying capital gains taxes. How long have they been doing it?   Does IRS accept the Deferred Sales Trust.

Already Tried:
my cpa is not knowledgeable about this.

Any help would be appreciated.  Thanks.

The Deferred Sales Trust™ was launched in late 2006 as another vehicle that could allow taxpayers to defer the payment of capital gain taxes realized on the sale of real estate or certain personal property.  This was shortly after the Internal Revenue Service eliminated the ability for taxpayers to use the Private Annuity Trust or PAT to defer the payment of capital gain taxes.  The Deferred Sales Trust is drafted pursuant to Section 453 of the Internal Revenue Code and includes significant enhancements compared to the Private Annuity Trust or PAT.  However, the IRS has not issued any direct guidance or rulings related to the Deferred Sales Trust at this point in time.  A Private Letter Ruling or PLR is anticipated this month. 

Do you have any information on whether or not the IRS has ruled on the Private Letter Ruling?  Is there an ETA?  Are you moving forward with the use of the deferred sales trust without the PLR from the IRS?  The DST seems like a very good program but I would be hesitant without an IRS ruling.  What is your thoughts on this?

thanks

Kevin

Hi Kevin,

Yes, we received verbal confirmation that the IRS has issued the PLR.  We are waiting for the hard copy (proof). We will post it on our website once we have received the Private Letter Ruling.  We have reviewed a number of these type of structures and the Deferred Sales Trust is the only one that we were comfortable with.  The PLR should be received in the next few weeks.

Was the verbal confirmation from the creators of the DST, the Estate Planning Team or the IRS?  That would be great news and thanks for posting the hard copy when you recieve it.  I would like to read it myself.

thanks

Kevin