It was once said that tax mitigation involves the use of tax laws to achieve anticipated tax advantages embedded in tax provisions. We are firm believers in that statement. Our clients do not look to evade taxes but ask us to evaluate and introduce a number of the following techniques to mitigate potential taxable events in their lives.
Real Estate Related Concerns: Capital Gains
Delaware Statutory Trust
DST investments are offered as replacement property for accredited investors seeking to potentially defer their capital gains taxes through the use of a 1031 tax-deferred exchange and as straight cash investments for those wishing to diversify their real estate holdings. The DST property ownership structure allows the smaller investor to own a fractional interest in large, institutional quality and professionally managed commercial property along with other investors, not as limited partners, but as individual owners within a trust. Each owner receives their percentage share of the cash flow income, tax benefits, and appreciation, if any, of the entire property. DSTs provide the investor with the potential for annual appreciation and depreciation (tax shelter) and most have minimum investments as low as $100,000, allowing some investors the benefit of diversification into several properties.