Deferred Sales Trust — Frequently Asked Questions
Straight answers to common DST questions: how it works, risks, fees, and when it fits a business owner's exit.
- When a DST fits (and when it doesn't)
- Trustee, fees, and distributions
Quick answers
- Is a DST legal and IRS-recognized?
- A DST uses installment-sale principles under existing tax law. It must be implemented and administered properly by qualified professionals.
- What deal size is typical?
- DSTs are generally considered for transactions with $1M+ in gains or $2M+ sale value due to costs and complexity.
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