Deferred Capital Gain

General information: A Deferred Sales Trust (DST) is a sophisticated tax deferral strategy that allows individuals to sell highly appreciated assets (such as real estate, businesses, or other capital assets) and defer the recognition of capital gains taxes over time. It operates as a structured installment sale under Internal Revenue Code (IRC) Section 453. Instead of selling the asset directly, the seller transfers it to an irrevocable trust managed by an independent third-party trustee.