Delivering Value Beyond the Billable Hour

If you’re a Mergers & Acquisitions, Tax or Real Estate Attorney, then you may have an extraordinary opportunity to become a Deferred Sales Trust Attorney.

Measuring your value based on the number of billable hours is a flawed approach, as time does not necessarily reflect quality, execution or results. It’s not about how long the work takes, but the value delivered.

The Deferred Sales Trust enables you to offer incredible value to clients, prospects, and all sellers of highly appreciated assets. Owners of businesses, real estate, and other highly appreciated assets are often reluctant to sell due to the tax liability that can result, but the DST structure helps sellers defer all capital gains and depreciation recapture taxes. The average case is between $2M and $3M, some cases are over $50M, and as a DST Attorney, you’ll receive a legal fee based on a percentage of the transaction value for every case you work on.

The DST is a type of IRC Section 453 installment sale, also known as a “seller carry-back” sale. Under this code section, the seller can achieve significant tax deferral benefits by not receiving actual or constructive receipt of the proceeds at the time of the sale, instead receiving payments made to them over time. Moreover, the Deferred Sales Trust has greater flexibility than a conventional installment sale with respect to investments, risk management and the repayment timeframe.

The Deferred Sales Trust can defer capital gains taxes on the sale of almost any type of highly appreciated asset, including:

• Businesses & professional practices
• Commercial real estate
• Investment properties
• Agricultural properties
• High-end primary residences
• Major private stock positions
• Valuable artwork and collectibles