{"id":5210,"date":"2020-01-23T20:05:15","date_gmt":"2020-01-23T20:05:15","guid":{"rendered":"http:\/\/wp.mbahotels.com\/?p=5210"},"modified":"2021-01-28T10:36:21","modified_gmt":"2021-01-28T15:36:21","slug":"avoiding-selling-your-hotel-due-to-capital-gains-taxes","status":"publish","type":"post","link":"https:\/\/mba.demowork.xyz\/index.php\/2020\/01\/23\/avoiding-selling-your-hotel-due-to-capital-gains-taxes\/","title":{"rendered":"Avoiding Selling Your Hotel Due to Capital Gains Taxes?"},"content":{"rendered":"

Deferred Sales Trust May Be The Answer…<\/em><\/p>\n

4 Options When You Sell Your Hotel<\/strong><\/span><\/h3>\n

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\nIf you own a hotel, you have two options: hold or sell. If you sell your hotel, you have three options: pay capital gains tax, defer capital gains tax using a 1031 exchange to purchase a new hotel, or defer capital gains taxes using a Deferred Sales Trust (DST). <\/span>
\nWith a Deferred Sales Trust, you can avoid paying any capital gains taxes at the time of sale. Instead, you will receive the sale proceeds in installment payments over a predetermined period, typically 10 or 20 years or over your lifetime. The payment schedule is flexible, and you can also defer initial payments if you don\u2019t need the income. Capital gains taxes will be due on installment payments as you receive them. Meanwhile, the Trust invests the entire sale proceeds (pre-tax) in stocks, bonds, real estate, annuities, or any other type of investment at your direction and approval. You can let your deferred taxes earn you income. <\/span>
\nA Deferred Sales Trust is a two-part sale. Before closing on the sale to the identified buyer, you sell your hotel to a third-party trust in an installment contract which would pay you the sale proceeds in installment payments over a predetermined period. The trust would then sell the hotel to the buyer as a regular asset sale.<\/span><\/p>\n

Benefits:<\/strong><\/span><\/h3>\n