Deferred Sales Trust — Side‑by‑Side Comparison

5% Return • 2025 MFJ LTCG (simplified) • 5/10/15/20 yrs

This tool compares two simple paths for a one‑time sale:
1) Pay tax now (no DST) and invest what’s left, versus 2) Use a DST, pay a small setup fee, get interest-only payments each year, and pay the long‑term capital gains tax at the end when the principal is paid back.

We’ll assume this is the taxable long‑term gain. Max $50,000,000.
Interest-only during the term; principal is paid back at the end.
Used for both paths for a fair comparison. If unsure, leave at 5%.
What we assume 2025 long‑term capital gains brackets (MFJ, simplified) • Ignore NIIT & state taxes • Same growth rate for both paths • DST setup fee is taken out upfront.
What do these terms mean?
Without DST (pay tax now): You pay the long‑term capital gains tax today and invest what remains. Your money grows at the rate you entered.
With DST: You pay a one‑time setup fee (1% of sale, min $2,500, max $10,000). The rest sits in the trust and earns the same rate. Each year you receive interest‑only payments. At the end, the trust pays back the original amount (the principal). That’s when the long‑term capital gains tax is due.
Why keep the rates the same? To keep this a straight apples‑to‑apples comparison. We’re looking only at the timing of taxes and the DST fee.