Ballpark comparison. Without DST you pay LTCG tax now and invest the after-tax amount at 5%. With DST you invest the full amount at 5%, receive 5% interest-only payments annually, and a balloon principal at the selected note end (LTCG tax applied that year). Includes DST setup fee: 1% of sale (min $2,500, max $10,000) applied to DST only.
Max $50,000,000 • Used here as the fee base
Interest-only at 5%; balloon at end of term
Assumptions5% return • Ignore NIIT & state taxes • Do not tax annual 5% growth • DST setup fee = 1% (min $2.5k, max $10k) deducted upfront from DST principal
End-of-Term Total (Without DST)
$0
End-of-Term Total (With DST)
$0
Difference at End of Term
+$0
Upfront LTCG Tax (No DST)
$0
DST Setup Fee (applies to DST only)
$0
Effective Fee % of Sale
0%
Trust Principal After Fee (DST)
$0
Balloon LTCG Tax (DST)
$0
Annual Interest Payment (DST)
$0
Monthly Payment (DST)
$0
Year
Without DST — EoY Balance
With DST — EoY Total
Difference (With − Without)
Notes: Long-term capital gains (LTCG) taxes use simplified 2025 MFJ brackets in isolation (0%/15%/20%). NIIT (3.8%) and state taxes are excluded. The 5% return is treated as a pre-tax effective return in both scenarios for apples-to-apples comparison. DST setup fee is modeled as paid from DST proceeds upfront, reducing principal and all subsequent DST cash flows. This is a planning aid, not tax advice.