Can I use my Deferred Sales Trust to get back into a primary home capital gains tax-deferred?

Created by Client Experience Team, Modified on Wed, 15 May, 2024 at 2:24 PM by Client Experience Team

No. However, the DST interest earned on the note is considered income and can help you qualify for a home loan. Also, a larger principal part of the DST balance can be distributed out of the trust for a down payment, however, you would pay capital gains on this amount. Also, an installment note is considered a steady stream of income and does not need to be seasoned for 2 years as some sources of income need to (as long as the note has at least 2 years of income set to pay to you).

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