Tax efficiency refers to the strategic management of investments and income in a way that minimizes the amount of taxes owed, thereby maximizing the net return on investments. This involves utilizing various strategies such as tax deductions, tax credits, tax-advantaged accounts, and timing of income recognition to reduce tax liabilities. Tax efficiency can also involve choosing investments that are less heavily taxed, such as municipal bonds or tax-efficient mutual funds, and minimizing short-term capital gains, which are typically taxed at a higher rate than long-term gains. The goal is to increase the after-tax returns for individuals or entities by effectively navigating tax laws and regulations.
```html The Deferred Sales Trust (DST) offers a flexible method for deferring capital gains taxes, enhancing financial agility in real estate transactions. By converting sales into installment arrangements, the DST…