Today, Capital Gains Tax Solutions CEO Brett Swarts joins us on the show, and he is here to speak about the concept of the Deferred Sales Trust. The Trust offers a creative tax deferral strategy to property owners who struggle with capital gains tax and depreciation recapture when they go to sell their high-end primary home, business, or commercial real estate.
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The Deferred Sales Trust has an advantage over the IRC 1031 option when it comes to tax deferral. This is because 1031s often lead sellers to exchange into bigger and bigger properties, and then overpaying because of the tax. What the Deferred Sales Trust offers is a more flexible way to defer tax by acting as the middleman in transactions, and allowing the seller time to choose what to invest in next. Brett walks us through what a deal between a syndicator and a seller might look like if they opted into the trust. What he tells us seems almost too good to be true, but Brett’s method has the track record to back up his pitch, having been in the game for 23 years, closed thousands of transactions, and survived 14 IRS audits. Tune in to hear exactly what Brett is offering, and how he can help you to achieve tax deferral, liquidity, and diversification.
Key Points From This Episode:
- How the Deferred Sales Trust modifies the IRC 1031 method.
- The tax problems usually faced by property owners when they are looking to sell.
- How the Trust gives sellers the freedom to bide their time before reinvesting.
- The capital locked up in the Baby Boomer generation, and how to unlock it.
- How the Deferred Sales Trust benefits syndicators through rolling tax into a new deal
- The flexibility of the Deferred Sales Trust method in its ability to diversify future investments.
- An situation where Swart’s service could benefit both a seller and a syndicator
- The Trust’s incorporation of IRC 453 rather than 1031.
- The depreciation service the Trust offers.
- The Capital Gains Tax Solutions track record.
- How long a seller has before having to reinvest.
- The various types of fees involved in the process.
[bctt tweet=”At a certain point you say, Yup! I’m going to trust these guys, because of their track record. — @1031option” username=”Whitney_Sewell”]
Links Mentioned in Today’s Episode:
About Brett Swarts
Brett Swarts is the Founder of Capital Gains Tax Solutions. Each year, he equips hundreds of business professionals with the Deferred Sales Trust tool to help their high net worth clients solve capital gains tax deferral limitations. His experience includes numerous Deferred Sales Trusts, Delaware Statutory Trusts, 1031 exchanges and $85,000,000 in closed commercial real estate brokerage transactions. He’s an active commercial real estate broker and investor with brokerage experience and ownership in multifamily, senior housing, retail, medical office, and mixed-use properties. He is a licensed California Real Estate Broker who holds series 22 and 63 licenses. Brett was formerly an associate at the largest Commercial real estate brokerage firm in the country, has his own multifamily brokerage company now, and has years of experience and hands-on training from some of the best in the business. As a Trustee, he is passionate about educating people in Capital Gains Tax Deferral with a Deferred Sales Trust, how to divest from a business or real estate, and gain freedom from feeling hostage to a 1031 exchange, then invest back out of real estate at any time [all capital gains tax deferred]. Brett is considered one of the most well-rounded Capital Gains Tax Deferral experts and informative speakers on the West Coast. His audiences are challenged to lean into multiple Capital Gains Tax Deferral Strategies, create and develop a passive cash flow, optimal timing wealth plan of their own, and execute on this plan so they can create and preserve more wealth. Brett lives in Roseville California, with his wife, Melanie and their 5 children.
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