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What is the Deferred Sales Trust with Brett Swarts
Capital Gains Tax Solutions Podcast
Thinking of selling your business, investing in real estate, deferring tax, or building long-term wealth? Look no further because you’ve come to the right place. Capital Gains Tax Solutions podcast will help you with EVERYTHING you need!Most business and real estate owners get hammered with 30-50% in capital gains tax when they sell their assets including, businesses, high-end primary homes and investment real estate and so much more. Hosted by Brett Swarts, the goal of this podcast is to make complex tax deferral strategies simple. Get clear comparisons for each strategy, deal stories, and financial freedom through wealth building, all so you can create and preserve more wealth or help others do the same. Our laser focus is on the deferred sales trust and to help you or your clients stop feeling trapped by capital gains tax. We want you to have the freedom to retire from the toilets, trash, liability, and managing employees so you can trade them for time, liquidity, diversification, debt-freedom, and passive commercial real estate investing.Brett Swarts started as a multifamily broker with the largest commercial estate brokerage firm in the nation just before the crash of 2008. He saw and felt the pain of a lot of high net worth individuals get hurt when they lost some or all of their wealth when they did not have a backup plan or an alternative to a 1031 exchange. He has learned a lot about Deferred Sales Trust, Delaware Statutory Trust, 1031 exchanges, and other tax-deferred strategies having brokerage over $85,000,000 in commercial real estate transactions and passively investing in commercial real estate with a total value of $100,000,000+.If you’re wondering if the deferred sales trust can be used for the sale of a professional practice, business, primary home, or investment real estate, or whether you’re looking to sell a highly appreciated asset and want freedom and flexibility, the deferred sales trust is for you.In the podcast, Brett will give an overview of the deferred sales trust along with other tax deferral and wealth-building strategies by brining on some rock star guests! Understand how you or your clients can benefit from a deferred sales trust or other strategies, so YOU can make more money when you sell! This podcast and the Capital Gains Tax Deferral Secrets shared within will change your wealth… and change your life!Deferred Sales Trusts are not a recent invention. In fact, they are over 24+ years old (the IRS Section tax code known as IRC 453 predates from the 1920s and is known as a “seller carry back” or “owner financing.”) The simple principles of the deferred sales trust are from this original IRC 453 tax code and are the foundation we still use today. In fact, with the 14 successful IRS audits conducted and completed for the thousands of deferred sales trusts closed, it’s important to understand where we come from, so you can feel secure for where you will stand if you move forward. Brett guarantees this podcast will help you gain clarity for your tax deferral strategy.Are you tired of the feeling trapped by the 1031 exchange? The solution is the deferred sales trust.Listen to the show now and defer tax as you have never done before so you can create more wealth in a smarter and easier way plus so much more! Join us here on the Capital Gains Tax Solutions podcast now and learn the secrets of the wealthy with investment real estate and tax deferral so you can create and preserve more wealth.
Is a deferred sales trust cuz I'm sure a lot of our listeners haven't heard of that before deferred sales trust in a manufactured installment sale to specialized installment. Sell your listeners, may know it as a seller carry-back.
Okay. And what does the a in layman's terms? What does that mean? So that's what I'm going to buy a deal for you for ten million dollars. Imagine that a zero basis and you are 4 million tax. If you don't do some time to text or I may come to you said Stacy's going to give you a $3 down payment. Would you carry a note for 7? And you say, yes and that scenario, Seth, you've received 3 million and actual receipt there, for your tax on that three. But that other seven is what's called a referral to seller carry-back. You became the bank and you carried paper, therefore, until it, if I pay you back at 7 you're unattached referral. See the taxes. The capital gains tax is not trigger.
And then obviously instead of paying it all at once, let's say you were paying me a million a year for 7 years I would pay that the tax only on that portion. Every year over time, you got it until you're going to pay and prorate Pro, rata amount, which is genotype. Someone might do a seller carry-back. So their income is not through the roof on any one particular year.
Okay. And how did you how did this come about for you? How did you discover this? How did you start this business? 2008. Something happens that he may even religious might know about it. But let me back up two years before that I started Marcus & millichap helping people buy and sell commercial. Real estate in Sacramento California mainly multi-family and I saw the blood in the streets when everything hit the fan and people lost a lot and some lost it all with with with their finances are the challenge was it's called the 1031 exchange in for your listeners. That's just the strategy or you can trade a piece of real estate for Lifetime, real estate to defer capital gains tax. People were selling of these record numbers in 05 and 06 and they were really excited. They were glad to get those numbers, but then, they had to turn around and buy an over pay for property and take on debt, and that jet became place where they got hurt. So after the aftermath and everything, hit in 2009, I learned about an alternative called a deferred sales trust and I said, what is this?
Why haven't I heard about it? Just seems like, it's too good to be true. How do we know it's illegal? And I start to study the structure and my manager that I'm brought in the gentleman, who spoke on the structure, who's not my business partner and essentially, I start to learn about it in and start the study and I have my Series 22, my series 63, but here's the key, I was looking for ways to help my clients solve problems, problems. Beyond the 1031, probably feeling trapped by capital gains tax, okay, cording to the American Bankers association, their 17 trillion-dollar set that were passed from one generation to the next. And the next twenty years in, this is known as the largest, well transfer in the history of the planet. And in 2008, a lot of those baby boomers lost a lot. It's a fast forward. We're there, ten years older and they're looking for solutions to retire from the toilets trash and liability without getting completely wiped out with 30 to 50% of their game. So this fit sets such a need for people who want to be more passive.
Want to pay off debt who want liquidity. I couldn't help but launch this company to educate as many people as I can.
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Love the podcast, good episode and clear audio! Keep these comming·1 like·
Albert Einstein said, 'If you can't explain it simply enough, you haven't understood it well enough'.Dr Andrew brings such simplicity to explaining the workings of the brain. It's actually a hacker's guide into our own brain. You are doing great service to humanity Dr Andrew.2 months ago·10 likes·