Sometimes I'll do some high-level ninja-trick podcasts that dive deep into some really important marketing angles... and capital gains tax is one of those sticking points.
You might be wondering what does a defunct movie rental business and a flouring, $161 million streaming business have to do with capital gains tax, let alone luxury real estate?
It's the analogy, my brilliant guest, Brett Swarts uses to describe the advantage of using a deferred sales trust over a 1031 exchange. He's the CEO of Capital Gains Tax Solutions and an expert in alternative to capital gains tax.
Right now, the luxury market is the hottest it's ever been. However, there are certain properties out there, at certain price points where it's still difficult to sell. It's called a buyer's market.
That's why I have Brett with us today - to talk about a possible solution for your clients. If you're representing a seller this might help to alleviate some potential objections.
As a matter of fact, capital gains tax is one of the top objections.
I want to help you be able to deliver a solution to your clients that's easy to articulate... so that A, you'll win the client over and B, you have this asset that you can sell by providing a different, unique solution.
You can contact Brett on his website at https://
If you're interested in becoming a deferred sales trust expert or get coaching, you can download his free ebook here: https://www.experttaxsecrets.
Brett's YouTube Channel: https://www.youtube.com/
Brett's Podcast: https://
“Life’s too short to feel trapped by capital gains tax.” -Brett Swarts
Three Things You’ll Learn in This Episode
✔️ The 1031 Exchange (the Blockbuster way):
The 1031 exchange, (aka Delaware Statutory Trust) is the antiquated, Blockbuster way.
In broad terms, a 1031 exchange is a swap of one business or investment asset (like for like) for another. Although most swaps are taxable as sales, if you come within 1031, you'll either have no tax or limited tax due at the time of the exchange.
Brett states they are the transactional way of doing things and work fine for most people. However, he advises it does not work for: primary homes, businesses, cryptocurrency, or luxury homes.
✔️ The Deferred Sales Trust (the Netflix way):
This is the transformational, polished Netflix way.
A deferred sales trust is a legal contract between an investor and a third-party trust in which the investor’s real property is sold to the trust in exchange for predetermined future payments, (installments) over an agreed-upon period of time.
It provides an alternative to 1031 exchanges for deferring capital gains taxes.
And it can work on both primary and luxury homes, investment property, businesses, and cryptocurrency.
✔️ Privacy is Luxury:
It’s a legitimate concern with high net worth clients.
The whole process is confidential. The trust is under a made-up name that the client chooses.
The trust itself is a single entity, a business trust that only does business with that particular client. They don't co-mingle with anybody else. Everything has to be signed by them for funds to move or be invested.
Brett’s business will have all of the pieces in place to make you and your client feel comfortable as well as anonymous. There have been some celebrities that have gone through this process.
Brett is a Deferred Sales Trust expert, capital gains tax deferral expert, investment real estate expert, multifamily broker, and the founder of Capital Gains Tax Solutions – a company helping individuals to defer capital gains tax on the sale of their highly appreciated assets, eliminate the need for a 1031 exchange and deliver a transformational wealth plan so they can create and preserve more wealth.