Are you tired of paying high capital gains taxes every time you sell a property? Well, I have some great news for you! In this episode, I had the pleasure of speaking with Brett Swarts, founder of Capital Gains Tax Solutions, who is considered one of the most well-rounded capital gains tax deferral experts in the US. Brett shared some insights on how to defer your capital gains taxes using the deferred sales trust.
Brett explained how the deferred sales trust is different from other solutions like 1031 exchanges. He emphasized that the biggest advantage of a deferred sales trust is the freedom it provides in terms of timing. Unlike a 1031 exchange, there are no requirements to invest in like-kind property within a short period of time. Brett also shared some success stories of clients who have used the deferred sales trust to their advantage.
However, Brett also discussed the risks of not implementing the deferred sales trust properly. He clarified that the number one risk of not implementing it properly is that it may not work at all. This can happen if the purchase and sale agreement is not properly structured, and the capital is taken in a way that triggers the tax. Another risk is not having a clear plan and experience with the investments that the money is being put into, as all investments carry risk.
Brett emphasized the importance of having a team to set up the trust properly and execute the investments. He advised engaging an expert as early as possible and explained the process of setting up a deferred sales trust.
In conclusion, if you’re looking for a way to defer your capital gains taxes, the deferred sales trust might be the solution for you. As Brett said, “It’s not about how much money you make, it’s about how much money you keep.” So, don’t miss out on this opportunity to learn more about capital gains tax solutions and how they can benefit you.
To hear more from Brett Swarts and learn about capital gains tax solutions, tune in to the Capital Gains Tax Solutions podcast.
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