[01:41] – Hosts Adam Carswell and Michael Flight, CEO of Liberty Real Estate Fund, introduce Brett Swarts, Founder of Capital Gains Tax Solutions

[4:46] – What has led Brett to pursue commercial real estate and Deferred Sales Trusts (DSTs)?

• Triple Net deals have credit-tenants backed by large corporations that can protect and preserve wealth, unlike Multifamily deals that people can overpay for with 1031 exchanges.

[15:50] – What are some of the frequently asked questions investors ask Brett about DSTs?

• “Who is this for?”: Anybody who is selling a highly appreciated asset that has at least $1M in net proceeds and $1M net gain can enter into a DST deal. DSTs can also be for people who have two assets that they can combine to have at least $1M in net proceeds and $1M net capital gain.
• Cryptocurrency assets are very attractive for a Deferred Sales Trust because you have the ability to make quick transactions with minimal friction closing those deals.
• DSTs also work for primary home owners, unlike 1031 exchanges that only work for investment real estate.
• You can use a Deferred Sales Trust to invest in your own company.

[27:20] – What does the process look like for investors who do a DST deal?

• There are about five hours of work for investors to connect with Capital Gains Tax Solutions, including the introductory call investment run-down and consulting with investors’ teams of attorneys and professionals. Once the DST is set up and connected with the investor’s accounts, the company can begin closing deals within one week.
• Each partner in a deal can set up an individual DST to control, making them the sole creditor of their investment.
• Investors with a DST can have their funds sent to a qualified intermediary to defer the sales tax.

[30:26] – What is the Lifetime Audit Defense?

• One of the biggest questions asked with a DST is, “What happens if I get audited?”
• The Lifetime Audit Defense is the law firm that protects investors from the IRS; they have never had a single negative result in tens of thousands of tax returns for trust they have managed with over a dozen no-change IRRS audits, including three formal audits.
• If the State or Federal Governments wants to audit you, the Lifetime Audit Defense will defend you at no additional charge

[31:21] – What large companies and investors have utilized DSTs with Capital Gains Tax Solutions as proof that the method is solid?

• PIMCO, one of the largest investment management firms in the world.

[35:51] – Are there any threats to DSTs and how does Brett’s business defend against them?

• Though the government is currently trying to limit the investment size for 1031 exchanges by changing the tax codes, DSTs are in a different tax code and are not on the government’s radar.
• Part of the nature of the Deferred Sales Trusts is that the funds must be invested into something that is not a personal property.
• DSTs essentially create additional capital to create jobs, additional wealth and tax revenue for the government.
• The only threat is that if DSTs get too popular and people push the boundaries, the IRS could shut down the strategy for everyone. Competition is another small threat, but many CPAs are not familiar with the structure of DSTs and will not recommend this method until they learn about it.

[42:31] – What is eXp Commercial and what are the company’s benefits to commercial real estate brokers?

• eXp Commercial is a worldwide organization with over 80,000 MNA advisors, commercial real estate agents and residential real estate agents that allows Capital Gains Tax Solutions to build teams in a way that creates long-term loyalty, passive cash flow and stock ownership.
• The organization has created an ecosystem of brokers with technology, innovation and culture.

[31:26] – What resources does Capital Gains Tax Solutions offer for those who want to learn more?

• Join the Mastermind
• Building a Tax Deferred Exit Strategy – The goal of this book is to help you unlock your ideal wealth plan for yourself or your clients when selling any asset and what freedom and flexibility with your exit strategy while deferring capital gains tax

[45:23] – How can DSTs protect investors against estate taxes?

• With a Deferred Sales Trust, you can exit an asset and move it outside of your taxable state within one day without buying insurance or giving away all of your gains to charity.