Episode 029: Nothing But Net – NNN Show IS THIS THE BEST TAX SAVINGS STRATEGY EVER?

Nothing But Net - NNN episode NNN029 BRETT SWARTS EXPLAINS TAX STRATEGIES FOR NNN REAL ESTATE AND DSTs. Brett Swarts is a Capital Gains Tax Deferral Expert and Founder of Capital Gains Tax Solutions.

Episode 029: Nothing But Net - NNN Show

IS THIS THE BEST TAX SAVINGS STRATEGY EVER?

Nothing But Net - NNN episode NNN029 BRETT SWARTS EXPLAINS TAX STRATEGIES FOR NNN REAL ESTATE AND DSTs. Brett Swarts is a Capital Gains Tax Deferral Expert and Founder of Capital Gains Tax Solutions.

BRETT SWARTS EXPLAINS TAX STRATEGIES FOR NNN REAL ESTATE AND DSTS 

In this episode, hosts Adam Carswell and Michael Flight join Brett Swarts, Founder of Capital Gains Tax Solutions, to discuss tax savings strategies for real estate gains, cryptocurrency gains and business sales. Bretts explains the Deferred Sales Trust (DST), a tax saving strategy for highly appreciated Ethereum, cryptocurrency and real estate that can help you trade your capital gains into more stable real estate, all without a 1031 exchange. Michael, Adam and Brett also lay out the process of DST deals and how investors protect, preserve and grow their wealth with the secure structures in place. Closing the show, they touch on estate taxes and how a Deferred Sales Trust can save you thousands while having freedom and flexibility with a preferred exit strategy for your investments.

Related Link: 1031 Exchanges – Swap Till You Drop

Learn more about International Investing and all things Triple Net on other episodes of The Nothing But Net – NNN Show.  This show is a podcast all about the benefits of acquiring and owning Net Lease Properties (also known as NNN, Triple Net, Triple-Net Single-Tenant or Single-Tenant Triple-Net Lease properties). Listen to  or watch this podcast on the Liberty Real Estate Fund Nothing But Net YouTube channel.

Guest Resources

Capital Gains Tax Solutions – Create a clear Deferred Sales Trust exit and wealth plan for your sale at the Capital Gains Tax Solutions.

IRC 453 Tax Code –  Income from installment sales is to be reported under the installment method, with income recognized simultaneously and in proportion to payments received on the sale.

3 Key Takeaways

  1. 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.
  2. In order to have any market advantage, investors have to be hyper-specialized in a niche while being geographically and asset-class diversified.
  3. 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.

Sponsors

Liberty Real Estate Fund: Providing monthly cash flow from brands you know and trust. Learn more at LibertyFund.io!

Blockchain Real Estate Summit: The annual event for learning, meeting and collaborating on all things Real Estate Blockchain, Real Estate Tokenization and Security Tokens. Learn more at our website!

Show Notes

Tax Saving Strategies with Brett Swarts

[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.

Brett Swarts, Capital Gains Tax Deferral Expert

Headshot of Brett Swarts, Founder of Capital Gains Tax Solutions

Brett Swarts is considered one of the most well-rounded Capital Gains Tax Deferral Experts and informative speakers in the U.S. He is the Founder of Capital Gains Tax Solutions, is an exclusive Deferred Sales Trust Trustee, host of the Capital Gains Tax Solutions podcast and an eXp Commercial Multifamily Broker in Sacramento,CA.

His Millionaire Clients are challenged to create and develop a tax-deferred transformational exit wealth plan using The Deferred Sales Trust™ (“DST”)  so they can create and preserve more wealth. Brett is the host of the Capital Gains Tax Solutions podcast. Each year, he equips hundreds of Millionaires to break out of capital gains tax jail. He also equips business professionals with the DST tool to help their high net worth clients break out, too.

Mr. Swarts is passionate about educating high net worth individuals in capital gains tax deferral with a Deferred Sales Trust, how to divest from a business, cryptocurrency, highly appreciated stock, primary residence or investment real estate to gain freedom from feeling hostage to capital gains tax or a 1031 exchange, then invest back into a new business venture or investment real estate at any time [all capital gains tax deferred] which he calls optimal timing.

His experience includes numerous Deferred Sales Trusts, Delaware Statutory Trusts, 1031 exchanges and $400,000,000 in closed commercial real estate brokerage and Deferred Sales Trust 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 has held series 22 and 63 licenses. Brett was formerly an associate at one of the largest CRE Brokerage firms in the country (Marcus & Millichap), is also a Multifamily Broker with eXp Commercial.

Contact Brett Swarts: http://www.capitalgainstaxsolutions.com

DISCLOSURES, LEGAL AND TAX COUNSEL

Adam Carswell, Michael Flight, Concordia Realty Corporation, Liberty Real Estate Fund I LP, Liberty Equity Management LLC and their affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction or undertaking. We highly encourage individuals and investors to seek the counsel of a qualified attorney as well as seek the counsel of a tax professional or Certified Public Accountant (CPA) to determine if there are any potential tax liabilities or consequences as a result of anything contained herein. NO GUARANTEE: All users of this website should understand there are NO GUARANTEES of any success, outcome or profitability of any transaction or undertaking, expressed or implied by Adam Carswell, Michael Flight, Concordia Realty Corporation, Liberty Real Estate Fund I LP, Liberty Equity Management LLC or any of their members, shareholders, officers or affiliates and will NOT be liable for any financial or other losses or damages incurred as a result of any undertaking. Go HERE to view complete DISCLOSURES.

Nothing But Net is hosted by:

The Nothing But Net – NNN Show is a presentation for Liberty Real Estate Fund which is built on the wealth creating cash flow benefits of Net Lease properties.  You can find out more about Liberty Real Estate Fund by visiting our HOW IT WORKS page or you can schedule a call with one of our advisors:

*Note: Liberty Real Estate Fund LLC and Liberty Equity Management LLC (collectively “Liberty”) have made every attempt to ensure the accuracy and reliability of the information provided. Liberty cannot not accept any responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information contained herein. The information herein should not be considered legal advice, tax guidance, or financial counsel.  You should consult your own professional advisors before making any decisions or investments.

About the Podcast Hosts:

Picture of Michael Flight, CEO of Liberty Real Estate.

Michael Flight was named the Godfather of Blockchain Real Estate by Forbes Crypto.  Michael achieved that distinction by co-founding Liberty Real Estate Fund, the World’s First Net Lease Security Token Fund, creating the Blockchain Real Estate Summit. More recently co-founding Invest On Main (IOM.ai) the Real Estate & Alternative Asset marketplace of the future and AcceleratedLaw a faster, cheaper way to create and tokenize securities offerings! 

Michael is a real estate entrepreneur and real estate tokenization pioneer who is an expert in retail real estate investment, redevelopment and real estate on the blockchain.  He started his commercial real estate career in 1985, and then co-founded Concordia Realty Corporation in 1990, which continues to partner with some of the world’s most well-known banks, insurance companies, hedge funds and institutional investors in many successful investments.

Liberty Real Estate Fund LLC is The World’s First Single-Tenant Net-Lease Security Token FundTM, joining 30 plus years of institutional real estate investment experience with blockchain technology to deliver very stable, diversified, tax efficient returns combined with liquidity, security and transparency.

Liberty is a real estate investment fund that acquires Single-Tenant Net-Leased (NNN)  essential business retail, auto service and medical properties in the United States. It is designed for investors to achieve: Geographic Diversification; Industry Diversification; Tenant Credit Strength and is built with hard assets that have intrinsic value. Our portfolio of Net Lease properties is constructed with brand-name Essential Businesses operating in high growth markets throughout the United States. These Net Lease assets have long term contractual rents backed by excellent brand name, well capitalized companies.

Liberty is focused on investing in high quality, well located Single-Tenant Net-Leased (NNN) properties in targeted high growth, low tax areas of the United States.  The portfolio has been specifically designed to provide stable, recession resistant income combined with inflation protected wealth preservation and equity growth.

DISCLOSURES, LEGAL AND TAX COUNSEL: Liberty Real Estate Fund LLC and Liberty Equity Management LLC (collectively “Liberty”) and their affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction or undertaking. Liberty highly encourages individuals and investors to seek the counsel of a qualified attorney as well as seek the counsel of a tax professional or Certified Public Accountant (CPA) to determine if there are any potential tax liabilities or consequences as the result of anything contained herein.  NO GUARANTEE: All users of this website should understand there are NO GUARANTEES of any success, outcome or profitability of any transaction or undertaking, expressed or implied by Liberty or any of its members, shareholders, officers or affiliates and will NOT be liable for any financial or other losses or damages incurred as a result of any undertaking. Go HERE to view complete DISCLOSURES.

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