In this episode of the Accredited Investors Only podcast, Peter Neill dives into a transformative tax strategy that could change the way accredited investors think about capital gains. Joined by Brett Swarts, founder of Capital Gains Tax Solutions and a deferred sales trust expert, Peter explores the concept of the Deferred Sales Trust—a flexible alternative to the traditional 1031 exchange. Unlike a 1031, this method works for a wide range of assets, from real estate and businesses to crypto and stocks. Brett explains how this strategy offers the freedom to invest on your own terms, while still deferring taxes. You’ll learn about the mechanics, benefits, and real-world examples of how it’s being used to protect and grow wealth. Tune in to understand how you can multiply your financial freedom and make the most of your investments.

Key Takeaways:

1. Deferred Sales Trust Flexibility: The Deferred Sales Trust isn’t limited to real estate like the 1031 exchange; it can be applied to various assets, including stocks, businesses, and even cryptocurrency, making it a powerful tool for accredited investors.

2. Strategic Tax Planning: Timing is crucial in investments. Brett explains how the Deferred Sales Trust allows investors to sell high and wait for favorable market conditions to reinvest, thus avoiding the pitfalls of rushing into investments.

3. Investment Diversification: Unlike a 1031 exchange that typically locks you into another real estate property, the Deferred Sales Trust gives you the option to diversify across different asset classes, from T-bills and stocks to new business ventures.

4. Real-World Success Stories: Brett shares compelling examples, such as helping a Bitcoin investor and real estate owners, to illustrate how the Deferred Sales Trust preserved and grew their wealth, highlighting its practical and significant impact.

5. Legal and Proven Strategy: With a nearly 30-year track record and no issues in multiple IRS audits, the Deferred Sales Trust stands as a well-tested, legally sound strategy that many investors are only just beginning to discover.

Episode Highlights:

[0:00] - Introduction

[1:10] - Introduction to Brett Swarts and the concept of the Deferred Sales Trust.

[3:45] - How the Deferred Sales Trust differs from the 1031 exchange, offering broader flexibility and benefits for various asset types.

[6:30] - The importance of strategic timing in investment and tax planning, and how Brett’s approach avoids common pitfalls.

[11:15] - Real-life examples, including cases of diversifying investments from Bitcoin and major real estate transactions.

[14:40] - Breaking down the process of setting up a Deferred Sales Trust and the role of third-party trustees.

[20:35] - Discussing common objections, legal history, and why most investors haven’t heard of this method before.

[27:55] - How Deferred Sales Trusts can help syndicators and fund managers unlock capital rather than just raise it.

Links & Resources:

• Brett Swarts’ Book: https://www.amazon.com/Building-Capital-Gains-Exit-Plan/dp/B0C2SJHHVJ

• Capital Gains Tax Solutions: capitalgainstaxsolutions.com

Closing Remarks:

Thanks for tuning in! If you found this episode enlightening, don’t forget to rate, follow, and share the podcast. Your support helps us bring more valuable content to the accredited investor community. See you in the next episode!