Updated over 3 years ago on .
The Benefits of the Deferred Sales Trust
Brett Swarts knew he wanted to work in real estate at a young age. He grew up with a single mom, poor, but had a large vision in mind. When he got married, he took the leap to find solutions for his clients that really work. In comes the deferred sales trust as an alternative to a 1031, and it can be used even in the event of a failed 1031.
The main advantage according to Brett is that you don't have to pay capital gains on a sale. Instead, you are lending the money to this trust, where it can be put to use in the economy. In this sense, it is a big win for the government too because the money starts to circulate. This is why the IRS is on board with this solution and it's 100% legal. However, there is only really one law firm that does this deferred sales tax the way that Brett Swarts does. It's no wonder that signing an NDA is part of the agreement. Brett Swarts explains that if you want to take money out of the sales trust, all you have to do is pay the income tax on it. The DST is usually for ten years but it can be renewed. It can even be inherited in families.
Since Brett Swarts lost everything in 2008, he understands the need for a novel solution in selling property that doesn’t involve being hit with the double whammy of capital gains tax as well as income tax.
There really is a lot of information about the deferred sales trust in this podcast. Even Brett Swarts says you might hear the information and be overwhelmed. The government is bringing in new regulations, but so far, this system for the deferred sales trust works for avoiding previously inevitable taxes on sales.
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