When Should Someone Reach Out to Someone Like Brett

[Brett P Swarts]

Juan Vargas:

Ideally, when should someone reach out to someone like you? I mean, if I'm not for sure, right now that I want to do the Deferred Sales Trust, the first time. I'm thinking about it, if I'm gonna have a sale, you know, she'll reach out to you, two months in the head or like, whenever I have a contract or a deal.

Brett Swarts:

We think the best time is now, meaning if you want to create and preserve more wealth and create what's called a tax-deferred wealth plan. Ideally, you're exploring all of these tax deferral strategies before you're in the emotion of selling a property and you got 21 days to close. And there's all this stuff moving, you just want to be clear-minded, and you want to bring in your trusted professionals and, you know, ask all the tough questions and really understand it, get educated. We want to educate you and really grasp it, so you feel empowered by it. And that's really our goal, our goal is just the guide. We're just going to guide you along the way. We're going to guide you through our deals, and we're going to educate you, and then you're going to bring in your trusted advisors to get their blessing. Just like the 1031, imagine 25 years ago, would want you to know about the 1031. Then all of a sudden you learn about it right? And then you get empowered by it, how much that helps you to grow your wealth, right and have strategies.

So now touch on two of those two, by the way, part of what you'll learn in the education is how to get a brand new depreciation schedule. So with the 1031 exchange, you don't have a brand new depreciation schedule. In fact, your depreciation schedule travels. So we'll walk through an example one, imagine you own a $10 million multifamily property for the last 27 and a half years. And imagine you took all the depreciation so you have zero depreciation. Well, if you sell and buy another property for 10 million, guess what you have still have a zero depreciation schedule. But if you sell and buy that same property after you sold, you put the funds into the trust and bought that property, you get a brand new $10 million depreciation schedule. So that's really powerful. So as soon as you understand that, and as soon as you execute this strategy, you can buy about the same property. What about the 1031, you just buy through the trust? All of a sudden, you know, those fees are just go out the window, because you've just saved maybe hundreds of 1000s if not millions of dollars on on on income tax, right? Because you've been offset the depreciation, you can also do accelerated depreciation on that new deal. And the second one is the estate tax. So if any ultra-high net worth individuals are listening to this podcast, understand that that the estate tax has nothing to do with capital gains tax. So a lot of people have this misconception that I can just own real estate 1031, get a stepped-up basis, and walk away, tax-free. It's true, you can walk away, capital gains tax-free, and by you, it's really your kids, right or your heirs, they could walk away capital gains tax-free, but it has nothing to do with the estate tax. Okay, so the estate tax is anything above and beyond the exclusion amount, so 22 million if you're married, and 11 million if you're single. So imagine one year worth $52 million. Imagine all this inside your taxable estate, you die, you get a stepped-up basis for the 52 your kids do, but that other 30 million, the 52 minus the 22, which is 30 is going to be hit with a 40% death tax. That's painful, right? Very painful. Yes. So the intent is to get it outside the taxable estate challenges the 1031 doesn't do that. Now, most people do this gifting, and then they run out of gifting. And they just they don't run out, they run out of time, they can't get it out fast enough. The solution is to get it out all in one day. And one transaction by selling let's say that was a $30 million apartment complex. And moving into the deferred sales trust, and also moving it outside of taxable estate one day one transaction, and you need to save your estate 112 million dollars, which is 40% of that 30 million. So those are the reasons why we want to have this tax-deferred wealth plan created, we want to essentially take a snapshot of everything you have going on and chart out the course of it. And one course just stays with the 1031 and keeps doing that or when choices go with the deferred sales trust. And then we start doing the ROI for all of the benefits on this site and you do the ROI for this site and you match it up and you decide what you want to do. But we think as soon as you get empowered with this, it'll change the way you sell and buy real estate forever. Also, by the way, DST works for businesses 1031 doesn't work for businesses. It works for work for works for Bitcoin, it works for high-end primary homes, the 1031 doesn't work for those things and works for private and public stock. It's also a seamless partnership separation. So we want to touch on these syndicators out there who are listening right now as syndication most of the syndicators we work with are opportunists. They don't allow 1031 into their deals. I mean, they might carve out a TIC into common for some but most of the time they it's just too complicated. They also don't tend 31 out of their deals, meaning everyone brings in, pays their tax comes in with the money and then they sell this big profit everyone pays tax and they bring it to the next deal. Well guess what the deferred sales trust is great because the whole entity doesn't have to move, we can have, let's say, 10 investors, and all 10 could have their own individual deferred sales trust. And we're saving that 30 to 50%. Okay, now follow me here, some of them may not want to do deferred sales trust, which is fine, let's say five don't want to do is pay their tax, the other five can, we don't have to follow the rules of the whole entity moving like the 1031. So we have a seamless partnership separation, then again, it also works for carried interest, which is capital gains tax right now, if you didn't know that. And so, this empowers the operator to not only attract more wealth, because someone might say, sell a high-end primary home, or sell a business or sell Bitcoin or sell something, and then put it into the trust and now they can invest into your syndication. And it also empowers the syndicator on the way out to give more of their investors a better return on their money, because we're saving that 30 to 50%. So I'll pause there said a whole lot. Make sure you caught all that.

Learn more about Deferred Sales Trust
Visit: www.capitalgainstaxsolutions.com