#25 | Deferred Sales Trusts feat. Brett Swarts

Practical Tax with Steve Moskowitz

On today's episode; Steve sits down with Brett Swarts, Founder/President of Capital Gains Tax Solutions to discuss Deferred Sales Trusts, 1031 exchanges, and Delaware Statutory Trusts! Episode Transcript Intro: You're listening to the Practical Tax podcast with tax attorney Steve Moskowitz. The Practical Tax podcast is brought to you by Moskowitz LLP, a tax law firm. Steve Moskowitz: Welcome, and thank you for joining us, and it's my honor to have Brett Swarts joining us. He's considered one of the most well-rounded capital gains deferral experts and informative speakers in the country. He's founder of Capital Gains Tax Solutions, and I'll ask you to give us your phone number a little bit later. And he is an exclusive Deferred Sales Trustee. He's host of "Capital Gains Tax Solutions Podcast", and a lot of other things. He has great strategic alliances and clients, and he's created and developed tremendous tax areas where we can go ahead and do all kinds of wealth planning. One of my favorites is DST, Delaware Statutory Trust. Recently, I was quoted in the Wall Street Journal about Delaware Statutory Trust, so you know how I feel about them. And he goes ahead and he's gonna create and preserve all kinds of wealth for you. He's passionate about what he's doing. His experience is tremendous with the DSTs and the 1031 exchanges, and commercial and all the real estate brokerage. And formally, he was with one of the largest brokerage firms, and now he's in Sacramento and he lives in Roseville, California with his wife and their five kids. So we know that he has to be making lots of money to make this work. And without further ado, I'd like to open the floor. And let's begin, tell us about transformational exit planning, versus transactional exit planning. Brett Swarts: Thanks Steve, a pleasure to be here. And yes, so Brett Swarts, founder of Capital Gains Tax Solutions. So transformational exit planning I like to kinda define in a couple different ways, and it can be transformational for different people in different ways, but we've all heard about financial freedom, right? You have enough income to pay for our expenses, and maybe perhaps we don't have to work anymore. We have enough passive income doing those things where we can free up some of our time freedom, which is kind of the second part of a transformational wealth plan or financial plan. The third one has to do with what's called entrepreneurial freedom, right? The ability to start a business or start a new venture or buy some real estate and doing that at what I like to call kind of the fourth freedom, which is optimal timing. And collectively, you have to look at multiple things and I actually have this, a Rubik's cube here, Steve, and I actually bought this on Amazon. And sometimes people show up to us and they have these different colors on different ends, and it's kind of outta whack and different ways of adjusting what's called tax flow versus cash flow planning. We try to create something where it's as congruent for life, for freedom of time, energy, entrepreneurial freedom. The last one has to do with location freedom, right? As at the end of the day, a lot of people are moving out of California. A lot of people are moving out of their business transactions, moving out of these high end primary homes. And our overall goal is what? It's freedom, freedom with their capital, freedom with their time, freedom with their finances, freedom with entrepreneurial ventures and then freedom with location. And then collectively, if you can bring these together with the right set of professionals, you can achieve what's called a transformational exit plan or wealth plan. Steve Moskowitz: And I can say that in practice, we see the client, so just leaving California in droves, and it's so important because California is an extremely aggressive state and people think, "Well, I'll just move and that's that, "and I don't have to pay those taxes anymore.