Unlocking Wealth: Navigating Real Estate and Business with Tax Solutions and Resilience

Ever felt trapped by the looming capital gains tax when selling your business or real estate? Join us as Brett Swarts, founder of Capital Gains Tax Solutions, reveals how the Deferred Sales Trust can unlock wealth and provide freedom for high-net-worth individuals. From tackling the real estate market to embracing life's adventures with his family, Brett shares insights into leveraging tax strategies, lessons from the 2008 financial crash, and the power of surrounding yourself with growth-minded people. Listen in to discover how intentionality, resilience, and innovative tax planning can transform your wealth, lifestyle, and legacy.

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Unlocking Wealth

Speaker 1 0:02

Have you ever felt trapped by taxes when selling a property or business , unsure how to move forward without losing a big chunk of your hard-earned gains ? Today we have Brett Swartz with us , a master at helping people unlock their wealth through smart tax strategies . He's the founder of Capital Gains Tax Solutions and he's helped countless individuals and families keep more of their wealth through something called the Deferred Sales Trust . Brett , to get started , what's the one thing you would like people to know about you ?

Speaker 2 0:27

Oh , thanks so much . The one thing I want you to know about me . Oh , man , let's see . So if I had to narrow it down , I would say I really want them to be encouraged today that you can grow beyond what you might think is not possible in certain strategies for business , right ? So I want them to be empowered and excited , especially if they're in the real estate world , especially if they're trying to list that property for that big time seller , that deal they're chasing . I want them to be empowered today and feel like , hey , this next 30 minutes or so , I have this strong strategy now that I can add value in a huge way .

Speaker 1 1:05

I love that , and you are also in real estate as well , correct ?

Speaker 2 1:08

Yeah , I'm a real estate broker by trade . I refer business out now because we're so focused on what we do here , but that's where I started out , at Marcus and Millichap , helping people buy and sell multifamily investment properties in California and then also building houses with my parents in the Bay Area of California . So it's been in my life by my entire world .

Speaker 1 1:25

How do you go from California to Florida ? We did that like two years ago .

Speaker 2 1:29

I find our five kids and kind of a new adventure right . We had never in COVID hit and like life is really short . We learned . And number two , everything was shut down in California . So we're like let's go to Florida for vacation , florida , and we've been all over like already so far . Yeah , it's been a big adventure . That's been the main thing . We love california it'll always be home but at the same time we love florida right now so I love saint augustine myself .

Speaker 1 1:57

It's one of my favorite places to go . In fact , I remember some linguine and clam dish that I had there . I can never get it out of my mind . As well , as there's a little Christmas shop there , the Pesky Pelican . I don't know if you've ever been there , but it is adorable , so I love it there and it's definitely on my radar of my future . But I also read something about you being a success certified coach . What does that mean ?

Speaker 2 2:16

Yeah , so I had a chance to study and practice under some amazing coaches and mentors . Now one of them is a coach , coaches me every week and it's it's success . You heard of success magazine . It goes back like 120 years . Jim Rohn , tony Robbins , all these they featured the best , some of the best leaders and leadership specialists in the world , and so that's what it was , and so it's they certified coaching within success as the brand , as the company gosh .

Speaker 2 2:39

I mean consultations that convert understanding and linking the need versus the outcome for the person that you're working with . I understand the difference between coaching and consulting , like there's so many things that you're like , oh yeah , that makes sense . It's different when I'm a consultant versus a coach , right , it's different about communication , so it's it's growth , it's leadership , it's it's a ton of cool stuff . So I would just say that I was able to take a certification and get certified , and so it's just another thing . To help help my clients is really what I'm focused on and helping my people that I work with , like yourself and others across the country , to deal , to live out and be their best .

Speaker 1 3:14

I love that and I , you know I've followed Napoleon Hill and he literally was a big part of success .

Speaker 2 3:20

Yes .

Speaker 1 3:21

I love that . It's very exciting and I was super happy when I saw that . So one thing you've worked with clients across real estate , securities and business investments . What has been the most rewarding part of helping people grow and protect their wealth ?

Speaker 2 3:32

Yeah , it's the freedom that they can unlock for their family , right . So it's hearing these stories from these clients who are tired of the toilets , trash the liability , who are in debt and or they're real estate rich or business rich , maybe cashflow a little bit light , right , and they're looking to unlock transformation in their next part of their journey . And so , whether they've been looking to retire some and or be an entrepreneur on a different lane , what we do , what we provide , unlocks that freedom . And when you unlock the freedom , we find that it unlocks the impact . And so here at Capital Gains Tax Solutions , we exist to multiply freedom and impact , and we do that through capital gains tax exit planning .

Speaker 2 4:06

And when you can do this for families that otherwise didn't think it was possible , their CPA didn't know how to do it or their real estate agent hadn't provided the solution yet , and all of a sudden , like it just explodes , everything they thought they knew about wealth and real estate . And these are , you know , let's say , five to 50 million dollar net worth clients , and some of them are $100 billion , and they had not even thought it was possible . And so it's very rewarding to bring something that is such a game changer for the family for more time , more energy . Maybe they can separate from that partner a little bit easier . They can diversify the wealth and it empowers them and they find so much value in it and when they do , that's like one of the most rewarding things that we provide for people .

Speaker 1 4:42

I love it . So what has been one of the biggest lessons you've learned in navigating the real estate market over the years ? Cause , as you know , right now is most unique real estate market I've seen in 20 years . It's , it's difficult and we had , you know , three great years post-COVID . Covid was great for real estate and now it's back to somewhat normal here in Pittsburgh . So can you tell me what's a lesson you've learned in navigating that over the years ?

Speaker 2 5:04

Yeah , I sell high , buy low , like we actually are pretty good those that are in real estate of when it's a hot market and when it's , you know , a seller's market . When it's a buyer's market , it's not , as you know , obviously as volatile as is like the stock market or even cryptocurrency or Bitcoin . It is very , very consistent . Ok , for the most part , it's like a big Titanic ship that takes a larger time to turn . In fact , the 2008 crash most people forget this or they don't even know it took three years for the real estate market hit bottom three years .

Speaker 2 5:33

That's a big , big shift , ok . And then from about 2012 on it just kept rising and rising and rising and rising , essentially until 2022 . Then it's still kind of flatlined a little bit here , maybe declined if people got in too much debt . So I would just say , like , trust your instincts of when it's a good time to sell and don't let the tax tail stop you from selling and taking those gains right when it makes sense for you . That's part of where we come . Gains right when it makes sense for you , that's part of where we come in right . We help you to sell high , buy low , all tax deferred , so you don't ever have to suffer the consequences of not capturing value when it makes sense . So that's number one . Number two make sure you're buying on intrinsic value , like you would have bought the deal anyways , like you can force the appreciation . You can add the value by improving the property , or you're by outside forces , of hoping that interest rates stay low or hoping that you know rents increase .

Speaker 1 6:18

The hope is not a strategy like go do the thing Like I can actually improve the property .

Speaker 2 6:22

Now that probably means you bought it a good basis , right ? You had a good basis to begin with and there is something to improve physically or aesthetically , or retending or something about it where you could add value by doing the work . Okay , so those two things you can control . When you can do that , you pretty much and you don't overpay for a property , you pretty much can't lose in real estate . I would say you know , I mean it really is you know , multifamily , mobile home , park , industrial , especially those are our favorite ones . And the last one I would say is don't feel like you have to do it yourself .

Speaker 2 6:51

Like people can do a lot of things . You can buy , you can brokerage real estate , you can syndicate real estate , you can raise capital , you could operate , you could manage . You do a lot of different things like figure out , like what is it that's going to serve you , for you and your family and your time and energy . Now , personally , what I do is I'm full focused on capital gains , tax solutions , our company , and then I passively invest into real estate . You know I'll raise capital , I'll get on the GP side , right , I'll be an LP for a lot of deals . Like I'm not day to day actively anymore building real estate , brokering real estate . I'm not right Like , because my family and I five kids under the ages of 14 and under like I just don't have the time to do that with my company .

Speaker 2 7:28

So that's the other part of , I would say , is just make sure that it's aligning with your lifestyle goals and not just , oh , I want to go buy real estate because I need to be well so , and not just , oh , I want to go buy real estate because I need to build wealth , so I got to go buy all this real estate . Well , okay , but how much time and energy is it going to take up ? What if you were to raise the capital ? What if you were to find the deal ? What if you were to structure it in a way that you could still get that ownership appreciation , cashflow and depreciation ? But you're not having to .

Speaker 1 7:55

So the purpose of Shine On Success is to show everyone , whether entrepreneurial or not , that we have adversity and we push through to the other side and we just keep getting back up over and over again . So have you had any adversity in your life ?

Speaker 2 8:06

Oh , yeah , I'll tell you . In fact , I say I start on the other side of things . When I was at Marcus Mellichap , it was 2006 and things were going great for a little while . In fact , it was a very hot market . I was just getting out of college and I was looking for that success . I had played basketball and scholarship and had academic scholarship . I had two degrees and a minor . I'd always been successful in school and sports and I was excited to launch my career .

Speaker 2 8:27

And things were going well for a while until the 2008 crash hit and I went from making a little bit like nothing overnight and I don't know if you were there or if you remember that time , but we had brokers in our office that were making 250 a year , $500 , a million a year , making zero . And all of a sudden I found myself , you know , questioning like , oh my gosh , I'm like I'm failing Right . And growing up , my parents were divorced at the age of about eight years old and so all of a sudden , they were really wealthy in the Bay area and then , like , mom had no wealth because dad didn't pay child support . So all of a sudden , like these fears and these like anxiety crept up on me . So I'm newly married , baby on the way , and I'm like , what are we going to do ? And so I did what every good entrepreneur or a real estate wannabe does you get a side hustle . My side hustle was Cheesecake Factory .

Speaker 1 9:06

That's so good .

Speaker 2 9:08

Yeah , egg rolls on the side , and I did that for two years . So I walk in for the interview and the guy's like , hey , what are you doing here ? Like you're , you have all these degrees , you're this big , big real estate company . I'm like , look , I'm not making any money , I got a baby . And like I don't want to quit the day job . So by day let me work at Marcus and Millichap and by night let me work at Cheesecake Factory . He's like , okay , if you give me two years , no matter what . I said okay for two years , no matter what , no matter if you , we're the same type , Marcus and Melch . I think .

Speaker 2 9:34

All the cold calls to talk with the banks , because at this time my clients were going through their own financial struggles and so I was making like zero and so we moved my brother to a small condo . We'd get these side hustle jobs , working nights and weekends at Cheesecake Factory . And by day I make the cold calls and negotiate with the banks to help my clients hold on to their assets , right , because they're losing like everything . I saw clients lose everything , and this is where this journey kind of kind of turns while you're in this period of like you know , uh , let's just say the desert financially . It helps you to clarify your vision , your mission , your

Learning and Growth in Business

Speaker 2 10:08

values .

Speaker 2 10:08

Like what are you made of ? Like you really actually have a chance to live and practice that grit Right and like like cause I had , I had . I mean I was , although my mom had no money real growing up , we still had enough right , god still provided . We had coaches , we had youth pastors , we had people pour into us , we were in a great great schools Like we had . We still had so much right . We still had so much Go to my dad's house and he had like a lot of stuff but we only almost hung out with him a little bit with with the time , with the parents being divorced a couple hours away real job what ?

Speaker 2 10:28

are you doing ? You have all this talent and these degrees , I'm like . But I love real estate Like . I love what I'm learning and growing so much . I had a good saying like in your 20s , you want to learn like , you work to learn Right . In your 30s , you work to earn Right . But like your 20s , be really humble about that . I'm driving a car . That was you know .

Speaker 2 11:08

It was out of his last leg , so I cut the bare bones . We live with my brother in a small condo and did that for two years . And then I learned about this thing called a deferred sales trust . Now , when I learned about that , it gave me the edge to start to sell and get in front of people with real estate and fast forward . I was able to retire from the Cheesecake Factory . Now this is all we do full time , like we're national with this company and we're agents across the country , investors across the country , business owners across the country to how to do this and so . But it didn't start out that way . It started out flat on my back , humble , humble beginnings financially and having to grow over that two year period .

Speaker 1 11:38

I beginnings financially and having to grow over that two year period . I love that story . It's so good . It's exactly what the purpose of this is , so do you have your own podcast I do .

Speaker 2 11:43

Yeah , we have to build it to billions podcast so you can give it all away . And then we have capital gains tax solutions podcast and both YouTube channels on there . We also have this expert CRE secrets as well . That's kind of the sister podcast of the two older brothers , or older sisters , if you will . So we actually have three , but I would say the main one right now is build it to billions podcast and capital gains tax solutions podcast .

Speaker 1 12:02

So , from the podcast , what is one piece of advice or insight from a guest that has stuck with you and changed the way you approach your business ?

Speaker 2 12:08

So I've had over 300 guests at this point and I would say there's probably 100 of them that are just the most incredible . Another hundred that are amazing , another hundred that are , that are good , right . So gosh , I would even take a step back . I would just say , like , if you haven't started a podcast , like start a podcast , like honestly , like , because , I get to learn from just amazing people .

Speaker 2 12:28

They come on my show , like I'd say , the podcast is the . Is the new coffee or the old coffee , right ? Like people are not going to sit down with you for an hour for coffee , generally speaking , ok . If they're your friend or relative , yes , and if you have , like this big deal that you're working on with the client , ok . But time is just like completely like squeezed right now . So , however , can I get to Kevin Harrington from Shark Tank on my podcast to speak about his new book ? I could drop in what I do and all of a sudden he comes and he's a part of my book , right ? Because ?

Speaker 1 12:55

of the podcast . Yes , now could I cold call Kevin .

Speaker 2 12:58

Harrington . What are the odds of him sitting down with me here ? Like , next to zero , like , but does he come on the podcast ? Now he's in my book and then now he's . You know , he's starting to like , look at our services and maybe I'm not part of his dream team . Like , like . It's just honestly like , so incredible . So I would just say what I've learned is that you can actually sit down and have a real , genuine conversation . That's value add , because you're putting them on stage with your people as well . You're asking great questions .

Speaker 2 13:21

What I learned is actually how to listen . Okay , so I'm a pretty fast talker . I'm the extrovert . My wife's the introvert . She's taught me a lot how to listen . But what the podcast did was it really stretched the muscle to listen , okay , and what I mean by that is I would have sometimes five and six podcasts back to back , to back to back to back to back , and I'm like , in a sense , you're forced to listen because you're here to try to pull out the best secrets , and so you have the format and then you're writing things down , and what I found it was I would go to like live events or conferences and people say you listen so well . I'm like can you say that ?

Speaker 2 13:52

Because I want my wife to hear that Right Like like we say that , but I realized it was like , oh my gosh , like I am strengthening that listening muscle right and leadership is influencing . The only way to have influence is to be able to listen and understand where someone else is coming from right . So , really , what I learned , it's not so much like some golden nugget , all those tons of those it's really that it helped me to grow as a listener , which helps me to grow as a leader . Okay , and that to me is is the single best thing I've learned from the podcast .

Speaker 1 14:20

For me it's the networking , like you said it's . I'm networking with people all over the world and I'd be able to never met you Right If it wasn't for this . And now I get to meet you and learn what you do , and then I can share , you know , my story with other people . I love this and you're like , you're making me smile , like inside , because I you're the perfect guest for what we're doing , thank you I see you have a book , so that's amazing .

Speaker 1 14:41

So , as an entrepreneur and an author , how do you stay ahead in such a competitive market , especially when it comes to wealth management ?

Speaker 2 14:47

so the core values have got to be lived out , believed , prayed about , planned . And it starts with , like the calling . Like I have a good , I have a good uh mentor , and now his name is Don Winter and we're connected with Tim Tebow and he talks about the calling . It's gotta be both . You know , a calling it's got , it's gotta be , it's divine and it's also urgent . Okay , and it's combining these two things . Like a lot of people like , hey , this is my purpose , this is my calling , or this is what I'm . You know , I'm born to do , born to be here , but are they making it urgent ? Like , most people have the will to win , but there's a , there's very few that have the will to prepare , to win , to be intentional , to plan .

Speaker 2 15:23

I've been with John Maxwell four times in the past six months at leadership events . John Maxwell , one of the top leaders in the world , sold over like 30 million books and he talks about like the ability to grow as a leader is in direct proportion to how intentional you are about your leadership and your personal development , right ? He says the one thing that we can control , right , is our leadership and the one thing that guarantees we're going to grow tomorrow is if we invest in our leadership and growth today . And he , these are just things that you can absorb and hear , and but you're around it and you see it and you feel it and you sense it . And so Don Winters brought this to life with living his calling , with urgency , right and purpose .

Speaker 2 15:59

And , like it's so true , you get in the room with these people and I've been in a room with Tim Tebow multiple times now John Maxwell , don Winters , and you're the average of the five people you're spending the most time with , right , like so what are you feeding your mind ? What are you feeding your heart , right ? What are you praying about ? No-transcript , I'm quite answering the question , or fully it helps keep it competitive .

Speaker 2 16:27

Right , you're competitive because you're on your game , okay , so then you just become , you know , you just can't help but grow . Like I played basketball and football girl , I'm doing jujitsu now , right now , like I'm the new jujitsu guy Right , and I walk into the white belt and there's black belts and there's blue belts and purple belts and I'm the new guy and I'm with them and I'm with them tomorrow morning at 5 30 AM . I'll be with them and I'll be , you know , rolling and practicing . I can't help but grow .

Speaker 2 16:49

I'm the newbie guy . Right Now , when I go play basketball , I'm the , I'm the , I played scholarship on school , so in college and stuff , so I'm like you know more of the expert guy , but and the other , and I'm helping other people grow who are below me , right , and I'm having fun . But when I'm the newbie , like I , I would say that's how I stay competitive because I am growing and as I grow , when the leadership gets better , everything gets better . So I show up amazing for my clients because I'm growing with other amazing leaders . Okay , I can't help but be more competitive because I'm focusing on my growth versus focusing on the external stuff . Like , oh , what are my competitors doing ? What are they doing ? Like , no , no , no , no . My race is right here , right now . Right , I'm urgent , I'm focused and I'm around others that are running even a faster race and I get to lean in , I get to absorb , I get to become a part of that . Does that make ?

Speaker 1 17:40

sense Makes total

Exit Planning for High Net Worth

Speaker 1 17:41

sense . So what's the most common mistake you see high net worth individuals make when planning for the future , and how can they avoid it ?

Speaker 2 17:47

Yeah , so high net worth individuals have massive capital gains taxes on these highly appreciated assets . In fact , there's 84 to 100 trillion dollars that's going to pass from the baby boomers to millennials in the next 20 years , and this is known as the largest wealth transfer in the history of the planet . Ok , and most of them have what I call blockbuster exit planning . They have the , they have the CPA , the real estate agent and the tax person who just doesn't have the competitive edge for the Netflix way to exit . And so they sit in these assets that are locked up the capital and they're not maximizing their freedom or their impact with the capital . And I call it sleepy capital . Right , where their ROE is , a return on equity is three to 5% , right , it's not great .

Speaker 2 18:23

In fact , we had a client give you a live case study a $2.5 million apartment complex I actually represented them before I moved out of California sold their asset for a record price , but their NOI was 120,000 , right , $120,000 . Well , I said , look , we can increase your NOI 120 to about 190,000 . We can eliminate the toilet's trash liability and give you ability to live life however you want to live it right now . Right , and like , wow , you can no more . No more toilet's trash liability . I don't have to worry about the fires and the insurance and the California rent control and all this stuff for your rent control and all this stuff . So like that's really really , really important , right , it's really important to have something that's going to give you that unique edge to be able to provide that value to the client , and when you do that , that's going to help you to get more transactions , to grow more deals , to serve people at a higher level . So that's what I would say to that question .

Speaker 1 19:07

So you said something about the Netflix way to exit . What does that mean ? I ?

Speaker 2 19:10

mean the high net worth individual needs to be able to have a team members higher than who don't be the how . If they already have their problem solved , they wouldn't be coming to you , right ? You got to realize , as the expert , and what you're offering , or get your skill set to the point where you can offer something that gives you freedom and flexibility of timing of debt . Freedom of flexibility . So the blockbuster 1031 is the best example . You have 45 days to identify , 180 days to close . You have to buy like-kind investment real estate . You have to sell high and typically buy higher 180 days later . Right , the 1031 exchange doesn't make a lot of sense . You have to stay in equal or greater debt , and that's where people got in trouble in the 2008 crash and they're getting trouble right now is because they overpay for properties and most of the time they know they're doing it . They know they're overpaying but go , I don't want to pay all the tax , so I'm just going to go ahead and just keep going , right . And then , all of a sudden , the market shifts like , oh my gosh , I wish I would have just paid the tax . And they get stuck in between these two high things or they just don't even sell . They're like oh , I don't even want to sell it because I don't want to pay the tax and they didn't take advantage of the higher market have been checked out . You have to return it within three days . You got to rewind the video . The DVD is scratched or blah , blah , blah , blah , blah . It's just an old , clunky way of doing it . That's the blockbuster .

Speaker 2 20:17

Well , netflix , or the deferred sales trust that we offer is it gives you the ability to sell high by low . You can any asset of any kind . So we've done it with Bitcoin , public stock , private stock , business sales , real estate . The blockbuster 1031 only works for investment real estate . Ours works for primary homes , luxury primary homes . Okay , so think about that . We've done it with an $8 million deal . One of our clients is that , with the number one agent at Keller Williams for 20 years , top in the world , sells over a hundred million dollars a year in Palo Alto . He did it for his own house . He goes Brett .

Speaker 2 20:44

Every single real estate agent it's luxury should know about this . How do they not all know about this ? Right , I'm like you didn't meet us yet . You haven't got even delve into it . You're stuck in the 1031 companies that are just telling you that's the only way to do it . So , understanding that you can sell high , buy low , you can invest into any asset at any time , there's no timing restriction , you don't have to go into debt , you can be passive , you can be active , you can be an entrepreneur , you can be retired , you can you free ebook , and it'll break down these freedoms that you can have . And the blockbuster 1031 gives you a couple of freedoms . It gives you capital gains tax deferral . That's just one of them , but it doesn't give you income tax deferral . It doesn't give you a state tax freedom . It doesn't give you partnership freedom or debt freedom , and so that's why it's Netflix , because it has way more freedoms than the old blockbuster method .

Speaker 1 21:25

That makes sense . So you wrote a book . Yeah , so a couple of ways A hired , a publisher , shout out to Seth Green marketing domination .

Speaker 2 21:42

He and his team are incredible and they helped me to publish the book . We actually did a podcast style book , which means I interviewed some of the top guests . So there's Kevin Herrington from Shark Tank , there's Dawn Winter , there's Tyler McBroom , who's the CPA for Tony Robbins in the book , there's Kevin Bupp top five podcasts in the country for mobile home parks and real estate . Buck Joffrey all these people , david Green , or sorry , david Young , neil Bawa I interview them and then I ask them for their permission to convert their interview into a book , to a chapter of a book . Right , I also wrote some original content , so I've got about like four or five chapters of original content , but in other words , I'm not creating an entire book from scratch , all myself .

Speaker 2 22:15

This is like 300 , some pages this is and , by the way , I want to do it as a team , like I don't know if I have that much knowledge , yet . And they were on the podcast , and so we make that into a readable format , right . And then we everyone comes into the book and then I weave in the theme of building a capital gains tax exit plan . So those are all the pieces that helps to streamline and speed up the book .

Speaker 1 22:37

It's a great idea and I actually have the same idea for my own self to build this into a book and I think it's . There's so many incredible stories that I'm finding out . So last question I would think is important so in your career you've helped clients across various industries . What's the most surprising challenge with your clients that you've encountered and how did you overcome it ?

Speaker 2 22:58

I think there's , you know , with real estate , with everything that you're doing , there had to be something that was super challenging . Yeah , the one , that's the biggest surprise that I would say . There's two . Let me I

Wealth Preservation Strategies and Personal Life"

Speaker 2 23:04

give them to you , okay . Number one is saving a failed 1031 exchange . Okay , so most people don't know that with our strategy , we can save a failing 1031 . So you can go for your own 1031 and go for it If it fails . We save it . Okay , and that's really huge because it gives you kind of two things . Number one it gives you leverage to negotiate with the seller .

Speaker 2 23:20

The worst thing to be is a buyer in a 1031 and the seller knows it , and it's like they have all the leverage . It's like you're playing poker and you're showing all your cards Hi , I'm in a 1031 and I've got to buy your property . Would you please let me buy it for the highest price and no terms . That's kind of what it feels like , right . Instead , you go hey , hi , no , I've got a deferred sales trust . I've got the best 1031 exit plan . I've got Brett and his team with me behind me . If this thing doesn't work out , I don't need can build it . So just knowing that , even just having that , and so we just released the best 1031 exit plan . We work with a top qualified intermediary and you work with us to have the backup plan and it's a 1997 offer to , so it's just low below $2,000 , but it gives you all of that leverage . So that's number one . You can save a failed 1031 and you can do a partial 1031 . We've had clients do half a 1031 and half a deferred sales trust , so it's not a one size fits all . You can do a little bit of both , right and just depending on what you're trying to solve .

Speaker 2 24:16

Number two is estate tax . So we can eliminate estate tax . I was on with his stocks because his plan is just to die and pass it to his kids , so he never sells . I'm like , okay , I get that , so you want to pass as much as you can to your kids ? Yeah , okay . Well , what are you gonna do about the death tax ? Okay , and this guy's been in Wall Street for 20 , 30 years . He's really smart . Okay , and I go , you know , because death tax is 40% above 14 million married , 7 million single , and has nothing to do with capital gains tax . Same thing with the 1031 . Everyone says 1031 is the best because you can swap until you drop .

Speaker 2 24:47

And then you get a stepped up basis and high fives and we're tax free . No , only tax free for capital gains tax , not for the debt tax , separate tax . So don't get caught with a 40% debt tax . So what is it ? Okay , so let's say you had a net worth of 114 million . I know that's a lot and maybe you're saying I don't have that , but , okay , I got it . But just to keep the math really simple , and you're married , well , $14 million is exempt . The other $100 million is subject to a 40% debt tax , unless you sell that stock , that Bitcoin , that business , that real estate prior to you dying and move it outside of your taxable estate .

Speaker 2 25:19

Now , when you do that , we eliminate that 40% debt tax . So this is how we do it . We use something called a defer Sales Trust Plus and it's incredible . Okay , there's no charity , life insurance or gifting required , although we love charity and we want you to be able to give to charity , but not everyone's 100% charitable . Okay , so without any charity , life insurance , gifting required , we can eliminate the debt tax in one sale , in one day , by using the DST Plus . Now , you got to sell it to the $100 million buyer over there , but we get it outside the taxable estate To me . That just blew my mind that most people just don't know about this . They don't know how to do it , but we figured it out is this is not something new . It's close to 30 year track record , thousands of transactions , close to 30 , no change , irs audits , all perfectly legal track record and it works . But you've got to be willing to learn and set this up prior to the close of escrow .

Speaker 1 26:02

Makes sense . So I heard all about your business , your leadership . Now tell me a little bit about you . Have five kids . What do you do for fun ?

Speaker 2 26:09

Yeah , so jujitsu , all kids do all jujitsu and so do I , so dad and we're trying to get mom to go too eventually . So we do jujitsu , do that like at least twice a week , sometimes three times a week . We travel a ton so our goal is to do a thousand days , a clean water wells in Uganda , coming up in March with the whole family . We were just in Atlanta , we were just in North Carolina , we were just in New York for the entire week . We'll be in South Miami at a so I do like a work conference , like a little couple of days , and then we'll hang out for like a couple of days or a week . So this is the journey . We'll go to Montana , we'll uh , in Utah . We're going to be traveling all over the U ? S to create memories , to educate the kids , to just explore and have an adventure together . So that's what we do . We really just travel

Family Activities and Capital Gains Planning

Speaker 2 26:54

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Speaker 2 26:54

The kids do some soccer and stuff , and then , um , we have church on Sundays and , uh , we go swimming , we do pickleball and we do , oh , we ride one wheels . That's pretty cool . So I got the one wheels . You like skate on these things . So we had three of them . We gave one away to like a charitable thing , but then we have two more going and so just movement . You got to try to wear the kids out so they go to sleep on time .

Speaker 1 27:14

That makes a lot of sense . So how can our listeners find you ?

Speaker 2 27:17

Yeah , so a couple of ways . You can go to brettswartzcom . It has links to all of my social media it Tax Solutions , links to the podcast , links to the YouTube channel . That's probably the easiest way , brettssportscom . And then you can pick up the book too on Amazon Building a Capital Gains Tax Exit Plan . And , for all of the listeners here as well , you can get the free download of our ebook by going to capitalgainstaxsolutionscom , and it gives you nine steps to exiting your highly appreciated asset tax deferred . That's totally free .

Speaker 1 27:44

Just click the button and put your email , I think , in there , and then it'll send it to you awesome , and so if our listeners could like , subscribe and share this episode , that would be great , because , you know , if we help just one person on every podcast , this podcast is a success . So thank you so much , brett . It's been a pleasure . I've smiled the entire time . You're an amazing human being . I'm very lucky that I don .