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"The Capital Gains Tax Deferral Secret That Will Change Your Wealth... And Change Your Life!"
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Deferred Sales Trusts are not a recent invention. In fact, they are over 24+ years old (the IRS Section tax code known as IRC 453 predates from 1920's and is known as a, "seller carry back" or "owner financing." ) The simple principles of the deferred sales trust are from this original IRC 453 tax code and are the foundation we still use today. In fact, with the 14 successful IRS audits conducted and completed for the thousands of deferred sales trusts closed it’s important to understand where we come from, so you can feel secure for where you will stand if you move forward. I guarantee this video lesson will help you gaining clarity for your tax deferral strategy.
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Learn how the deferred sales trust can help you escape the pressure of a 1031 exchange!
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This message is for educational purposes and is solely intended to provide an overview on how the Deferred Sales Trust works and can be implemented. CGTS does not provide legal, tax professional services, or advice. Each transaction and individual circumstances vary widely and participants are strongly urged to seek independent legal, tax and professional advice.
Transcription
Welcome to the Capital Gains Tax Solutions, your shot of clarity to break out of capital gains tax jail, when selling a highly appreciated asset. I'm Brett Swarts, your exclusive Deferred Sales Trust trustee.
WHY NOT USE A DEFERRED SALES TRUST?
The answer is you're too late, meaning the deal has already closed and now the tax is triggered or the deal is in escrow and all contingencies have been removed. Let's walk through a couple scenarios, so you really understand what's going on here.
If you sold highly appreciated stock, a business, real estate, and you've received the cash, by nature of how tax is triggered, you're going to have to pay that tax.
However, if an advance you had set up a Deferred Sales Trust and you had properly structured it with the Deferred Sales Trust tax attorneys and with capital gains tax solutions, you can have the proceeds into the trust. Therefore it's in a tax deferral state.
Let's say you're selling a home, and a buyer has removed all contingencies and it's set to close tomorrow. It's too late. But if they had even one contingency remaining and you had even 48 hours or 72, we can set up the Deferred Sales Trust and actually have this thing work.
Now, it'd be a real stress cause it's a lot of pressure with the timing. Generally we like to be 7-14, at least 30 days in advance. The earlier the better for everybody.
If it is an investment real estate property you can also have that sent to a 1031 exchange company and that buys you another 45 days. You use the deferred sales trust up to day 181 so we can say failed 1030 exchange.
We just did a recent deal in Georgia for a gentleman who was past his 45 day identification period and used the deferred sales trust to save his failed 1031 exchange.
He was selling a highly appreciated apartment complex, 128 units and 7.6 million. We had about 1.1 million of liability of tax, if he didn't complete his exchange. Due to the prices were so high, he decided to use the Deferred Sales Trust, instead of doing the 1031 exchange.
And you can learn more about that at capitalgainstaxsolutions.com. As always, we believe most high net worth individuals and those who help them struggle with clarifying their capital gains tax deferral options. Not having a clear plan is the enemy, but having a proven tax referral strategy such as the Deferred Sales Trust is the best way for you to grow your wealth.
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