CGTS Living Your Best Life:
Southern California Home Owner Says a ‘Deferred Sales Trust’ Unlocked a Clear Path to Sell My Home
June 28th, 2021 by Brett Swarts founder of Capital Gains Tax Solutions, LLC
Marcia, an owner of a primary residence and a retired environmental health inspector out of Southern California saw that the changing world presented the need for new cash flow and mobility to move into a lower-cost state in order to build on, ‘living her best life’ in retirement. Not only that, but she also wanted to fund her son’s business venture in the emerging post-pandemic business and economic environment. To accomplish this, she and her son chose to work with Brett Swarts of Capital Gains Tax Solutions in May 2021.
“My son saw Brett on Youtube talking about real estate, deferring capital gains tax on a primary home and living off of the cash flow using a Deferred Sales Trust,” she said. “We were excited to work with a company that will help provide the tax deferral tool to enable my retirement years to flourish by increasing my monthly cash flow while deferring capital gains tax so I can remain focused on what matters most, living in Georgia, spending time with my family, investing into real estate, and starting a new business venture with my son. I wanted to be able to give back and start a new journey, however, I felt partially stuck in my primary home since I bought it in 1998 for $238,000 and the capital gains tax, if I sold, would be a huge amount of my net worth as the gain was over $900,000”
Marcia was focused on helping inspect commercial and residential properties for Atlanta, Georgia, and Los Angeles County for nearly 30 years and served her community with selfless integrity and a contagious zest for life. She was focused on helping others stay protected from potential structural dangerous and unhealthy property conditions. “Inspectors serve our communities and help keep families safe. I loved knowing what I did had a direct impact on families’ health and safety,” Marcia said. Personally, for her finances she focused on staying out of debt and has amassed a pension retirement income of around $4,500 per month, however, with the Deferred Sales Trust transaction, her income has the chance to more than double. The DST helped her escape feeling trapped by capital gains tax jail and will help her, ‘live more of her best life’ for decades to come.
Deal Highlights, Stats & Life Transformation:
- Original purchase price of $238,000 + 121 exclusion of $250,000 made the basis $488,000
- $928,299 gain
- 33% capital gains tax rate – state of CA and Federal = $306,338 approximate tax liability
- Desire to move out of California, retire on a higher income, invest into real estate and help son start a business
- Deferred Sales Trust helped her defer $306,338 and provides a transformational amount of equity to invest and live off the cash flow
- Chance to double retirement income
Sorting out capital gains tax deferral strategies can be confusing. Also, finding a proven track record tax deferral strategy that gives you debt freedom, liquidity, diversification, and the ability to move funds outside of your taxable estate all while not using a 1031 exchange at the same time, is hard to find. That’s why we’ve started Capital Gains Tax Solutions and offer The Deferred Sales Trust™ (“DST”). So you or your clients never have to feel trapped by capital gains tax or a 1031 exchange ever again when selling any type of asset including cryptocurrency, primary home, investment real estate or a business. Get clarity today on the differences between each tax deferral strategy you are considering, including the Delaware Statutory Trust, Charitable Remainder Trust, 1031 exchange, Opportunity Zones and learn more about The Deferred Sales Trust™ (“DST”) today by downloading a free e-book, Sell Your Business Or Real Estate Smarter here at http://www.capitalgainstaxsolutions.com. Here is a video with Kevin Harrington from Shark Tank discussing the selling of stock and using the Deferred Sales Trust. Read about more Advantages of The Deferred Sales Trust™ (“DST”) in a recent article here.
About Brett Swarts:
Brett Swarts is considered one of the most well-rounded Capital Gains Tax Deferral Experts and informative speakers. His audiences are challenged to create and develop a tax-deferred transformational exit wealth plan using The Deferred Sales Trust™ (“DST”) so they can create and preserve more wealth. Brett is the Founder of Capital Gains Tax Solutions and host of the Capital Gains Tax Solutions podcast. Each year, he equips hundreds of high-net-worth business professionals with the DST tool to help their high net worth clients solve capital gains tax deferral limitations.
