How the DST is a Game Changer with Jake Mellor

Jake Mellor is a coach of coaches. He is a financial planner, but he is also much more. He has instructed CPA Firm owners from across the country on how to help their clients implement higher-level Tax Advantaged Wealth Management Strategies.
Jake is passionate about advising successful business owners how to identify and implement strategies that some have felt were only reserved for the ELITE.

Table of Contents

Episode Highlights Here:

Jake

Now you don’t have to have any 45 day window 180 day window, you don’t have to sell in a high market and then buy in a high market, you can actually sell when it’s the right time to sell, not put off the sell because you’re afraid of paying taxes, you’re able to receive those proceeds into the trust, and then utilize the trust to reinvest those assets in a number of different asset classes without being penalized.

Brett

What’s the number one secret to understanding why the deferred sales trust is a game changer,

Jake

It’s important to understand that when you’re about to experience, perhaps the largest transaction of your life or one of the largest transactions, that perhaps you need to level up and get some advice that you don’t receive every single day. Again, you don’t have this transaction every day. One of the most important things that makes this a game changer is that the deferred sales trust allows you to reinvest with the gross proceeds of the transaction, minus minimal attorney fees, rather than subtracting out big chunks of your piece of pie to pay taxes, right? So you are allowed to defer the recognition of the transaction that normally you’d have to incur this year and pay taxes on, you’re allowed to defer that forward and reinvest, continue to grow your assets, continue to grow your investment, continue to grow your wealth. Yeah,

Brett

so that’s fantastic. And if you’re curious about that, up to 100% of your capital gains tax can be deferred on stock businesses, cryptocurrency primary homes, investment, and real estate can save a 1031 exchange. And what’s unique about that is not only can you sell but the second game changer. I’m curious, Jake, once the funds are there, what makes the DST a game changer as it pertains to options.

Joe

Once the funds are there, you’re allowed to then diversify your asset class. A lot of the times when it’s the largest transaction of your life or, you know, a substantial transaction, it’s time to re-allocate amongst other asset classes. It might be your personal residence, it might be your business, if it’s your business for a lot of entrepreneurs, which we speak to a lot of entrepreneurs, their nest egg, their retirement, all of their the bulk majority of other assets have been locked up in their business all their life or their working career. And now it’s time to splay it out. Right? sell that business and invest in real estate and invest in other assets. You can’t really do that in a very easy way with a lot of other tax strategies.

Brett

Tie timing aspect of that, right. And like when you would do that, and how flexible the DST provides a game changing way to deal with it at different times, especially given the times we’re in right now with uncertainty in real estate in the stock market and banking. What’s the DST allow you to do as far as timing

Joe

when it comes to large cells that would normally incur capital gains? Brett, that deferred sales trust starts to become a little bit of this Keystone like in an arch the Keystone strategy, we’re all other strategies kind of spin this pivot off of it, and dance your question, you’re able to be in control now of the timing. And that’s why it becomes the Keystone strategy because everything else starts to revolve around it. Now you don’t have to have any 45 day window 180 day window, you don’t have to sell in a high market and then buy in a high market, you can actually sell when it’s the right time to sell, not put off the sell because you’re afraid of paying taxes, you’re able to receive those proceeds into the trust and then utilize the trust to reinvest those assets in a number of different asset classes without being penalized by by typical and standard are well known tax strategies that are out there that are still applicable has been at a at an appropriate level. Rather than trying to make a square peg fit in a round hole and all in one, you can actually utilize the other tax strategies at an appropriate level. And now because you have the control and power over the timing of when you reinvest, you can find a deal that’s a good deal rather than being forced into a deal because of time restrictions.

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About Andrew Spaventa

Jake is passionate about advising successful business owners how to identify and implement strategies that some have felt were only reserved for the ELITE. He has an uncanny ability to internalize advanced financial concepts and quickly recognize when they should be utilized in a practical setting. Unlike his fellow CERTIFIED FINANCIAL PLANNER™ professionals, Jake has advanced practical experience with an extensive business management and accounting background. With an MBA and a Master’s degree of Accounting, Jake understands how impactful mitigating taxes now and in the future can have on a client’s overall net worth and current asset accumulation.

Over the years, Jake has acquired an arsenal of strategies that can be deployed from a fiduciary perspective to improve your and your client’s financial standing. Jake is unparalleled in his extensive knowledge and real world experience in a myriad of financial sectors such as Tax, Accounting, Insurance, and Business Management, which makes it hard to find his equal on all these levels.

Jake was successful in serving four years as a County Commissioner with the goal of making significant changes for his community which were achieved. Jake is a Military Veteran and served our great nation in Iraq during OEF/OIF during 2007-08.

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