Part 3: One Thing To Focus On For Your Bitcoin Deferred Sales Trust Transaction


The number one thing to focus on for your Bitcoin Deferred Trust Transaction Part 3, we’re talking about all things, execute your DST plan and close the transaction. I’m Brett Swarts, founder of Capital Gains Tax Solutions, where we help you escape feeling trapped by Capital Gains Tax when selling your highly appreciated Cryptocurrency, Business, Real Estate, save uphill 1031 Exchange so you can create and preserve more wealth. Start your next business, invest in the next real estate deal, or just live passively on a cash flow asset such as the Deferred Sales Trust. I’m excited to dive into this series, our Third Part of our series by the way, if you haven’t seen our first two videos, I want you to go back right now and start at square one, which was Strategy and Motivation for selling your Bitcoin and it’s all about making sure you have clarity on why it is that you’re wanting to sell your cryptocurrency, your Bitcoin, your Ethereum, your whatever coin that you have. what does that enable you to do if you can get some diversification, some liquidity, and some time to invest in some other investments. That’s all about number one, Part 1. Part 2 a video is all about the DST team like who am I, Brett Swarts, right in my role as the trustee, the DST tax attorney, as well as the financial advisor, and also working alongside your team. Make sure you dive into that to really make sure you understand each of the key players in the transaction. Then Part 3 is right now Executing The DST Plan and Close the Transaction.

Now, this is all about all the planning, we’ve done all the preparation, we want to execute that and really the first step to be able to execute that is opening up an Exchange Account with the Deferred Sales Trust that has just also just been opened up. The key here is the Deferred Sales Trust is unique, it gets a unique EIN, and then we can go directly into an Exchange Account, like a Kraken and we can open up a new account and in that name with that EIN. From there, it’s all about this the Timing and Exit. Hopefully, in Part 1 of your strategy motivation, you’ve also set an exit price or target price to equate to a certain dollar volume or dollar amount. An example had a couple of clients close on one was Ethereum and one was Bitcoin one was a little bit of both, but they each had an exact clear focus of a number that they wanted to achieve dollar-wise for what the coin was worth, and so the coin had to get to a certain number for one of them in Ethereum 3000 was a number, for the Bitcoin client 54,000 was the number. Then they sold just a portion of that, but that enabled them to get the number they were looking for. We want to set those target prices, and we want to make sure that it’s all properly done online, with the exchange accounts. Then once that’s done, then it’s all just about Transferring Instead of Selling. I want you to think transfer not sell, transfer not sell. If you have, let’s say some Ethereum some Bitcoin, and you want to you don’t want to sell to USD, that would be taxable. But if you transfer it to the trust, it’s in a Tax Deferral State, this is the whole thing with it with the Deferred Sales Trust, I remember you becoming the lender, it transferred to this new entity in exchange for a promise of the entity to pay you back over time. It is known as a Seller Carry-Back.

You can learn more about that in a few of my other videos in the DST Made Simple Series as well. It’s going to be a transfer and it’s going to be in real-time. Typically, it’s going to sit on a screen share with myself, and on my team, we’re watching and we’re setting up where we’re making sure that first everything’s connected properly, and we’re sending small amounts, just to make sure everything is flowing correctly, and the security is all intact. Then second, we’re sending larger amounts, and then we once they’re there, into the Kraken account, and for example, or Coinbase or Binance, it could be a number of places. At that point, then the funds are now in the Exchange account, they’re going to sell to USD and that’s where the trust will then move it to a bank account. That’s kind of the execution of the plan. But we’re all working together as a team to achieve that. By the way, you might have a deal where the coins are not listed. In that scenario, you might need to form an LLC and transfer to the LLC and we’ll work with you on that process as well. It’s a little few extra steps. But that’s something that we would work through with you. By the way, all of this is no cost no obligation until you actually close the deal. So until the coin actually transfers and the deal closes. You haven’t paid anything to us for the video step 1, video step 2, and all the strategy and all the planning, it’s not until you actually sell and because, for some of our Crypto Clients, they’re the values are higher than the batteries are low, and their target price is not there. So we want to take all that pressure off for you to know that. When we go to execute this plan, you’re not having to prepay for the planning, you only paid for the delivery of the asset being transferred, and they and the equity being deferred. That is just a little let you know, to kind of keep you at ease there on what is all this stuff costs, which some people really, you should know about, but a lot of people don’t realize it’s nothing prepaid. It’s only paid at closing.

That’s it. The exit and we transfer to the bank, and then we’re closed and at that point as well, you’ll have a promissory note. To pay you back over time, the amount plus a rate of return typically 8%, can be 6 can be five could be 7, depending on your risk tolerance, and we’d work with the financial advisor to establish that and then all the investments need to have your approval, and you work with me, the trustee to execute on the business plan. This is all about step 4, which is how and where can the funds be invested, which is in the next video. That’s where we’re talking about that, and kind of the ongoing maintenance of the trust? What does it look like? So look for that video to come here shortly as well. If this helped you at all, would you please rate review subscribe, would you please share it with somebody who might be selling some highly appreciated Bitcoin, Ethereum other coins other cryptocurrencies and they’re looking for a way to defer tax. Remember, one 1 million net proceeds and a $1 million gain is our minimum unless you have to have more assets that are equal that we can help you out.

Go to If you want to take action right now and schedule your one on one consultation with myself or one of my team members, and to learn more about the Deferred Sales Trust. So download our Free eBook. I also want to invite you personally to our Masterminds and Deferred Sales Trust Mastermind that happens every Friday at 10 am Pacific Standard Time, 1 pm Eastern Time. Where we have clients on we have CPAs, Financial Advisors, we have folks just like yourself are learning about the Deferred Sales Trust for the first time and are asking it’s kind of Deferred Sales Trust University asking questions, and we’re all together for about 30 minutes once a week covering typically the deal close story of the week covering frequently asked questions and then helping you make all things simple with trading your cryptocurrency and deferring the Capital Gains Tax. So again, it’s every Friday at 10 am Pacific Standard Time, 1 pm Eastern time. You can Register Right Now by going to, it’s Appreciate you watching this video. Please Rate, Review, and Subscribe if you’re listening to this on our Podcast. Thank you also for listening on Spotify and iTunes. Please also share this with somebody that can help out. Thanks, everybody.




Closed Deal Story


Selling Bitcoin, Ethereum Capital Gains Tax-Deferred Using the Deferred Sales Trust


I believe that is where we’re at with cryptocurrency’s current marketplace. We closed the first Bitcoin and Ethereum case for $5 million and helped the client defer around $1.5M in capital gains tax. Now we’re getting a wave of individuals who are finding us. You might be finding us right now.

One of the biggest challenges with folks who are selling cryptocurrency is they want to be able to diversify, they want to be able to time the real estate market and or even the crypto market, they want to be able to have some liquidity, some cash flow, and so part of this vision is taking helping our clients who are in cryptocurrency, buy an investment, real estate, all tax-deferred, using the Deferred Sales Trust, also invest with Jake Mellor as the financial advisor to in a diversified investment grade security or start a business. Whatever the outcome that you want to do. Why is it that you’re investing with any type of asset? What if you could sell high, diversify, and buy back in whenever you’d like to? This is what we’ve already done and we’re doing, we’ve already proven it.

Read The Full Case Study Here



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