Why Everyone Is Not Doing the Deferred Sales Trust With David Young


“It’s the two edges of the sword that come with wanting to protect something” – David Young



It seems like it’s too good to be true, David. My CPA would have heard about this. Why hasn’t someone else told me about it? Why isn’t everyone doing it? I don’t know if you’ve heard that yet, I hear about it every day, but what would be your response to that.


It’s usually got an element of sort of like distrust or so holds on now wait a minute. It’s the two edges of the sword that come with wanting to protect something in order to protect something, anything. A great business idea, intellectual property with a patent, a transaction type which in this case, has certain legal and other protections, so that no one importantly can take the really good idea and go basically duplicate it, that’s important. But more importantly, take a good idea and mess it up. In a strange way, when you are protecting anything. It also places some limitations on its broad use. Not everybody can see it or access it. It’s not perfectly transparent or out floating around on the internet, we expect everything to be googleable. Well, this isn’t googleable, at least not in terms of the detail, because there’s no way to do that, and make it that broadly available without protecting it to make sure it stays, it’s done. We have this conversation about the asset portfolio. Where the nature of it is a bit the investments must perform within a range, and the range is fairly generous, and there’s some flexibility. But the point is, all of the parts, the legal structure, the tax elements, and the investment. And so I have to work together in harmony, and they all have to perform. If any one of them breaks, then we have a problem. It’s my reputation, and it’s your reputation. It’s Bob Binkele’s reputation. These are serious folks. I think of myself as a fairly serious person to my entire life developing my credibility and my reputation. I’m not about to throw it away. In a strange way, the activity of protecting that, that sanctity results in the fact that it isn’t as widely known as you otherwise think it might be. That’s actually a good thing.


It is actually a good thing, and it’s why it’s been 25 years now plus 1000,s of closes billions under management. Over a dozen no change Successful IRS Audits. Because it’s just an installment sale. Now, we’re created with a third party, unrelated trustee, which is what the services we provide here at Capital Gains Tax Solutions are. But it takes a team of professionals to execute this in a way that maintains the law of IRC 453. That’s important to mention, by the way, we also think and believe and would hope to think that the just the same fact that you can diversify the wealth, the IRS also says that could think and would believe that you’re going to diversify the taxes being paid. Because this is truly deferral, this isn’t avoidance. What we’re seeing is we’re actually locking in the gain, versus the 1031 exchange where it’s, as it stands right now, it’s kind of you can drop into your swap or swap into your drop. In 2008, when things were not diversified, and if you’re trading one single asset for another single asset and taking out a bunch of debt. Guess what? Things can stop, and all of a sudden, that gang gets wiped out, and guess who else who doesn’t get the tax on that, the IRS. Whereas in the Deferred Sales Trust, we’re taking that gain and we’re kind of locking it in, and we’re preserving it. We’re gonna spread it across potentially a hundred different investments and a hundred different companies from different countries, different areas. It can be real estate, it can be stocks. It can be hard money lending, it can be a number of things, and therefore it increases the chances of when you receive payment, you’ll pay tax. Also, by the way, he gets new property taxes because the property sells, the agent gets the listing he has to be taxed on the commission. It’s actually a win, win win.




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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