Why Every Business Owner Should Know About the Deferred Sales Trust
Most entrepreneurs dream of a big exit. But many are shocked by the tax bill that comes with it. In this episode of Business Owners Tell All: What It Takes, we explore how the deferred sales trust for business owners can completely change the exit strategy — helping founders keep more of their money, increase passive income, and build a legacy.
Our guest, Brett Swarts, founder of Capital Gains Tax Solutions, shares how he helps clients legally defer capital gains tax using a strategy most business owners haven’t heard of — the Deferred Sales Trust (DST).
🧠 What Is a Deferred Sales Trust and Why Should Business Owners Care?
The deferred sales trust is a legal, IRS-approved tax strategy that allows business owners, real estate investors, and crypto holders to defer capital gains taxes when selling a major asset.
Instead of paying a huge tax bill upfront, you transfer the asset to a trust, which then sells it and pays you back over time. You only pay taxes as the trust pays you — not all at once.
💬 “Most owners don’t realize how much more freedom they can gain by deferring taxes with the DST.” – Brett Swarts
🔄 From Broker to Builder: Brett Swarts’ Entrepreneurial Pivot
In 2008, Brett watched the real estate market crash — and his commissions with it. He went from a promising real estate broker to working nights at Cheesecake Factory and refereeing basketball tournaments, hustling to support his growing family.
But that struggle gave him clarity. He saw how poor tax planning could destroy families, and he became obsessed with finding a better solution.
🔑 Key Benefits of the Deferred Sales Trust for Business Owners
✅ Lower Taxes, More Cash Flow
The DST can help defer up to 30–50% of taxes upon the sale of a business or investment.
✅ Truly Passive Income
By reinvesting the funds wisely, many clients increase their monthly income without lifting a finger.
✅ Flexibility & Diversification
Unlike a 1031 exchange, you can invest in real estate, stocks, or even Bitcoin — all without triggering tax.
📈 A Real Story: From 15 Rental Units to 2 Twin Daughters
Brett shared a powerful client story: Warren and Catherine were ready to sell a multifamily property but faced $1M in taxes. They didn’t want more properties. They wanted time with their 10-year-old twin daughters.
By using the deferred sales trust, they:
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Increased income from $120K to $190K/year
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Eliminated property headaches
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Started traveling as a family
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Began teaching their daughters how to steward wealth
💬 “We define truly passive income as: no shoes, no shirt, no problem.” – Brett Swarts
🧭 Rewriting ROI and Building Your Legacy
Brett encourages business owners to measure ROT: Return on Time, not just Return on Investment. Once passive income is secured, the focus can shift to ROI: Return on Impact.
His family goal?
➡️ 1,000 extraordinary days in 100 unique locations before the kids turn 18.
💬 “We’ve created mission, vision, and values for our family — just like our business.”
💬 Top Questions to Ask Before Selling Your Business
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How much tax will I owe if I sell today?
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Can I defer the gain to increase passive income?
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What is my “freedom number” for truly passive income?
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Does my current financial advisor know about the Deferred Sales Trust?
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What matters most to my family post-exit?
🧩 Build Your Dream Exit Plan
If you’re a business owner or investor looking at a major exit, Brett suggests spending at least 5 hours creating a custom plan. The results?
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Up to 50% more wealth preserved
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Time back with your family
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Alignment with your personal and spiritual purpose
💬 “Diluted focus leads to diluted results. Get clear, get passive income, then go make your impact.”
🙏 What It Takes, According to Brett Swarts
“It takes a little — and it takes a lot.
A little faith that God’s given you a gift.
And a lot of clarity about how to use it.”
🔗 Resources Mentioned:
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Book: Building a Capital Gains Tax Exit Plan
📲 Listen + Subscribe
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