Selling a business or property? Up to 50% of your gain could go to taxes. Here's how one owner grew cash flow from $120K to $190K instead.

What if swapping one rental for a bigger one isn't the path to freedom at all?

Misty Bacon sits down with Brett Swarts, founder of Capital Gains Tax Solutions and author of Building a Capital Gain Tax Exit Plan, who helps founders and investors defer tax with a deferred sales trust.

Learn how to plan a capital gains tax exit before you sell, how a deferred sales trust compares to a 1031 exchange, how to build truly passive income, and how leaders avoid drifting off course.

🎧 Hosted by: Misty Bacon

🎤 Featuring:

Brett Swarts is founder of Capital Gains Tax Solutions, an eXp Commercial multifamily broker, and author of the Amazon best-seller Building a Capital Gain Tax Exit Plan. Raised building custom homes in the Bay Area, he later ran multifamily sales and 1031s at Marcus & Millichap. He hosts the Capital Gains Tax Solutions and Build It to Billions podcasts.

💡 What You’ll Learn in This Episode:

✔️ Capital gains tax can take 20–50% of the gain on a large sale

✔️ Exit planning applies to businesses, Bitcoin, IPO stock, and real estate

✔️Deferred sales trusts defer tax with no cash taken at closing

✔️Repeated 1031 exchanges often trade 15 problems for 30 new ones

✔️Truly passive income is to freedom what compound interest is to money

✔️ Leadership failure usually happens slowly, not all of a sudden

✔️Consistency over intensity turns good habits into second nature

💡Key Questions Answered

Q: Who is a good fit for a deferred sales trust?

→ A: Business owners, founders, and investment property owners with multimillion-dollar gains, says Brett Swarts, founder of Capital Gains Tax Solutions. Primary homes fit only at $3M+, with $1–2M in gain and no replacement home.

Q: How can I stop managing a rental property but keep the income?

→ A: In Brett Swarts' client example, Warren sold his 15-unit property, deferred the tax, paid off debt, and diversified into passive investments, raising cash flow from $120K to $190K and freeing his time. Investments still carry risk.

Q: What's the difference between a deferred sales trust and a 1031 exchange?

→ A: Per Brett Swarts, a 1031 exchange swaps one property for another, while a deferred sales trust makes proceeds diversified and liquid, in stocks or back in real estate. He calls it the Netflix to the old Blockbuster 1031.

⏳ Timestamps:

📌00:00 - Capital Gains Tax: 20–50% of Your Gain at Stake

📌00:31 - Meet Brett Swarts: Custom Homes to Marcus & Millichap

📌02:16 - Tax Planning: 10,000 vs. 5 Hours

📌03:23 - Who Qualifies for a Deferred Sales Trust?

📌04:32 - $10M Sale: Become the Bank (IRC 453)

📌05:59 - Selling With a Loan: Debt Over Basis & 1031s

📌08:30 - Broke in 2008 to Passive Income

📌09:54 - 15 Units, 15 Problems: $120K to $190K

📌12:19 - Seller Financing: When Buyers Default

📌13:57 - Why Only 1 in 3 Leaders Finish Well

📌15:22 - Awareness, Isolation & Pace

📌17:45 - Consistency Over Intensity & Mentors

📌20:00 - Cold Calls: Add Value or Waste Time

📌23:46 - Legacy & Serving the Most Vulnerable

📌26:16 - The $124 Trillion Wealth Transfer

Connect with Brett Swarts:

🌐 Facebook → Company: https://www.facebook.com/capitalgainstaxsolutions

💼 LinkedIn → https://www.linkedin.com/in/brett-swarts

💼 LinkedIn → Company: https://www.linkedin.com/in/brett-swarts

📸 Instagram → Company: https://www.instagram.com/reel/Ci3t976AIXR/

🎧 Follow Misty Bacon:

🌐 Website → https://www.thebaconrealtygroup.com/

👻 Facebook → https://www.facebook.com/thebaconrealtygroup

💼 LinkedIn → https://www.linkedin.com/in/mistybacon/

⭐ Produced by Icons of Real Estate - https://iconsofrealestate.com/

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