1031 EXCHANGE OPPORTUNITY
Simplify your real estate holdings without losing to taxes
Families and businesses with non-residence properties often are faced with a dilemma--face the complications and hassle of managing the asset for return or sell it and face a significant tax. Your family farm, ranch, acreage, or other rental property can be exchanged for a higher quality, passively managed property and potentially increase your rental income.
A 1031 Exchange (from Internal Revenue Code 1031) allows an investor to sell an investment property and exchange it for a new property while deferring capital gains. There are specific requirements to follow in such an exchange, including the use of a Qualified Intermediary, or "QI", to facilitate the transaction such that sales proceeds never go to the seller.
1031 Exchanges exchange like for like. However, property holders who face management headaches or poor cash flow from their properties don't want to exchange one problem for another. Is there another way?
The Delaware Statutory Trust Solution
A Delaware Statutory Trust, or DST, is a growing 1031 option. A DST offers an investor fractional ownership in a Triple Net Leased property, multi-family property, office property, warehouses, and more. The property is a passive investment which can be part of a diversified portfolio.
Typically, there is a minimum $100,000 in each property. The investor receives a passive ownership in an income-producing property without the hassle and problems associated with managing their property and without triggering capital gains tax.
For the right situation, a DST can be a powerful tool to turn property which is a drag on their portfolio and planning into productive parts of their financial plan.
To discuss this option, you need not have a property under contract. Contact us to get started >>
DST Products Offer
Institutional-Grade Real Estate
Low Minimums & Diversification
Deferred Capital Gains
The information contained on this page does not constitute legal advice or tax advice. Legal advice, including tax advice, must always be tailored to your circumstances, and nothing on this page should be viewed as a substitute for the advice of a competent attorney and tax advisor.
Risks of an investment in a DST 1031 exchange include: Tax laws are subject to change which may have a negative impact on a DST investment. These investments are not suitable for all investors. Potential Drawbacks of DST Ownership: A DST investment is an investment in real estate; any investment in real estate is subject to market value and rental income fluctuations, tenant issues, vacancies, taxes and governmental regulations. There are costs and fees associated with a DST investment and management and the tax benefits must be weighed against the investment costs. A DST owner does not maintain management control or dictate day-to-day property management operations. DST ownership is also subject to additional IRS regulations that affect the management of the property and your ownership interest. Investors should investigate and thoroughly understand these issues prior to investing in a DST offering. DST investments are highly speculative and involve substantial risks. No public market is likely to exist for such investments, they are not freely transferable and substantial restrictions may apply to the transfer of interests.