A DST, a legally recognized trust set up for business purposes, can help property owners work around title holding issues in 1031 exchanges. That’s because the IRS considers DSTs as disregarded entities. What exactly is a disregarded entity? It’s a business that isn’t recognized as an entity separate from its owner for tax purposes. A… Continue reading The DST Solution for Title Holding Issues
It’s a real estate investors’ dream—a property that highly appreciates in value over time. The downside to that dream, though, is the prospective hefty capital gains tax bill which can either trap that wealth in the property, or force the investor to pay a heavy price to the IRS upon the sale of the property.… Continue reading Capital Gains Tax Deferral Through 1031 Exchanges
The state of Delaware has a strong history of innovation in protecting the personal wealth of both residents and non-residents through both its corporate laws, and its trust statutes. The state’s work in trust law has helped investors maximize their investment return while protecting it from creditors and saving income tax. In addition, because the… Continue reading DST for Small Equity Investors
Closing on a property in under 30 days may appear like a daunting task, making the time limit enforced by the IRS in a 1031 exchange seem like an hourglass that’s running out of sand. Using a Fractional Ownership DST (Delaware Statutory Trust) structure enables investors to easily close a 1031 exchange upleg, or replacement, property acquisition… Continue reading Closing on a Upleg Property in 30 Days or Less
Investors considering placing their equity in a Delaware Statutory Trust should consider all the benefits. Contractual Freedom In most DSTs, the parties define their business relationship to best suit their own needs. Investors do not have to unanimously agree The signatory trustee holds the power to take any necessary actions to reduce loss. The trustee… Continue reading Why Purchase an Interest in a DST?
TIP #1: MAKE SURE YOUR FUNDS ARE SAFE You may take this fact for granted. You shouldn’t. The 1031 exchange industry is largely unregulated. In addition, when your 1031 funds are on deposit with a facilitator or intermediary, those funds legally belong to them. This leaves you open to risk if something bad happens to… Continue reading Three Important Tips for 1031 Exchanges
There are a variety of benefits to 1031 exchanges, which allow investors to sell or relinquish property and acquire replacement property and gain significant tax advantages. 1031 EXCHANGES DEFER CAPITAL GAINS TAXES Clearly, the primary benefit of a 1031 exchange is the ability to avoid hefty capital gains taxes on the sale of a business use… Continue reading Benefits of 1031 Exchanges
If you’re an investor looking to grow your portfolio, 1031 exchanges are something you should know about. What is a 1031 Exchange? Defined by the IRS Simply, 1031 is a tax code that allows an investor to defer capital gains taxes by reinvesting the proceeds of one business or investment asset into another. Through 1031 exchanges,… Continue reading What Is a 1031 Exchange?