Internal Revenue Service tax code 1031 relates to real estate exchanges, allowing investors to defer capital gain tax payments on the sale of the property by reinvesting the proceeds into another business or investment. It is one of the most underutilized sections of the tax code, even though it offers many benefits to investors who… Continue reading What I Learned About 1031 Exchanges That Can Help You, Too
Do you have remainder equity from a real estate exchange? Are you looking to maximize its potential while saving yourself a hefty tax bill? A Delaware Statutory Trust can be the perfect vehicle for meeting your investment needs. Why DST? It’s a business entity, through Delaware state law, that allows investors to take a fractional… Continue reading Delaware State Trusts for Remainder Equity
How Safe Is My Investment? You’re aware of all the benefits of using a Delaware Statutory Trust as an investment vehicle for a 1031 exchange. You’re thrilled at the capital gains tax savings the investment will give you, and relieved that your property management responsibilities will be limited—a professional manager will deal with tenants and… Continue reading DST Q & A
One of the most important decisions you’ll make as a commercial real estate investor is determining how to structure your borrowing. Commercial real estate investors usually have two types of loan financing options: recourse debt and non-recourse debt.
Cash-on-cash return is a key part of evaluating commercial real estate investments. But is it enough? Most investments, such as stocks, are assessed by return on investment, or ROI, but because you can’t know how much a rental property will bring you in total before you sell it, using an ROI to evaluate a commercial… Continue reading Evaluating Investments Through Cash-on-Cash Return
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?