Our newest guide, Tax-deferred Strategies for Real Estate, provides a comprehensive overview of the 1031 Exchange and DST investment strategy. If you have not yet downloaded your guide, do so now and learn more about: The origin of the 100-year-old 1031 Exchange The wide range of replacement properties you could own Basic rules and requirements
A Delaware Statutory Trust (DST) is a legal entity that allows you to co-invest with other investors in one or multiple real estate investment properties. A DST 1031 Exchange is when an investor completes a 1031 Exchange by purchasing DST interests as their replacement property. There are many potential benefits to doing so. Potential Benefits
Let the math do the talking in this illustration of the financial advantages of a 1031 Exchange. In the past we have introduced readers to the concept of a 1031 Exchange, highlighting the process of an exchange and several critical timelines to follow. We now want to help illustrate the power of tax deferral when
A 1031 Exchange is a powerful way to defer Capital Gains when selling a real estate investment. This process can generally be broken down into three steps: Step 1 Once you have determined you want to use a 1031 Exchange to sell your investment property, you need to ensure the proceeds from your sale are
It has been called one of the greatest wealth-building strategies ever devised. Section 1031 of the Internal Revenue Service Code allows investment property owners to sell real property, reinvest the proceeds in "like-kind" exchange property, and defer capital gains tax. What is a 1031 Exchange? The IRS has allowed tax-deferred exchanges for over one hundred
After a tsunami of a year facilitating 1031 Exchange transactions, we found there are many misconceptions among investors about 1031 Exchanges. Here are five of the most common areas of investor confusion: Reverse Exchanges Are Quick & Simple: Identifying replacement property in a hot market was a challenge for 1031 Exchangers this past year,
Partners in an LLC selling real property may be bracing to receive the sale proceeds and pay capital gains tax. But what happens when the partners disagree on the exit strategy and one or two partners want to continue deferring taxes? Fortunately, there is a strategy known as "Drop and Swap" where partners can
