Are you considering a 1031 exchange? If you are a savvy real estate investor and thinking of selling your investment property, chances are 1031 exchange must have crossed your mind. Factually speaking, this 100-year tool involves selling your relinquished property and investing the entire proceeds in a like-kind investment property to defer the taxes on …
There are particular requirements for acquiring and identifying potential like-kind replacement properties in your 1031 exchange transaction. Replacement properties that you are considering to purchase in your 1031 exchange should be identified to your accommodator or Qualified Intermediary and must be identified not later than midnight of the 45th calendar day following the closing of …
It is not very rare to argue that the more you invest, the more you make. So if you could defer paying taxes and use that money to increase your next investment amount, wouldn’t you do it? Of course, you would at least look into it. Let us answer some questions about 1031 Exchanges– DSTs …
A Delaware Statutory Trust (DST) is a real estate trust formed solely for business purposes. DSTs are private governing trusts responsible for buying, managing, administering, and selling real estate properties. DST shares can be purchased as 1031 replacement properties. DSTs have large structures, and a single DST can possess a hundred or more investors. You …
Lately, the investors are actively looking to invest in 1031 Delaware Statutory Trust (DST) Properties. If we go by the facts, the Delaware Statutory Trust (DST) investments have increased to a great extent in the past 1.5 years. Why wouldn’t they? When the investors choose to go with Delaware Statutory Trust (DST) investments, not only …
Why Investors Prefer To Defer Taxes Using 1031 DST Properties? Read More »
Think of DSTs as TIC investments. What do you know about TICs? A TIC or Tenancy-In-Common arrangement lets multiple investors own, operate, and share investment properties. Most commercial complexes are owned under TIC ownership. Under a TIC arrangement, investors have an ‘undivided fractional interest’ in the property, which empowers them to dispose of the property …
Under Tenancy-in-common or TIC arrangement, you are allowed to co-own an investment property with one or more investors. A TIC investment is a great tool for small or medium-sized investors looking to purchase large investment properties without investing huge capital. A TIC structure usually has up to 35 investors. Investors often mistake a TIC investment …
TIC Investment And Property Identification In 1031 Exchanges Read More »
Most investors lose a significant part of their monthly income in paying operating expenses. When you invest in real estate, in most cases, you are burdened with landlord responsibilities. Keeping track of property bills, paying operating expenses like utilities, property tax, insurance, etc., take away a large portion of your time and money. As a …
Investments With Little-to-No Landlord Responsibilities Read More »
If you remember correctly, a 1031 exchange is a swapping of investment properties where you are not liable to pay any capital gains taxes. Officially known as Section 1031 of IRC, this unique investment strategy is one of the best ways to increase your investment post selling an old property. However, as nothing comes easily, …
What Happens When You Mix A Dst Investment With 1031 Exchange? Read More »
