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1031 (DST)

What is a 1031 Exchange?

Under Section 1031 of the United States Internal Revenue Code (26 U.S.C. § 1031), a taxpayer may defer recognition of capital gains and related federal income tax liability on the exchange of certain types of property.  This provides an effective strategy for business owners and real estate investors who understand both the benefits and process of this type of transaction.

What is a DST?

A Delaware Statutory Trust (DST) is a business trust created under Delaware law. A DST can be used in a wide variety of business settings and in our context creates a trust, which qualifies under Section 1031 as a tax-deferred exchange. In 2004, the IRS blessed DSTs with an official Revenue Ruling about how to structure a DST that will qualify as replacement property for 1031 Exchanges.

Who is this right for?

BUSINESS OWNERS AND REAL ESTATE INVESTORS MAY CONSIDER A 1031 DST IF...

1. Need to Avoid Taxable Gains

2. Need a Back Up Property

3. Need to Avoid Financing Obstacles

4. Don't Want Property Management Headaches

5. Want Diversification Benefits

6. Need An Estate Planning Vehicle

7. Seeking High Quality Properties and Leverage Options

8. Desire Low Minimums

9. Alleviates Inactivity

10. Swap Till You Drop!


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