A 1031 exchange allows you to sell an investment property and reinvest the proceeds into another like kind property allowing you to defer capital gains tax.
45 Day Rule:
Once the sale of the property occurs the qualified intermediary will receive the cash from the sale. You then have 45 calendar days to identify an equal or greater value replacement property or else you pay taxes.
180 Day Rule:
You must close on your replacement property within 180 calendar days of the sale of your old property.
The 3 Property Rule:
Allows for identification of any 3 properties, that’s combined to be equal or greater in value from the property sold.
The 200% Rule:
Allows for the identification of more than 3 properties, as long as the combined value does not exceed 200% of the property value sold.
A Delaware statutory trust is a separate legal entity created as a trust under Delaware law in which each owner has a beneficial interest for federal income tax purposes and is treated as owning an undivided fractional interest in the property. In 2004, the IRS released revenue ruling 2004 – 86, which allows the use of a DST to acquire real estate where the beneficial interest in the trust will be treated as direct interest in the replacement property for purposes of conducting 1031 exchanges.
Build generational wealth by continuing to reinvest and defer taxes until you pass away.
Upon death, heirs will receive a step up in cost basis eliminating taxes.
A DST creates an intentional estate planning road map, which enables investors to pass down generational real estate wealth to their families upon their passing.
The ultimate Retirement/Exit strategy for tired landlords. (Tired of Tenants, Toilets, & Trash?)
Left Over Equity