1031 DST Exchanges
A 1031 exchange is a tax-advantaged investment strategy that allows investors to defer capital gains taxes by reinvesting the proceeds from a property sale into “like-kind” real estate assets. By enhancing purchasing power, 1031 exchanges may enable investors to acquire higher-value properties, improve cash flow for more efficient wealth growth, and transfer assets to heirs with a stepped-up basis that helps minimize tax liabilities.
- 1031 Exchanges
- Delaware Statutory Trusts (DSTs)
1031 Exchanges
From diversification to potential capital appreciation, leveraging a 1031 exchange transaction may provide several valuable benefits.
Gives investors the opportunity to reinvest in property types that may offer greater appreciation, portfolio diversification and potential income.
To maximize tax benefits of a 1031 exchange and avoid penalties, it's essential to meet all guidelines and deadlines of a 1031 exchange transaction.
Delaware Statutory Trusts (DSTs)
DSTs are considered the partial ownership structure of choice for many real estate investors, specifically for those interested in executing a 1031 exchange.
With a DST, heirs can receive ongoing distributions paid from original investment, and upon sale of property(ies) in DST, decide how to handle their inherited portion.
An investment strategy that allows investors to enjoy the benefits of owning a real estate property without all the hassles.
Key Benefits of 1031 Exchange
By using the proceeds of a property sale to purchase “like-kind” real estate, an investor can potentially reinvest in property types that may provide:
Income
Appreciation
Hedge
Diversification
Ownership
Advantages
Potential DST Advantages
This passive investment structure, in which multiple investors may hold fractional interests in a single property or portfolio of properties, is attractive to many 1031 exchange investors for its ability to enhance portfolio diversification while qualifying for tax-deferred exchange benefits.
Institutional-Quality Properties*
Policy
Liability
Industry-Leading Asset Management
DSTs typically offer professional property and asset management teams that handle day-to-day operations and decision-making for the property or properties. With the implementation of active asset management, experts monitor market conditions, trends, and company-specific news. This active approach, from acquisition to disposition, improves property value and increases potential returns for investors.
