SPECIAL DST UPDATE
IRS Delays Opportunity Zone and 1031 Exchange Deadlines Amid COVID-19 Pandemic
WHAT IS A 1031 EXCHANGE?
A 1031 Like-Kind Exchange allows an investor or business owner to sell an investment property and replace it with another property (passive or active ownership) of equal or greater value within a timeframe of 180 days from the date of close using a qualified intermediary. If all the criteria are met the investor can defer taxes on up to 100% of capital gains created from the sale of the original property. Some form of 1031 Like-Kind exchanges has been around since 1921.
WHAT IS A DELAWARE STATUTORY TRUST?
A Delaware Statutory Trust (DST) is a separate legal entity formed as a trust under Delaware law. If properly structured, the DST will be classified as a grantor trust for federal income tax purposes and, as a result, the purchaser of a beneficial interest in the trust will acquire an undivided interest in the asset(s) held by the DST. DSTs may qualify for 1031 exchanges.
STEPS TOWARDS COMPLETING EXCHANGE
The way towards a successful exchange is incorporating and understanding a couple of basic strides to complete your 1031 exchange:
Select a broker to help with your purchases and sales.
Contact an experienced Qualified Intermediary (we can make a referral).
Guarantee the Facilitator can ensure the security of your assets.
Demand day in and day out logistics into your 1031 trade coordinations.
Start searching for Replacement Property as ahead of schedule as could be allowed.
Interested in getting more involved with the DST/1031 Exchange process?
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