In this educational video, 1031 Capital Solutions explains the basics of Delaware Statutory Trusts that qualify for 1031 exchanges (1031 DSTs)
Yes, there is a little bit more to do after you complete a 1031 exchange. With a little knowledge and a good tax professional, you should have no problem getting everything buttoned up.
Conducting a like-kind exchange of rental property is about more than saving a few bucks on your tax bill. For most taxpayers, the combined state and federal tax benefits can add up to several hundreds of thousands of dollars over multiple transactions.
Completing a 1031 exchange transaction does not need to be complicated. But you cannot hope to comply with the rules if you don't take the time to learn them.
A perfect 1031 exchange has no "boot", meaning no taxable consequences. Alas, few things in this world are perfect, and exchanges are no exception. But if you follow the rules, you can keep your boot small.
Can you exchange a personal vacation property that you also rent to tenants? Of course you can. Is it easy to trip over IRS rules? Of course it is
Episode 6 from Real Estate Taxation Series. Losses from one category of investments may not be available to offset gains or income from another category. In real estate, it is important to know whether your investment generates "active", "passive" or "portfolio" income.
Episode 4 from Real Estate Taxation Series. Outside the sale of real estate (or in the event of a failed 1031 exchange), a QOZ fund may be a suitable way to defer taxes while investing in neighborhoods that need to attract investment capital for redevelopment or new construction.