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.
You can't un-ring a bell or put water back into a hose-but you can buy your replacement before you sell your relinquished property. Let us show you the most common method for completing a "reverse" exchange.
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.
This episode is for investors seeking to retire from being landlords. If you are interested in conducting a 1031 exchange-but do not want to operate another rental property-a passive replacement program could be a suitable solution.
It is becoming increasingly common for passive 1031 investors to pursue a "one and done" strategy and ultimately own units of a REIT. If you would like to avoid the need for multiple 1031 exchange transactions, please watch this video.
"DST" stands for Delaware Statutory Trust-a bona fide 1031-qualified investment structure approved by the IRS in 2004. A Deferred Sales Trust™ is something else. Let us clear things up in this episode.
Because investor situations and objectives vary this information is not intended to indicate suitability or a recommendation for any individual investor.
This is for informational purposes only, does not constitute individual investment advice, and should not be relied upon as tax or legal advice. Please consult the appropriate professional regarding your individual circumstance.
There are material risks associated with investing in DST properties and real estate securities including liquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal.
DST 1031 properties are only available to accredited investors (typically defined as having a $1 million net worth excluding primary residence or $200,000 income individually/$300,000 jointly of the last two years; or have an active Series 7, Series 82, or Series 65). Individuals holding a Series 66 do not fall under this definition) and accredited entities only. If you are unsure if you are an accredited investor and/or an accredited entity, please verify with your CPA and Attorney.
Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services offered through Concorde Asset Management, LLC (CAM), an SEC registered investment adviser. Insurance products offered through Concorde Insurance Agency, Inc. (CIA). 1031 Capital Solutions is independent of CIS, CAM and CIA. To access Concorde’s Form Customer Relationship Summary (CRS), please click here.
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