Meeting 1031 Debt-Replacement Requirements Using DST Financing
A 1031 exchange is a promising strategy that helps investors defer capital gains taxes while acquiring new property, but this transaction involves many rules. One important yet often overlooked aspect of the transaction is debt replacement, as it doesn’t always apply. However, for properties that do have debt, failing to replace it when acquiring a new asset can result in tax liability. Thankfully, solutions are available, including financing built for Delaware Statutory Trusts (DSTs).
How Zero-Coupon DST Loans Affect Basis, Cash Flow, and Exit
Delaware Statutory Trusts (DSTs) are a popular option for investors seeking passive income, enhanced diversification, and access to institutional-grade assets. Among the many considerations to keep in mind before entering one is the financing structure. Amortized financing is the most common, but some DSTs also use a zero-coupon loan structure.
Coordinating Your Qualified Intermediary and DST Sponsor: Paperwork, Escrows, and Assignments
In a 1031 exchange completed through a Delaware Statutory Trust (DST), two entities matter: the qualified intermediary and the DST sponsor. Seamless coordination must happen between the two to ensure compliance with IRS rules and increase the chances of a successful exchange. There are various key areas where these parties will need to work together. Let’s take a look at what you need to know as an investor.
DST 1031 Exchange Timeline: From Sale Proceeds to Subscription Docs
You can enter a Delaware Statutory Trust (DST) through a 1031 exchange, helping you access passive cash flow and income from institutional-grade assets, all while enjoying deferred capital gains taxes. However, like with traditional 1031 exchanges, you’re still subject to the 180-day timeframe imposed by the IRS.
How 45-Day Identification Works With Fractional DST Interests
Entering a Delaware Statutory Trust (DST) creates opportunities for passive income, heightened diversification, and more. However, you must follow certain rules when investing, especially if you’re using the DST to finish a 1031 exchange.
How to Successfully Do a 1031 Exchange With a Mixed-Use Property
Embarking on a 1031 Exchange with a mixed-use property can be an astute move for savvy investors looking to defer capital gains taxes. This complex process allows you to reinvest in new properties while maintaining the value of your investment capital. However, mixed-use properties present additional challenges that require careful navigation to ensure compliance with IRS regulations.
