How We Work Together With Real Estate Agents
As a Real Estate Professional, you undoubtedly know about 1031 Tax-Deferred Exchanges, right?
One simply purchases a "Replacement Property" with the proceeds of the "Relinquished Property," and Voila!, the capital gains taxes will be deferred until the investor sells the Replacement Property at some point in the future.
Well, the IRS has made it clear that the "Replacement Property" must be "like kind" in order to qualify for the tax deferral; apartment building, shopping center, single family home, etc.
But not everyone wants to be a landlord forever.
So, is there a better way?
One type of "like kind" replacement that the IRS has approved is known as a Delaware Statutory Trust, or DST.
What is a DST? In the simplest sense, it is a "mutual fund" of real estate properties, professionally managed by any of a number of reputable firms throughout the country, and which may pay the investor an annual yield. This leaves the management of the property, along with the hassles of being a landlord, in someone else's hands, yet still allows the investor to defer the capital gains from the sale of his or her investment property.
Often, the purchase of a DST is as simple as opening an account with an Investment Banking firm licensed to offer such DSTs for 1031 Exchanges.
As with anything else in the financial world, the details must be carefully reviewed and only licensed professionals can offer securities products, including DSTs. We can help by introducing you to such professionals in order to determine whether or not your clients can benefit from such a product.
Please click below for our free booklet on DSTs, and feel free to reach out to us with any questions at (775) 7-RETIRE or (775) 773-8473.
