Feeling Pressured To Make Quick 1031 Exchange Decisions? A DST Could Be Right for You | Reef Point LLC

Feeling Pressured To Make Quick 1031 Exchange Decisions? A DST Could Be Right for You

If you’re thinking about doing a 1031 exchange of investment real estate or a business, or have already started the process, you know that the stringent time frames required by a 1031 exchange can be challenging at best and impossible to meet at worst. You have only 45 days from the sale of your property to identify “like kind” property to buy. You have only 180 days from the sale of your property to close on the purchase of the “like kind” property.

The Risks and Disadvantages of a 1031 Exchange – And How the DST Can Eliminate Them | Reef Point

The Risks and Disadvantages of a 1031 Exchange – And How the DST Can Eliminate Them

If you have invested in real estate in the past, you likely have also done a 1031 exchange. As you undoubtedly learned, however, 1031s have numerous risks and disadvantages. While they defer your capital gains tax liability when you sell a piece of appreciated real estate, the rules and regulations that apply to them can make them unappealing at best and downright dangerous at worst. Why? Because they often fail, leaving you with an enormous capital gains tax to pay.

Use a Deferred Sales Trust to Work Around 1031 Exchange Limitations | Reef Point, LLC

Use a Deferred Sales Trust to Work Around 1031 Exchange Limitations

An IRS 1031 exchange is a fantastic tool for an investor to transfer a real estate asset into another without recognizing a taxable capital gain. However, there are limitations of its use and strict rules governing its use: like-kind limitations, time windows and asset type restrictions. If you wish to diversify your real estate asset into other investments or if your asset is not real property to begin with, then you need a 1031 exchange alternative like a Deferred Sales Trust.

1031 Exchanges Threatened as Commercial Lenders Halt Loan Applications – Deferred Sales Trusts the Solution

The New York Real Estate News reported that the marketplace where lenders sell mortgages on office buildings, rental properties and other types of commercial real estate has ground to a halt as traders try to figure out how to price in risk amid the COVID-19 pandemic. Possible Impact to Real Estate 1031 Exchanges We are …

Read more1031 Exchanges Threatened as Commercial Lenders Halt Loan Applications – Deferred Sales Trusts the Solution

Bifurcated Exchanges into a 1031 Exchange and a Deferred Sales Trust

Bifurcated Exchanges into a 1031 Exchange and a Deferred Sales Trust with the possible use of a Delaware Statutory Trust for the 1031 Exchange Upside Replacement Property The usual 1031 jargon is “up in value, up in loans”.   In a bifurcated 1031 exchange you are doing 2 transactions-  (1) a 1031 exchange and (2) a …

Read moreBifurcated Exchanges into a 1031 Exchange and a Deferred Sales Trust