How to Locate 1031 Exchange DST Properties In No Time

by Angilina Taylor 1031 Exchange Expert, Tax Consultant

Investors often have to deal with the rising maintenance cost on their properties along with the passage of time. As a property grows old, it requires maintenance on a regular basis, which indirectly requires more money and time. In order to deal with the ever-rising maintenance cost, investors often look to sell out their properties and reinvest the proceeds in some other kind of properties or assets. In the process, they also need to pay the taxes imposed by the State as well as the Federal government on the capital gains. However, on account of doing a 1031 exchange, an investor can defer up to 100% capital gains tax.

What is a 1031 exchange?

Section 1031 of IRC, commonly known as 1031 exchange, allows investors to defer capital gains tax on exchanging an investment property for another like-kind property. Using a 1031 exchange, an investor can exchange any investment property for another and defer capital gains tax. Properties involved in 1031 exchanges must be held for use in trade, business or for investment purposes. Unfortunately, personal properties don't qualify for 1031 exchanges.

The term 'like-kind' means that properties exchanged using a 1031 exchange must be similar in nature. The majority of investors often judge this term incorrectly. Properties exchanged using a 1031 exchange just need to be similar in nature and needn't serve the same purpose. Section 1031, in no way, requires the properties to serve the same purpose or used in the same way. That's the reason why any investment property can be exchanged for another using a 1031 exchange.

How to choose your 1031 exchange replacement property?

Every investment is different and every investor has their own specific needs. The condition that suits one investor may not be good for the other. Therefore being an investor, you must know your requirements and invest accordingly. For example, if you want to get rid of the burden of property management, you can invest in a DST and complete your 1031 exchange.

A Delaware Statutory Trust or a DST is a private governing trust responsible for buying, managing, administering, and selling real estate properties. DSTs have large institutional-grade properties in their portfolios that often come with pre-arranged property or asset managers. Any accredited investor can buy ownership in DST properties with the help of a real estate broker or agent, who plays a vital role in locating 1031 exchange dst properties.

DSTs generally have large structure and a single DST may have a hundred or even more investors. This is an advantage for small investors as by investing in DSTs, they can acquire large institutional-grade properties, which otherwise they may not be able to afford individually.

Locate ideal DST properties easily -

Certainly, you don't need to get on the streets for locating 1031 exchange dst properties. You can consult a real estate broker and they can provide you with different DST investment options. Once you've picked a DST in which you want to invest, you can explore the properties included in its portfolio.

There is another way using which you can locate DST properties, and it's a lot easier. You can consult a 1031 exchange advisor or expert and they can suggest you different DST investment options. We, at 1031xchange.com, can connect you with a team of highly qualified 1031 exchange advisors and you can speak to any one of them. All you need to do is let us know your requirements and a 1031 exchange advisor will be at your service in the very next moment.

For consultation and assistance regarding 1031 Exchanges, you can call - 888-395-0046 or email us at info@1031xchange.com

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