Are you tired of the day to day responsibilities of managing investment real estate such as paying taxes and insurance and dealing with tenant issues?
Have you thought of relieving yourself of the responsibilities by selling the real estate but haven’t because of the potential tax bill?
Would you be interested in a scenario that allows you to sell your investment property relieving you of the day to day responsibilities and also allows you to defer any capital gains tax?
CONSIDER A DELAWARE STATUTORY TRUST (DST)
I am sure many of you are aware of the 1031 Tax Exchange. Under Section 1031 of the United States Internal Revenue Code (26 U.S.C. § 1031), a taxpayer may defer recognition of capital gains and related Federal income tax liability on the exchange of certain types of property.
What you may not be aware of is the opportunity to do a 1031 exchange may not be available much longer. Current legislative discussions under the new administration may adversely affect the 1031 Exchange. If the Blueprint for Tax Reform is pushed through and approved, you may lose the ability to exit your Investment or Business properties tax free.
Delaware Statutory Trusts will enable you to take advantage of the 1031 exchange while relieving you of management responsibilities and enabling you to defer any capital gain taxes.
We’d enjoy an opportunity to tell you more about this. If you believe you could benefit from learning more, contact us today!
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