1031 DST Custom Property Exchange
1031 DST Custom Property Exchange has ample experience to transform your business’s struggles in choosing the right investment into a highly profitable asset. Solely tailored to your commercial needs, we offer a holistic approach to assist you in navigating DST options coupled with 1031 Exchange. After serving our valuable high-profile clients in Woodbridge over the decades, we have concluded numerous outstanding investments for many local DST investors and beyond. Offering bespoke solutions to execute your unique commercial vision is all we do for 24 hours a day, seven days a week.
Owning a piece of property through a 1031 DST is your next money-making investment plan.
Restrict to Real Property
Prior to December 31, 2017, tangible or intangible properties were permitted under the 1031 Exchange. It includes aircraft, automobiles, heavy equipment, and mineral rights. However, after the cut-off date, only buying or selling real properties are qualified for the purpose of the 1031 Exchange. This alteration was manifested by the language assertion directly in the Internal Revenue Code. Such a change was considered substantial. But since commercial and investment real estates already dominated the majority of the 1031 Exchange, it did not impact the market much in practice.
The properties have to be “the same nature or character, even if they differ in grade or quality.” For example, swapping a rental property with a gym space would be allowed. However, properties that involve stocks, bonds, notes, securities, and interest in partnerships are excluded from the 1031 Exchange. Although it does not require the investor to be a US resident, both properties for the Exchange must be located in the United States. It is worth noting that the Foreign Investment in Real Property Tax Act of 1980 (“FIRPTA”) will be applicable for a foreign investor. It can trump some benefits of using the 1031 Exchange.
Any property received by the taxpayer shall not be treated as like-kind property if the property is not identified as like-kind property within 45 days since the date in which the taxpayer transfers the property relinquished in the exchange. In other words, within the duration of 45 calendar days, since the property owner sold the original property, he must correctly identify up to three potential like-kind properties. In addition, the identified property is received outwith the 180-day window starting on the date at which the taxpayer transfers the property relinquished in the exchange. It means that the investor must purchase the identified property or properties within 180 days for the purpose of the 1031 Exchange.
Because DST is a statutory trust, the Delaware Statutory Trust Act provides a comprehensive framework for legal reference. It expressly stipulates the authorization process and rules of governing. Contrary to “common law trusts”, Delaware Statutory Trusts can have statutes to revert to, if certain provisions are not clearly defined in the trust agreement. Therefore, it is much easier and quicker for a trust holder to get his or her questions answered with a high certainty within a few pages rather than reading through hundreds of cases.
DST enjoys the principle of freedom of contract. It permits the parties to create relationships that can tailor their business needs through their DST Trust Agreement (also known as the governing instrument). A trust agreement is mandatory for the creation of a DST. The agreement may contain any provision relating to the management of the business and affairs of the statutory trust, and the rights, duties, and obligations of the trustees, beneficial owners, and other persons. Based on the Delaware Statutory Trust Act, a governing instrument of DST can provide for taking any action, including the accomplishment of a merger, conversion, or consolidation. In addition. DST also allows other persons to manage the trust, including the DST’s beneficial owners.
It is really simple and straightforward to create a DST. It must be an association established by a governing instrument. A governing instrument is absolutely vital for a DST, and it is the very reason why DST excels over the other investment tools. A DST governing instrument can be any written instrument with few limitations on its content. The trust agreement does not have to be drafted in English, and no approval is required from any authority in Delaware for the submission of such agreement. This could be a major attraction for business organizations or private trust holders.
Exchange your DST property and start profiting from it.
We recognize that every client is unique. Hence we do not believe in a streamlined template solution that can apply to all. We spend an extraordinary amount of time with every client to ensure your needs and problems are heard and addressed thoroughly. Our advisors are fully licensed and widely recognized in the fields they practice. Our wealth management formula addresses the top five concerns most important to affluent families: Investment Consulting, Wealth Enhancement, Wealth Transfer, Wealth Protection, and Charitable Giving. They are ready to work tirelessly and offer a matchless strategic plan only for you.
Descriptions for 1031 DST Custom Property Exchange
Exchange property for 1031 DST can be a daunting process. There are numerous restrictions laid out in the 1031 Exchange. They limit the qualification of what type and value of properties can be exchanged for the purpose of 1031 DST. Furthermore, once the properties are identified and qualified, the transactions of purchase and sale have to be concluded within a specific time window. But no need to worry, 1031 DST Custom Property Exchange is here for you. Our advisors are experts in providing customized investment plans just for your business. We can help you through the entire process, including the identification and qualification of your DST properties. We have outstanding records to execute our clients’ commercial desires. Wait no more. Contact us and schedule a consultation with us today.