1031 DST Exchange Advisors
1031 DST Exchange Advisors understand the struggles you face in managing the tax implications of your real estate assets. One of our core missions is to offer a holistic approach to assist you to navigate through 1031 Exchanges and Delaware Statutory Trusts (DST). Our financial professionals are highly skilled to craft a personal plan to cater to your entire financial life and your retirement needs. After years in the business in Long Beach, we earned impeccable prestige for educating and assisting individuals in an easy-to-understand manner so they can grasp personal finance and use those concepts to pursue their financial objects.
Pave your path to a successful DST investment
It is really simple and straightforward to create a DST. in general, DST empowers a trustee through a trust agreement like a general manager to make decisions about the invested properties under the DST. In contrast, other conventional property investment methods normally require every investor to consent to a single change or remedial action about the property. Such a process could go on for days or weeks. It puts DST standing out as a highly efficient tool to adapt to changing situations.
A DST is a separate legal entity. Although DST deals usually last between five and ten years in practice, it will not terminate or dissolve by beneficial owner’s affairs, such as death, bankruptcy, or dissolution. Additionally, having a separate legal entity enables DST to appear as an independent party in a legal document with a third-party. Therefore, as long as the property is managed well by the trustee or the property manager, the profit could be generated continuously for years to come.
The Delaware Statutory Trust Act provides that “no creditor of the beneficial owner shall have any right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to, the property of the statutory trust”. This statutory footing maximizes the protection over the investor’s properties under DST. As a result, any liabilities incurred under DST’s name can only be limited to DST itself. In other words, the DST investors will not bear any personal liability for DST’s debt obligations.
Real property only
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 the majority of the 1031 Exchange was already dominated by commercial and investment real estate, it did not impact the market very 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. Properties that involve stocks, bonds, notes, securities, and interest in partnerships are excluded. Although it does not require the investor to be a US resident, both properties for the Exchange must be located in the United States. In addition, properties involved in the Exchange must be bought and sold for investment or business purposes only. The value of the property purchased must be at least the same or more than the one that was sold for the Exchange.
This requirement is self-evident. In order to be qualified under the 1031 Exchange for the benefit of the capital gains tax deferral, the tax return and the title holder must be consistent among all the properties that are involved in the Exchange. After all, Form 8824 is the proper document to report an investor’s 1031 Exchange. Conveniently, the form, itself, provides further detained instructions to navigate the investor through the process.
Professional advice that you can count on
Located in the center of Long Beach, California, 1031 DST Exchange Advisors have been widely recognized and respected in the industry. With years of experience, 1031 DST Exchange Advisors is where you can place your trust and confidence. Safeguarding and maximizing your financial interest is our sole mission. Since the creation of the 1031 DST Exchange Advisors, we have proved our capability and competence to deliver financial stability and prosperity to all our clients. Whether you are starting a career, beginning your family, switching your profession, sending children to college, or struggling through unexpected economic hardship, personalized services and bespoke solutions provided by our highly skilled experts are right at your doorstep and ready to expand your financial landscape.
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. 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 single client to ensure your needs and problems to be heard and addressed fully. Our advisors are fully licensed and widely recognized in the fields they practice. They are ready to work tirelessly and offer a matchless strategic plan only for you.