The Delaware Statutory Trust Act created the legal framework that makes Delaware Statutory Trusts possible, and that matters to 1031 investors because DST interests can be structured as replacement property for a qualifying exchange. In practical terms, the Act supports passive ownership, legal separation, and a trust structure widely used in fractional real estate investing. … [Read more...] about The Delaware Statutory Trust Act: What 1031 Investors Should Know
Which 1031 Exchange 5-Year Rule Do People Mean?
Usually, when people mention the 1031 exchange 5-year rule, they mean the rule that applies when you acquired a property through a 1031 exchange, later converted it into your primary residence, and now want to use the Section 121 home-sale exclusion. In that case, you generally must own the property for at least five years before selling. … [Read more...] about Which 1031 Exchange 5-Year Rule Do People Mean?
Reverse 1031 Exchange Benefits
There are several types of 1031 exchanges – forward exchanges, reverse exchanges, build-to-suit exchanges, etc. Each type has its own benefits. In this article, we discuss some of the numerous benefits of a reverse 1031 exchange of real estate. Locking Down Replacement Property A reverse 1031 exchange allows you to nail down a replacement property before you offload your … [Read more...] about Reverse 1031 Exchange Benefits
1031 Exchange in Florida: A State-Specific FAQ for Sellers and Buyers
A 1031 exchange in Florida follows the same federal rules as anywhere else: sell investment property, reinvest through a qualified intermediary, identify replacement property within 45 days, and close within 180 days. Florida’s main state-specific advantage is the absence of a state income tax, but sellers and buyers still need to plan for transfer taxes, local rules, and … [Read more...] about 1031 Exchange in Florida: A State-Specific FAQ for Sellers and Buyers
1031 Exchange in California: What State-Specific Rules Should Investors Check?
California investors should look beyond the federal 1031 rules and confirm four state-specific issues before closing: California’s clawback treatment for out-of-state replacement property, required state reporting, withholding rules tied to the sale of California real estate, and possible property tax reassessment. Those items can materially affect taxes, cash flow, and … [Read more...] about 1031 Exchange in California: What State-Specific Rules Should Investors Check?