Quite often, a seller may want to sell and retire and doesn’t want any more real estate. A 1031 won’t work but we will. You can sell today, defer taxes today, retire today and receive a larger lifetime retirement income than if the seller paid taxes first. And everything can be passed on to your heirs.

When using a 1031 to buy a replacement property, you may get partial depreciation on the replacement property but not a new depreciation schedule. When buying another property using the Deferred Sales Trust, you do get a new depreciation schedule. So, by using our trust you will generate more tax benefits with a new depreciation schedule every time you purchase another property. Read more

Quite often, there may be more than 1 property owner. Let’s take a hypothetical situation. Two partners let’s call them Johnny and Amber bought a property together 20 years ago as best friends. However, every time Johnny wanted to do something with the property, Amber said no and vice versa. Now they can’t stand each other and want to sell. They have a large gain on the property but if they use a 1031, both must be partners in the new property and that might not be a great situation for them or planet Earth. Fortunately, our DST is a perfect option because they can sell, each can create their own trust and never have to speak to each other again. Mankind is saved.

Because of all the requirements to complete a 1031, there are no guarantees that a 1031 will be completed. Most probably are but you don’t want to part of a failed exchange and now you must pay taxes. Unless you use us as a 1031 rescue. If the 1031 fails, the sales proceeds are sent back to you, and you pay taxes. If you use us as a 1031 rescue in advance, the proceeds come to us, no taxes are needed to be paid AND you are still in the game to buy more real estate. But now, you don’t have to follow 1031 guidelines.

You would like to sell your primary residential property that you have lived in for decades. Because of appreciation, you gain will be much larger than your Section 121 exclusion. You guessed it. A 1031 can’t help but again we can. Say you live in LA and because you love high heat and humidity, you want to move to Texas or Florida. Oh, did I mention they have no state income tax? Now, you can sell your primary residence and defer the capital gains tax, state tax and the Medicare tax on the gains of your sale and receive a much larger pretax lifetime retirement income than if you paid taxes first. If you prefer a much colder climate, move to Iceland and don’t tell anyone.

Something that is often overlooked when considering a 1031 or Deferred Sales Trust is timing. In a 1031, you must make decisions up front that you must keep possibly for years in the future. In the case of a Deferred Sales Trust, you can make decisions in “real time”. When you transact a 1031 depending on the situation, you may not have control over the replacement property or if you do, the timing to sell might not be right. Say a few years after using the Deferred Sales Trust, unfortunately you have a large capital loss. Using the trust, you can take some of your capital gains out of the trust without paying taxes to offset your capital loss. There are other examples where you can make “real time” decisions where you can’t with a 1031.

Also, as previously mentioned, in a 1031, you have to identify a property within 45 days. With our trust, take as long as you would like in order to buy another property under more favorable conditions.