© 2024 Real Estate Consultants of Colorado, LLC
Austin, TX
The 1031 exchange is a cornerstone of real estate investing: after selling a property at a profit, one can defer capital gains tax liability from the sale by using the sale proceeds to purchase a "like kind" property within 180 days. For those investors seeking to retire from actively managing their real estate investments, certain real estate investment sponsors syndicate investors with Delaware Statutory Trust ("DST") and Tenant-in-Common ("TIC") legal structures. DSTs and TICs can accept an investor's 1031 exchange proceeds, allowing the investor a passive investment opportunity not unlike buying a REIT on the public markets. DSTs and TICs also allow the investor to later 1031 exchange out of the syndication and back into a direct real estate investment.
The 721 exchange is a lessor-known option allowing a real estate investor to sell a property at a profit and defer capital gains tax liability by exchanging into an equity position in another real estate venture. Unlike DSTs and TICs, the 721 exchange converts the equity position into a financial security that invests in real estate. If you are considering the sale and leaseback of your industrial property and would consider deferring your capital gains tax liability through a 721 exchange into the purchasing entity, please contact us. We would be delighted to introduce you to a well-qualified buyer. This structure allows you to continue being invested in a property in which you believe without the headache of property management - all while deferring your capital gains tax liability.
The 1031 exchange is a cornerstone of real estate investing: after selling a property at a profit, one can defer capital gains tax liability from the sale by using the sale proceeds to purchase a "like kind" property within 180 days. For those investors seeking to retire from actively managing their real estate investments, certain real estate investment sponsors syndicate investors with Delaware Statutory Trust ("DST") and Tenant-in-Common ("TIC") legal structures. DSTs and TICs can accept an investor's 1031 exchange proceeds, allowing the investor a passive investment opportunity not unlike buying a REIT on the public markets. DSTs and TICs also allow the investor to later 1031 exchange out of the syndication and back into a direct real estate investment.
The 721 exchange is a lessor-known option allowing a real estate investor to sell a property at a profit and defer capital gains tax liability by exchanging into an equity position in another real estate venture. Unlike DSTs and TICs, the 721 exchange converts the equity position into a financial security that invests in real estate. If you are considering the sale and leaseback of your industrial property and would consider deferring your capital gains tax liability through a 721 exchange into the purchasing entity, please contact us. We would be delighted to introduce you to a well-qualified buyer. This structure allows you to continue being invested in a property in which you believe without the headache of property management - all while deferring your capital gains tax liability.
© 2019 Real Estate Consultants of Colorado, LLC