The 45-day identification window can move quickly in a ๐ญ๐ฌ๐ฏ๐ญ ๐๐ ๐ฐ๐ต๐ฎ๐ป๐ด๐ฒ. While direct property acquisition is often Plan A, investors may also want to consider whether a ๐๐ฒ๐น๐ฎ๐๐ฎ๐ฟ๐ฒ ๐ฆ๐๐ฎ๐๐๐๐ผ๐ฟ๐ ๐ง๐ฟ๐๐๐, or DST, belongs in their backup plan.
Donโt let the 45-day identification deadline drive your investment decision.
Plan A โ Direct Property Acquisition:
Offers greater control
Allows you to select your own property
Has the potential for appreciation
Plan B โ Delaware Statutory Trust (DST):
Passive ownership
Eligible for 1031 exchange treatment
Potential backup option when replacement property is limited
Before Investing in a DST, ask yourself these questions:
Who is the sponsor of the DST?
What is the exit strategy?
Are distributions supported by underlying property cash flow?
The best 1031 exchange starts from both a tax perspective and an investment perspective. Make sure you consider both before beginning your 1031 exchange.
See If Your Property Qualifies for 1031 Exchange Treatment
Work with a qualified intermediary you can count on throughout the 1031 exchange process by hiring CPEC1031, LLC. We facilitate 1031 exchange transactions across the Twin Cities, greater Minnesota, and throughout the United States. No matter where your property is located, we have the skills and experience needed to make sure you can defer 100% of your capital gains tax burden. Reach out to our intermediaries today to learn more about the process and see if you qualify for 1031 exchange treatment.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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