Deferring The Gains Tax

WHAT TO DO ?

If you own or have inherited a 2nd home, resort or investment properties???

Don’t want to continue with ownership or the headaches of managing?
Need to avoid those heavy taxable gains?
This is how it’s done..!!
In this instance:
The heirs (2 sons) of their parent’s properties after their death, inherited properties in various areas of the Sunshine State of Florida. You see, the parents had 2nd homes, or resort homes, as vacation rental properties for additional investment income.

The sons had different lifestyles in different parts of the country. Neither one particularly wanted to live or continue the ownership, management or leasing of these properties.

What to do? They decided to sell the properties but found out they would be hit with both inheritance tax and capital gains as well. How to avoid this ‘double taxation’?

Due to the fact that these were investment income producing properties, the heirs found
these properties qualified for a 1031 tax deferred exchange. However, they didn’t want
to trade for real estate they would have to manage and lease themselves.

Working with an advisor, they were informed of the private placement securities market that would offer them alternative investment solutions in various real estate portfolio
products qualifying for real estate tax deferred exchange transactions.

They chose to purchase various DST (Delaware Statutory Trust) products that were investments in an apartment portfolio, a retail shopping center and an office building.
This diversified their portfolio while offering them the alternative real estate products
to tax defer the gains from the sale of the investment homes.

You see, these new DST portfolio products offered them securitized real estate investment properties that were due diligence complete, had non-recourse financing and management in place, while offering the investor both appreciation and depreciation and shared proceeds of sale at time of disposition. Regular monthly income checks provided them each additional passive income without the ‘headaches’.

So now the brothers who inherited their parent’s properties are the proud owners of shares in an apartment complex, retail center, and office building, with regular income checks
on their investment. They have no management responsibilities or worries about the
tenants’ calling them with problems. They are now ‘no hassle’ property owners,
receiving regular monthly checks, and smiling all the way to the bank deposit window.
So, if this is your investment dilemma, — this is how it is done!

 

Because investors situations and objectives vary this information is not intended to indicate suitability for any particular investor. There are risks associated with investing in real estate and Delaware Statutory Trust (DST) properties including, but not limited to, loss of entire investment principal, declining market values, tenant vacancies and illiquidity. Diversification does not guarantee profits or guarantee protection against losses. Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. This material is not to be interpreted as tax or legal advice.