Beacon 1031

Frequently Asked Questions

Welcome to our FAQ section dedicated to answering common questions about 1031 Exchanges and Delaware Statutory Trust (DST) properties.

Frequently Asked Questions

Emerson 1031 is the leading resource for all your 1031 exchange needs. With a proven track record of excellence and a team of dedicated experts, we are here to guide you through the complexities of the 1031 exchange process.

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An investor must identify a replacement property within 45 days of selling their current property and complete the purchase within 180 days. The gain from the sale is rolled over into the new property, and taxes are deferred until later.

A 1031 Exchange DST (Delaware Statutory Trust) is a tax-deferred investment vehicle that allows real estate investors to defer capital gains taxes by exchanging their property for fractional ownership in a professionally managed portfolio of real estate assets.

A Delaware Statutory Trust is a legal entity that allows multiple investors to co-own a single property. DSTs are commonly used in 1031 Exchanges to provide investors with a way to diversify their real estate investments without the responsibilities of direct property ownership.

An investor sells their property in a 1031 Exchange DST and uses the proceeds to acquire fractional ownership in one or more DST properties. This exchange allows investors to defer capital gains taxes that a traditional property sale would otherwise trigger.

DST properties offer investors the opportunity to achieve diversification, access higher-quality properties, and enjoy professional management. They are a popular choice for investors looking to fulfill the 1031 Exchange requirement of reinvesting in like-kind properties.

Any real property held for investment or business purposes, such as rental properties, commercial real estate, or land, can be exchanged for a 1031 Exchange DST property.

The primary advantages of a 1031 Exchange include:

  • Tax deferral.
  • The ability to leverage real estate investments.
  • The potential for portfolio diversification.

It allows investors to preserve capital and increase their returns.

Click the link to check the definition of Accredited Investor.

Yes, there are strict time limits. You have 45 days to identify potential replacement properties and 180 days to complete the purchase of the replacement property from the sale of your original property.

No, a 1031 Exchange is specifically for real estate. It does not apply to personal property or other non-real estate assets.

Like any investment, DST properties come with risks. These may include property-specific risks, market fluctuations, and potential changes in tax laws.

Register on the investor portal to begin a 1031 Exchange or explore DST investments. Our team will guide you to the next steps.

Yes, combining a 1031 Exchange with other tax strategies is possible. Emerson 1031 tax professional will help explore how this can be optimized for your financial situation.

Yes, the properties involved must be held for investment or used in a trade or business. Primary residences do not qualify.

Partial 1031 Exchanges are possible, but the portion not reinvested will be subject to capital gains tax.

You can invest in multiple DST properties within the same 1031 Exchange if they meet the like-kind property criteria.

Yes, the IRS has rules about identifying replacement properties, including the "3-property rule" and the "200% rule." It's important to stick to these guidelines.

If you miss the deadline, your 1031 Exchange will likely fail, and you'll be liable for capital gains taxes on the sale.

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