Uncategorized
The Role of a Qualified Intermediary (A.K.A. an exchange accommodator) in 1031 Exchanges: Why They are Crucial.
Read More »
beacon1031
June 5, 2024
Unlock Tax Advantages: Deferring Capital Gains with Beacon 1031 Exchange DST Properties
Your Resource For All Your 1031 Exchange Needs
- 20+ Years In Real Estate
- 65+ DST Offerings
- 36+ DST Sponsors
- 6+ 721 Exchange Programs
What is a 1031 Exchange DST?
A 1031 Exchange Delaware Statutory Trust (DST) is a legal entity created to hold title to investment real estate. As a form of passive real estate ownership, DSTs allow investors to diversify their portfolios by investing in multiple properties instead of just one. Since DSTs are a “like-kind” 1031 exchange, they can be used to defer capital gains taxes.
What is a DST Investment?
A Delaware statutory trust (DST) is a unique real estate investment vehicle that allows individual investors to purchase fractional interests in a large commercial real estate asset (one or multiple properties) that typically would not be accessible to them as a solo investor.
- Access to passive real estate investments.
- Professional asset management by firms.
- Oversight of property acquisition, due diligence, loan sourcing, asset management, and property disposition.
- Potential deferral of up to 100% of taxes from the sale of investment property.
- IRS Revenue Ruling 2004-86 permits 1031 Exchanges into and out of DSTs holding real estate titles.
- Selling appreciated real estate.
- Seeking diversification.
- Interested in passive property ownership.
- Fractional interests in properties.
- Managed by DSTs.
- Often involves triple net (NNN) leases for passive income.
- Asset management firms handle property operations.
- Due diligence, financing, and management tasks are professionally managed.
- Potential to defer taxes from property sale.
- Offers tax advantages for investors.
DST Investment Benefits
- Diversification across various asset classes and geographic regions.
- Professional management relieves investors of day-to-day responsibilities.
- Tax benefits, including capital gains tax deferral through 1031 exchanges.
- Access to high-quality, income-producing properties.
- Potential for stable cash flow and long-term appreciation.
- Lower minimum investment requirements compared to direct property ownership.
- Opportunity to invest in properties otherwise inaccessible to individual investors.
- Passive investment structure suitable for busy or hands-off investors.
- Limited liability protection for investors.
- Ability to participate in larger-scale real estate projects.
Our Investment Offerings
Why Choose Beacon 1031 ?
FEATURED OFFERINGS
Explore Our Current DST Properties 506(c)
Passco Springhouse DST
Multifamily
Passco Springhouse DST
Multifamily
Manufacturing Essential Asset DST
Industrial
Manufacturing Essential Asset DST
Industrial
CX Lively Indigo Run DST
Multifamily
CX Lively Indigo Run DST
Multifamily
Algonquin Senior Living DST
Senior Housing
Algonquin Senior Living DST
Senior Housing
Inspired Senior Living of Dartmouth DST
Senior Housing
Inspired Senior Living of Dartmouth DST
Inspired Healthcare Capital LLC
Real Stories, Real Success
Hear from investors who have achieved their financial goals with us. Read their experiences and understand how our investment solutions have transformed their portfolios and lives.
• The testimonials may not be representative of the experience of other clients.
• Testimonials are no guarantee of future performance or success.
• No remuneration was offered or paid for any of the testimonials.
• Testimonials are no guarantee of future performance or success.
• No remuneration was offered or paid for any of the testimonials.
Why
BEACON
Expertise: With decades of combined experience, our team of real estate professionals guides you through every step of the investment process.
Tailored Solutions: We understand that each investor has unique goals. Our personalized approach ensures your investments align with your financial objectives.
1031
What Is A 1031 Exchange DST?
A 1031 Exchange Delaware Statutory Trust (DST) is a legal entity created for the purpose of holding title to investment real estate. As a form of passive real estate ownership, DSTs allow investors a chance to diversify their portfolios by placing their money into multiple properties instead of just one. Since DSTs are a “like-kind” 1031 exchange, they can be used to defer capital gains taxes.
Why
BEACON
Expertise: With decades of combined experience, our team of real estate professionals guides you through every step of the investment process.
Tailored Solutions: We understand that each investor has unique goals. Our personalized approach ensures your investments align with your financial objectives.
1031
A 1031 exchange is a tax-deferral strategy that allows individuals or businesses to sell a property and reinvest the proceeds into another property of similar kind and value. You can defer capital gains taxes that would otherwise be due upon the sale. This exchange must follow specific IRS guidelines and timelines to qualify for tax benefits.
WHY CHOOSE US
1031 Exchange
Discover the benefits of deferring capital gains taxes while reinvesting your proceeds into like-kind properties.
Diversified Portfolios
Explore our carefully curated portfolios that span various real estate asset classes, designed to target optimal risk-adjusted returns.
Tax-Efficient Strategies
Learn how our strategies help you maximize tax advantages and increase your after-tax income.
Previous
Next
Why Real Estate?
Understand the potential advantages of real estate investment, such as passive income, potential appreciation, and portfolio diversification.
Get Started Today
Free Consultation
Schedule a free consultation to discuss your investment goals and explore personalized options.
Newsletter Signup
Stay updated with the latest industry insights, investment opportunities, and educational content.
Resources & Educational Content
Access our library of informative articles, webinars, and guides that empower you to make informed investment decisions.
Real Stories, Real Success
Hear from investors who have achieved their financial goals with us. Read their experiences and understand how our investment solutions have transformed their portfolios and lives.
• The testimonials may not be representative of the experience of other clients.
• Testimonials are no guarantee of future performance or success.
• No remuneration was offered or paid for any of the testimonials.
• Testimonials are no guarantee of future performance or success.
• No remuneration was offered or paid for any of the testimonials.
Recent Blogs
Frequently Asked Questions
A 1031 exchange is a way of swapping real property, held for investment, for any other type of investment property. If the time requirements and rules are adhered to you will be able to defer your capital gains taxes, as the law is now written.
In a 1031 exchange certain rules and guidelines must be adhered to in order to defer the capital gains and recapture of deprecation taxes that would be incurred in a normal sale. While you are functionally selling and then acquiring another property(ies), for tax purposes you are only exchanging the value of one property for the value of one or more properties. The primary requirement is for there to be an exchange accommodator, typically referred to as a qualified intermediary. The practical implication of that requirement is that when you sell the property, for it to be an exchange, you do not take possession of the sale proceeds, the proceeds of the sale are sent to this qualified intermediary for your benefit. Then when you acquire the replacement property(ies) the executed purchase agreement is sent to the qualified intermediary and that company purchases the properties with your funds. The 1031 exchange rules are the same when purchasing properties in the DST structure as they are with any other replacement properties. The difference being that you are obtaining percentage ownership in one or more properties as opposed to 100% 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 possibility of achieving diversification, access to higher quality properties, and enjoying totally passive real estate investments that are professionally managed. DSTs 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 one or more properties in one or many DSTs.
Yes, there are strict time limitations. The investor must identify potential replacement DST properties within 45 days of the sale of their relinquished property and complete the acquisition within 180 days.