MOVE FROM AN ACTIVE TO A PASSIVE ROLE OF REAL ESTATE OWNERSHIP.
Tax deferral using the 1031 exchange
Eliminating the day-to-day headaches of property management Because many DST investors are at or near retirement, they are simply tired of the hassles that real estate ownership and management often bring. They are tired of the tenants, toilets and trash and want to move away from actively managing their properties. Many real estate investors have wanted to sell their apartments, rentals and commercial properties for years but haven’t been able to find a property to exchange into. They just can’t stomach the tax bill due after adding up the federal capital gains tax, state capital gains tax, depreciation recapture tax and the Medicare surtax. The DST 1031 property solution provides investors an ability to move from an active to a passive role of real estate ownership on a tax-deferred basis. The DST 1031 property provides a passive ownership structure, allowing them to enjoy retirement, grandkids, travel and leisure, as well as to focus on other things that they are more passionate about instead of property management headaches.
Increased cash flow potential**
Many investors are receiving a lower amount of cash flow on their current properties than they should be due to their properties’ under-market rents, multiple vacancies and/or raw or vacant land that is sitting idle. DST 1031 exchange properties provide an opportunity for investors to potentially increase the cash flow** on their real estate holdings via a tax deferred 1031 exchange.
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