Here at Camuso CPA, we offer a wide array of tax services for real estate investors including tax preparation and tax planning. If you are interested in how this might specifically benefit your business or portfolio, please don’t hesitate to reach out in detail today to schedule a free initial consultation regarding your specific facts and circumstances.
Do you have a rental property that you’re looking to sell using 1031 exchange?
There is a common misconception that you can simply do a 1031 exchange directly into a syndication. However, this is not possible because when you invest in a syndication, you are purchasing part of an entity that owns real estate not the real estate itself.
A viable option as an alternative which can use a 1031 exchange is a tenant in common structure or Delaware Statutory Trust . While these options are similar to syndications, they are not syndications.
Delaware Statutory Trust are derived from Delaware Statutory law as a separate legal entity and formed as private governing agreements for the purposes of managing, administering, investing and or operating real, tangible and intangible property; or business or professional activities for profit that are carried on by one or more individuals who act as trustees for the benefit of a party who is entitled to a beneficial interest in the trust property. Delaware Statutory Trusts are not new, in 2004, the IRS came out with an official Revenue Ruling detailing how a DST could be structured in such a way that it would qualify as a property replacement vehicle for 1031 Exchanges.
Here at Camuso CPA, we do have the ability to offer tax preparation and planning services to our real estate clients. If you are interested into how this might benefit your business or portfolio, please don’t hesitate to give us a call today. One of our friendly and knowledgeable representatives will be happy to answers any questions you have.