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What is Boot in a 1031 Exchange?
When completing a 1031 exchange, the primary goal is to defer capital gains tax by reinvesting all proceeds from your sale into like-kind property. However, if you don’t fully reinvest the proceeds or replace the debt from your relinquished property, you may trigger what’s known as “boot.” What is Boot? Boot is any non-like-kind property…
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What Are The Timelines In A 1031 Exchange?
A 1031 exchange offers real estate investors a powerful tax-deferral strategy, but it comes with strict IRS deadlines that cannot be missed. Missing these deadlines will cause the exchange to fail and will trigger a taxable event. When Do 1031 Exchange Timelines Start? Day 0 of the exchange period is the closing date of the…
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1031 Exchanges: Investing in a Delaware Statutory Trust (DST)
Commercial real estate offers strong potential for income and appreciation, but direct ownership can be costly and management-intensive for individual investors. Delaware Statutory Trusts, or DSTs, provide a way to invest in institutional-quality commercial properties with lower minimum investments and passive management. What is a DST? A Delaware Statutory Trust is a legal entity that…