The 1031 Exchange Rules In Delaware

1. What Are The 1031 Exchange Rules In Delaware? Delaware seems to be the perfect combination of appreciation, return, and safety. There are enough reasons to substantiate that. Check out the top reasons that make choosing a replacement property in Delaware for a 1031 Exchange a very lucrative deal – Why Do A 1031 Exchange In Delaware? Assured rent by local US government, making it a safe investment option. House prices in Delaware are one of the most inexpensive in the country since the last recession. Huge potential for appreciation since Delaware housing hit lowest in 2012 and now continues to rise. You can get a much higher return on investment due to low house prices since 2007 and stable rental rates with government housing demand. Delaware also has the lowest property holding costs such as repairs, insurance, and property tax. ZERO Sales Tax on goods and services for anything purchased in Delaware. The cost of living in Delaware is meagre if compared to any other state, attracting lots of students from local and around the world. Delaware guarantees a better living environment as it's far enough from the city pollution, yet close enough for sufficient employment opportunities. Delaware has seen a considerable increase in cash buyer activity over the last six years. 1031 Exchange Rules In Delaware Before opting for a 1031 Exchange in Delaware, you should know the basics. 1031 Exchange allows an investor to trade property and reinvest the gains in a brand-new property and defer all capital gain taxes.

2. A Delaware Statutory Trust (DST) is basically a business trust created under Delaware law. It can be used in diverse forms of business settings. DSTs have become very popular as pass- through entities for holding commercial real estate assets for investors. Upon the sale of a property in a DST, the investor gets the privilege to defer any capital gains tax or pay any capital gains tax by participating in a 1031 exchange. Section 1031 of the Internal Revenue Code allows an investor to defer the payment of capital gains taxes that may crop up from the sale of a commercial or investment property. By investing the proceeds of the sale in a "like-kind" DST real estate investment, real estate taxes may be deferred as long as the investor meets specific requirements. Here's a quick step by step explanation of a 1031 exchange: Step 1 •The property, also known as the relinquished property, is first sold by the exchanger, and proceeds are then escrowed with a Qualified Intermediary (QI). Step 2 •A Qualified Intermediary, transfers funds for the purchase of replacement property through a written agreement with the investor. Step 3 •Exchanger receives his new property (or DST interest). Allow Our Experts to Manage a Successful 1031 Exchange in Delaware for You The process of 1031 exchange in Delaware is extremely complex in nature. We at 1031xchange have expert advisors with extensive experience in handling highly profitable exchanges for our diverse client base. To know more about 1031 exchange in Delaware call - 888-993-2835 2236 S Lakeshore Dr Maple Plain 55359 Minnesota USA info@1031xchange.com About 1031xchange:- 1031xchange.com is a one-Stop Solution for all your 1031 exchange needs like - DST, NNN, TIC. Here we have a experienced team of experts to •Provide full Assistance for Your 1031 Exchange •Help With Fund Transfer/Documentation •Provide One-to-One Consultation With 1031 Experts •Provide management Free Investment 1031 exchange is an excellent tax-deferral strategy. If the guidelines laid down by IRS are followed correctly, it lets investors defer capital gain taxes that come from the sale of a

3. property. However, you must meet some of the requirements to qualify for a 1031 exchange. 1031 Exchange Rules: •Sell a real estate investment property. •Put the proceeds securely with an independent third party known as a Qualified Intermediary. •Identify new property (or properties) to purchase within 45 days. Close on the new property within 180 days using capital from the sale of the old property.