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.
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.
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 or email us at
info@1031xchange.com.
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