DEFER TAXES WITH A 1031 EXCHANGE

Take advantage of a 1031 Exchange to Passive Replacement Strategies

If you are considering a 1031 exchange transaction or just want to learn more about these tax-deferred investment options, you’ll find this page and content essential.

The Essential Intro to 1031 Exchanges

Inside our exclusive ebook, you'll learn more about 1031 Exchanges, including rules and important timelines, the professionals you’ll need on your team, potential advantages of the DST structure, and much more.

Ready to learn how to make the most of your real estate investments? Download the ebook now.

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1031 Exchange Process

STEP#1

Owner (Exchanger) decides to sell Investment Property & notifies a Qualified Intermediary (aka QI or Accommodator) of exchange prior to the close of the sale.

STEP #2

Proceeds from the sale are transferred to Qualified Intermediary.

Step#3

Exchanger Identifies Replacement Property(ies) within 45 days of sale and notifies QI.

Step#4

Funds are transferred to seller of Replacement Property(ies). Exchanger has 180 days to close of new Property(ies).

Sale
Date

Day 0

45 day period to identify replacement property(ies).

Must Identify
By Date

Day 45

Exchanger must close on replacement investment property(ies) within 180 days of the closing date of the property that was sold.

Must Close
By Date

Day 180

IS A 1031 EXCHANGE TO DELAWARE STATUTORY TRUST RIGHT FOR YOU?

1031 EXCHANGE BENEFITS

Real Estate investors are able to exchange like-kind properties for business or investment and defer capital gains taxes. Payment of capital gains tax is deferred until property is sold with no re-investment.

1031 EXCHANGE REQUIREMENTS

A Qualified Intermediary is required to control the net sale proceeds of the property exchange. In addition, the investment in the replacement property must be equal to or greater than the cash received from the sale of the original property.

DELAWARE STATUTORY TRUST (DST)

A Delaware Statutory Trust is a separate legal entity formed as a trust under Delaware law. An Investor can use a beneficial interest in a DST as replacement property in a 1031 tax deferred exchange.

Potential Benefits of a 1031 Exchange

1

MORE TO INVEST

Deferring capital gains tax allows the exchanger to reinvest the amount that would otherwise be paid to the federal government.

2

LESS MANAGEMENT

Utilizing a DST offers investors the change to exchange a property they actively manage for a passive ownership property. Simply put, you can keep the income property but lose the day-to-day management responsibilities.

3

DIVERSIFICATION

One property can be exchanged into many properties through a DST as long as the replacement investments are equal to or greater than the proceeds received from the sale of the original property.

Take Your Knowledge of Exchanges to the Next Level

1031 Exchange Workshops

Want to see how an exchange works? Register for one of our informative workshops. You’ll learn about the role a 1031 exchange can play in your overall investment portfolio, and you’ll be able to ask our presenters questions as they walk you through an actual exchange.

Explore our Suite of Educational 1031 Exchange Resources

1031 Exchange Resources

Bangerter Financial has long believed in the power of knowledge, which is a driving factor behind our commitment to developing educational resources that help our clients understand a range of tax and investment concepts. Our 1031 exchange resources library is evidence of that commitment. Enjoy these resources, and please don’t hesitate to contact us with any questions!