Our goal is to help all investors stay educated by providing straightforward, unbiased 1031 exchange information:

1031 tax-deferred exchanges allow investors to defer paying capital gains tax by reinvesting funds from property sales back into their real estate portfolios. Section 1031 Exchanges are a key tool educated investors use to benefit from existing tax regulations and preserve and grow investment capital in any economic cycle.

Understanding 1031 Exchange Information Helps Educated Investors Grow Portfolios

To get the most out of their on-going education, it’s important for investors to ask themselves three important questions about real estate investing:

  1. What is my real estate investment timeline?
  2. Have I Researched Available 1031 Exchange Information?
  3. Does Passive Investing Make More Sense Than Doing Everything Myself?

What is My Real Estate Investment Timeline?

A good way of thinking about a timeline for investing in real estate is to consider how important liquidity will be to you 5, 15, and even 30 years or more from now.

Historically, real estate has been an attractive way to build wealth over the long term. The trade-off is that capital invested in real estate is illiquid. Unlike shares of a publicly traded stock, real estate can’t be bought and sold at the push of a button on your computer keyboard.

Because real estate lacks liquidity investors should understand if and when they’ll need to turn their investments into cash and identify a real estate investment timeline accordingly.

Have I Researched Available 1031 Exchange Information?

Owning real estate gives a unique combination of three benefits that many other investments do not offer:

  • First, investment real estate provides two cash flow streams: short-term through the monthly net income and long-term through the appreciation of the real property when it is sold.
  • Second, tax law allows owners of real estate to reduce their annual cash income from the property by deducting a non-cash depreciation expense. This allows investors with positive net cash flow to reduce the amount of taxable income from their real estate investments.
  • Third, Section 1031 tax deferred exchanges allow real estate investors who sell a like-kind property and replace it with another piece of real estate to defer paying the tax on any capital gains resulting from the exchange transaction. In our NASIS 1031 Exchange Guide we illustrate how one investor was able to grow the value of his real estate investment portfolio by nearly 70% by deferring the payment of capital gains tax and reinvesting the sales proceeds in like-kind real estate.

Does Passive Investing Make More Sense Than Doing Everything Myself?

Most people begin investing in real estate in their spare time. They purchase a single-family home, rent it out to tenants, and manage the property themselves. That’s a common example of active real estate investing where the owner does everything.

However, when you’re hands-on it’s difficult to scale up and grow a real estate investment portfolio. Active real estate investing takes a lot of time and also limits the type and quality of property that can be invested in.

Passive real estate investing through an experienced real estate sponsor, like NAS Investment Solutions, can enable an investor to save time and expand the available type and quality of investment. By placing capital in a DST or TIC structured vehicle, investors have access to institutional-grade commercial real estate such as multifamily and student housing, and office, medical, warehouse, and industrial flex income property in both primary and high-yield secondary markets.

NAS Investment Solutions’ investment properties have been professionally underwritten and are managed by a team of professionals that have a wealth of experience in managing hundreds of investment properties across the country. DST and TIC real estate investments can offer an attractive 1031 opportunity, which can be precisely sized to meet the investor’s specific needs, and they can also be employed as part of an investor’s strategy to diversify his or her portfolio.

1031 Exchange Rules

  • Property must be like-kind real estate
  • Real estate must be used for investment or business, and not be considered stock in trade or personal property
  • Property replaced must be of equal or greater value to the property being relinquished
  • Boot must not be received by the seller
  • Title of the relinquished property and the replacement property must be in the same taxpayer name
  • Replacement property must be identified within 45 days of closing on the sale of the relinquished property
  • Replacement property must be purchased within 180 days of closing on the sale of the relinquished property.

Frequently Asked Questions

  • Can DST interests be liquidated or transferred?
  • If Interest in a DST property is purchased simply as an investment, can a 1031 Exchange in turn be initiated with the purchased interest when the property sells?
  • Are there limitations when a DST-Structured property is used as a 1031 Exchange?
  • What are the advantages of a DST-Structured investment in commercial property?
  • How does an investment in a DST-Structured property differ from an investment in a tenants-in-common structured property?
  • Are there a minimum and maximum investment amounts to participate in a DST property offering?
  • Are DST-Structured properties commonly used for a 1031 Exchange?
  • How is a replacement property identified?
  • What Qualifies as a “like-kind” Replacement Property?
  • Are there any restrictions on a DST Property When Used for a 1031 Exchange?
  • What are the disadvantages of Delaware Statutory Trust (DST)?
  • What are the advantages of Delaware Statutory Trust (DST)?
  • What is a Delaware Statutory Trust (DST)?
  • What are the disadvantages of Tenant in Common (TIC)?
  • What are the advantages of a Tenant in Common (TIC) Property?
  • What is Tenant in Common (TIC)?
  • What are the benefits to Delaware Statutory Trust (DST) and Tenant in Common (TIC)?
  • Are there different proportional ownership structures for 1031 tax deferred exchanges?
  • How does Triple Net Lease work?
  • What are the advantages of triple net leased property to investors and landlords?
  • What is the meaning of NNN?
  • What is Triple Net (NNN) Lease?
  • What is Modified Gross Lease?
  • What is a Gross Lease?
  • Are there different types of Commercial Lease?
  • Do investors have to report 1031 exchanges?
  • What is a 1031 Exchange?
  • How a 1031 Exchange is Accomplished?
  • How does a 1031 Exchange help with depreciation?
  • How is depreciation calculated?
  • What is depreciation?
  • Are there any rules that apply to identifying a replacement property?
  • What does it mean to have the property (or properties) to be identified?
  • What is considered a "related party" by the IRS?
  • Could a taxpayers act as their own Qualified Intermediary?
  • What is the function of a Qualified Intermediary?
  • What is Qualified Intermediary?
  • Could sellers take possession of the money before the tax deferred transaction is complete?
  • What are examples of real property for investment?
  • What are the recent changes to Like-Kind Exchanges?
  • Can I exchange for real property outside the United States?
  • Are there different types of 1031 Exchanges?
  • How does the IRS calculate the 180 day purchase window period?
  • When do I have to pay Capital Gains Tax on the boot?
  • What is Boot?
  • What are the requirements for a 1031 exchange?
  • What are the benefits of a 1031 exchange?

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Estimate the Capital Gains Tax Rate For Your State

Many states impose a tax on capital gains, in addition to the federal tax rate. Each state also has their own methodology for calculating the tax. Our calculator will help estimate the top marginal tax rate for your state.  Select your state from the drop down menu and your state’s taxes will be automatically estimated.

View Rates For All States

California Top Marginal Tax Rate on Capital Gains 38.30%

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State Rate 2022

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Combined Rate 2022

  • Guide Through the 1031 Investment Process

    1031: A Guide Through the Tax-Deferred Real Estate Investment Process

    Whether you are unfamiliar with 1031 Exchanges or an investor with extensive experience with tax-deferred investments, this free guide will be a valuable educational and reference tool.

    NOTE: By downloading this free educational guide, you are granting permission to receive periodic emails regarding our property investment opportunities.

    Please note that this guide is intended to familiarize the reader with the basic framework and purpose of a 1031 exchange. It is not intended to provide specific legal advice. Anyone planning on engaging in a 1031 "like-kind" exchange should consult an attorney, tax advisor, and a licensed, bonded, and experienced 1031 exchange intermediary company. * An accredited investor, (a) earned income that exceeded $200,000 (or $300,000 household income) in each of the prior two years, and reasonably expects the same for the current year, OR (b) has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).

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    Free 36-Page Booklet
    Real Estate Investing with the Lessons of 2020: A Collection of 10 timely Articles.

    DOWNLOAD FREE BOOKLET HERE

    This collection of real estate articles is for informational purposes only. NAS Investment Solutions, LLC is not a tax, legal or financial advisor. The information shared in these articles is not intended to be personal advice. Everyone’s situation is different, you should always seek the advice and consultation of your own, independent tax, legal and financial advisors before taking any action with respect to your personal, financial affairs.

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    The ABCs of DSTs: Your guide to understanding fractional interest investing in commercial real estate
    structured as a Delaware Statutory Trust.

    DOWNLOAD FREE GUIDE HERE

    This guide to understanding DSTs is for informational purposes only. NAS Investment Solutions, LLC is not a tax, legal or financial advisor. The information shared in this guides is not intended to be personal advice. Everyone’s situation is different, you should always seek the advice and consultation of your own, independent tax, legal and financial advisors before taking any action with respect to your personal, financial affairs

45/180 Exchange Calculator

45/180 Exchange Calculator

We've provided a calculator to help you estimate your 45-Day Deadline for identifying a 1031 Exchange Replacement property and the 180-Day Deadline to have your exchange transaction completed.

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Capital Gains Tax Rates by State

Capital Gains Tax Rates by State

This is a reference guide to give to you an idea of the top marginal tax rate for your state as of January 2019.

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Frequently Asked Questions

Frequently Asked Questions

Real estate investing and 1031 Exchanges bring a lot of questions. We've put together a list of those asked most frequently. Have a question not on the list? Contact us and we'll be happy to give you an answer.

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