Deferred Exchange

A deferred exchange occurs when a property with a capital gain is sold and replaced with a like-kind property using a 1031 exchange to defer the payment of any capital gains tax owed.

DST (Delaware Statutory Trust)

A Delaware Statutory Trust (DST) is a separate legal entity under Delaware law. When structured for a 1031 exchange, the Trust owns the property and each investor is entitled to receive a pro rate share of property income and depreciation…

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Defer Capital Gains

A transaction or situation which causes the taxes on the profits of gains made on a capital investment to be deferred to a later date.

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.