


Delaware Statutory
Trust
The DST investment vehicle is ideal for section 1031 exchanges due to the following characteristics:
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45 day id
period
DST's eliminate much of the hassle of the identification process by offering investors numerous properties that can be identified immediately.
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Excess
Boot
When a replacement property is lesser in value than the previously sold property, the remaining money must be taxed. This leftover money is known as excess boot. With a DST you can invest down to the penny, ensuring that 100% of your exchange funds are invested.
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Backup
Insurance
With a DST the property is already purchased, thus removing any closing risk. This makes a DST a great potential backup in your identification process. Some investors choose to identify a DST as “backup insurance” in the event their other identified properties do not close.

Reasons to Use section 1031
A section 1031 exchange can provide the
following benefits to real estate evestor:
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Exchange Timeline
Section 1031 exchanges have two critical timing rules that must be followed for a successful exchange. These are known as the 45-day identification period and the 180-day exchange period. Failure to adhere to these standards will result in an unsuccessful exchange. There are no exceptions or extensions to these two standards. The standards are more specifically described as follows:

45-Day Identification Period Closing of the sale of the property to be relinquished triggers the 45-day identification period. Upon closing of the sale of the relinquished property, the individual completing the exchange has 45 days to identify the replacement properties. If the individual completing the exchange is relinquishing multiple properties, the 45-day identification period commences upon closing of the sale of the first relinquished property.

180-Day Exchange Period The 180-Day exchange period requires closing on one of the identified properties to be completed by the earlier of:
Property
Identification Rules:

Deferring all Capital
Gains Taxes:
