Leveraged Delaware Statutory Trust To Replace Debt

If you are in the process of selling a rental property and you have debt remaining on the property, then it must be replaced in your 1031 exchange. If you are looking to acquire a replacement property in your 1031 exchange, or looking for a Leveraged Delaware Statutory Trust portfolio to replace the debt in your exchange, this article will help clarify the IRS rules. The IRS states that the debt remaining on your relinquished is considered boot, and must be replaced in order to successfully defer the capital gains tax in your 1031 exchange. For example, if you sell a $500,000 property with $250,000 of debt, the IRS states that you must replace your relinquished property of equal or greater value. This means you must find a property that is $500,000 or more, and you must get a loan on the replacement property for $250,000 or more. If you can meet these rules set by the IRS in a 1031 exchange, then you can successfully defer your capital gains tax. In this real estate market, finding replacement properties has become a challenging task with the low inventory and inflated prices. Many real estate investors are looking for 1031 exchange investment alternatives to defer their capital gains tax. Most people are not aware of the 1031 exchange DST and how it can help defer their capital gains tax. Many of our clients do not, or cannot, find replacement properties or do not want to continue to be a landlord anymore. They may have heard of the 1031 exchange Delaware Statutory Trust (DST) but have many questions. One of the questions that comes up in almost every conversation is how can I replace the debt in my 1031 exchange with a DST? A 1031 exchange DST can be a great way to defer your capital gains tax, receive passive monthly income, and allows you to participate in the appreciation of the Delaware Statutory Trust properties. We will explain in more detail how you can replace your debt in your 1031 exchange with a leveraged DST portfolio. After reading this Leveraged Delaware Statutory Trust article you might have more questions. We would be more than happy to provide you with a free Leveraged Delaware Statutory Trust consolation to help answer any further questions you may have. Simple fill out the form below, or call our office directly - 805-583-2720 and we will assist you in a timely manner. If you would like to visit the Winthco Wealth Management office in person, you can do so at - 1871 Tapo St. Simi Valley California 93063.

Leveraged Delaware Statutory Trust Portfolios Can Replace Your Debt In Your 1031 Exchange

We work with many different Delaware Statutory Trust companies to help our clients successfully defer their capital gains tax in their 1031 exchange with a DST. Some of the DST companies we work with have Leveraged Delaware Statutory Trust portfolios, and some DST companies we work with a debt free only DST companies. What does Leveraged Delaware Statutory Trust mean? A Leveraged Delaware Statutory Trust portfolio means the DST company has purchased either a single investment property, or multiple properties, and has financed these properties. This means that a Leveraged Delaware Statutory Trust portfolio could be $200m total beneficial interest, with $100m of equity available. This means that this Leveraged Delaware Statutory Trust portfolio is leveraged at 50%. If you are selling a property similar to the example we explained above, then you would go into the Delaware Statutory Trust portfolio with the exact debt to equity ratio of 50%. In our example, you would be investing $500,000 into a Leveraged Delaware Statutory Trust portfolio. $250,000 would be in the form of equity. This is the amount that you would be paid your passive monthly income in a Leveraged Delaware Statutory Trust. The other $250,000 would be invested in the form of debt on the residing Leveraged Delaware Statutory Trust. You would not be paid any passive monthly income on the $250,000 in the Leveraged Delaware Statutory Trust, but it would satisfy the needs of the IRS in your 1031 exchange. Some Leveraged Delaware Statutory Trust portfolios could be leveraged at 42%, 54%, or even 80%+. If your debt to equity ratio does not line up exactly how a Leveraged Delaware Statutory Trust is presented, then we will do the calculations to determine the exact amount to of debt to equity that is required to replace the debt in your 1031 exchange. Our role at Winthco Wealth Management is to find a Leveraged Delaware Statutory Trust to satisfies the needs in your 1031 exchange. Since we work with many different DST companies, we will find the appropriate Leveraged Delaware Statutory Trust portfolio for you, do the calculations for your debt to equity, and handle all of the necessary paperwork for you. If you have more questions about Leveraged Delaware Statutory Trust, or would like to schedule a free DST consultation,  please fill out the form below or call our office directly at 805-583-2720. If you would like to visit the Winthco Wealth Management office in person, you can do so at - 1871 Tapo St. Simi Valley California 93063.

Types Of Leveraged Delaware Statutory Trust Portfolio For Your 1031 Exchange

There are many different types of Leveraged Delaware Statutory Trust available. What is the best Leveraged Delaware Statutory Trust for your 1031 exchange? There really isn't the best Leveraged Delaware Statutory Trust for your 1031 exchange, rather it is more important to look at the leverage in a dst portfolio when you need to replace your debt in a 1031 exchange. There are many different asset classes, and different Leveraged Delaware Statutory Trust ratios in a dst portfolio. The most important factor when looking to replace debt in a 1031 exchange, is finding a Leveraged Delaware Statutory Trust portfolio. As long as there is leverage in a DST portfolio, we handle all the calculations to determine your fractional ownership in a Leveraged Delaware Statutory Trust portfolio. If you have a highly leveraged property that you are selling, and looking to do a 1031 exchange, we can help you replace the debt in your 1031 exchange. If you are selling an investment property for $500,000 but there is a loan outstanding for $400,000, then you are leveraged at 80%. Even though you have a lower tax liability, you may still want to defer your capital gains tax. We have access to highly Leveraged Delaware Statutory Trust portfolios called zero coupon DST portfolios. A Zero coupon Leveraged Delaware Statutory Trust portfolio is typically leveraged at 80% or more. A zero coupon highly Leveraged Delaware Statutory Trust portfolio allows you to replace the debt in your 1031 exchange, however it does not provide any income. The zero coupon leveraged dst portfolio does allow you to participate in the appreciation of the property. In our example, $400,000 would be invested into the zero coupon highly leveraged dst portfolio, and $100,000 could be invested into a debt free dst portfolio that will provide you the passive monthly income. We hope this article on Leveraged Delaware Statutory Trust answers some of your questions. If you still have questions, or would like to schedule a free dst consolation, please fill out the form below or call our office directly 805-583-2720 and we will help answer any further questions you have! If you would like to visit the Winthco Wealth Management office in person to discuss the Delaware Statutory Trust In California, you can do so at - 1871 Tapo St. Simi Valley California 93063.

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