Landlords, escape the hassles of toilets and tenants with a tax free sale of your property.
Investing in rental properties is a time-tested strategy, but when you’re ready to get out of the grind of being a landlord and sell your properties, you could face a big tax bill. Here’s an escape route:
Embrace the freedom of leisure and true retirement with a DST 1031 Exchange.
There is a major dilemma facing many Baby Boomers who are invested in real estate and own multiple properties. Their successes in real estate have produced a failure in quality of life. Luckily, there is a solution. Appreciated rental real estate can potentially be exchanged income tax free for real estate owned within a Delaware Statutory Trust (DST). The advantages of this can be dramatic.
What is a DST and why should I consider it?
- "I'm tired of being a landlord."
- "I'm no longer using my property and want to forget about maintaining it."
- "I want to sell, but I don't want another property and DON'T want to pay the taxes."
- "I cringe when I receive a phone call. Is the roof leaking? Tenant moving out again? Midnight plumbing problem?"
Let's start with the problem: a “good problem” to have. Twenty to 40 years ago, you bought rental real estate, maybe a small apartment complex or several rental houses. This can be a great strategy to build wealth for someone in their earlier years of investing. The problem is that you want to be retired now, but you own these now very old houses needing a lot of maintenance.
What you can do is sell your property and diversify geographically by investing into several different DSTs in different areas of the country offered by different DST providers. The income from the sale would be put into into multi-family apartments, medical office buildings, self-storage or retail with postive appreciation.
Besides the diversification and income tax savings opportunities, you probably picked up on the real advantage. You worked hard your whole life, invested money and countless hours into your rentals and now you want to enjoy the fruits of your labor without being tied to your “job” as a landlord of older properties. Your solution to a true retirement could be found in these three letters, DST.
The Advantages of a DST 1031 Tax Free Exchange
- Close in 2-7 days
- No 45 day worries
- The cash flow from DST real estate can be higher than it is from high-maintenance older rentals.
- Free yourself from the pains of being a landlord
- Avoid paying tax on the sale of your property
- Properties already identified to invest in
- You're not responsible for debt
- Set up free consultation with DST adviser
- Coordinate sale of properties
- Close on DST
- Enjoy freedom with continued passive income