1031 EXCHANGES AND DELAWARE STATUTORY TRUSTS A tax-deferred approach to selling your real estate investments

DEFER YOUR CAPITAL GAINS WITH A 1031 EXCHANGE

Are you looking to sell real estate held for investment? The Internal Revenue Code (IRC) offers you one of the most important tax planning strategies to help preserve and grow your investment portfolio. Through a transaction called a 1031 Exchange, you can defer the capital gains taxes that arise from the sale of real estate.

WHAT IS A 1031 EXCHANGE?

Whenever you sell a business or investment property and you make a profit, you generally have to pay capital gains taxes. A 1031 Exchange allows you to sell your real estate property, reinvest the proceeds in “like-kind” real estate, and defer the payment of taxes on that sale. The Internal Revenue Service (IRS) defines likekind as property that is similar in nature or character, regardless of differences in grade, property type or quality.

For investors, a 1031 Exchange offers a range of potential benefits:

• Tax deferral
• Diversification
• Tax-advantaged cash flow
• Wealth preservation