Gain a better understanding of 1031 exchanges as well tax strategies, including DSTs.
Section 1031 governing tax-deferred exchanges have been in the Internal Revenue Code since 1921. However, many people are unaware of the concept of a Section 1031 exchange and do not understand the advantage of structuring exchanges when selling investment or business real estate. This material will demonstrate the tax consequence of an exchange compared to a taxable sale and discuss the many benefits of structuring an exchange. You will learn about DSTs, the entity of choice for Section 1031 exchange programs, and how to diversify and reduce risk by acquiring a portfolio of DST replacement property. You will leave with knowledge that may help you build your family wealth through Section 1031 exchanges and diversify to reduce risk. Also, real estate professionals will leave with detailed knowledge they can use to help their clients with future exchanges.Learning Objectives
- You will be able to discuss the technical requirements to qualify for tax deferral under Section 1031 and the many advantages of structuring an exchange.
- You will be able to describe the uses and benefits of a Delaware Statutory Trust, including uses in Section 1031 exchange programs.
- You will be able to recognize the ability to reduce risk by acquiring a diversified Section 1031 replacement property portfolio.
- You will be able to define Section 1031 exchanges.
Agenda
Section 1031 Exchanges- What Is a Section 1031 Tax-Deferred Exchange?
- Why Use a Section 1031 Exchange?
- What Types of Properties Qualify for Section 1031?
- Exchange Myths
- Section 1031 in Detail, Including Like-Kind Properties
- Technical Requirements
- Estimate the Tax Consequences of Exchange vs. Sale
- Exchange Opportunities
- Exchange Strategies, Including Use of a Series of Exchanges to Build Family Wealth Over a Lifetime and Potential Tax Forgiveness on Death
- Status of Bills in Congress
- What Is a Delaware Statutory Trust?
- Advantages of a DST
- Uses of a DST Structure in a Section 1031 Exchange Programs
- Uses of DST Structure for Cash Investors Who May Want to 1031 Exchange on a Future Sale
- Describe the Risk of Asset Concentration - Putting All Your Eggs in One Basket
- Discuss Reduction of Risk by Acquiring a Diversified DST Replacement Property Portfolio
- Example of a Diversified DST Portfolio
Speaker(s)
Louis J. Rogers, Esq.Capital Square
- Founder and CEO of Capital Square Realty Advisors, LLC, a real estate investment and advisory firm that structures real estate investments, including investments using the Delaware Statutory Trust, or DST, structure for Section 1031 exchange investors
- Influential tax, securities, and real estate attorney
- Conducts regular seminars and workshops on Section 1031 exchanges and Delaware statutory trusts
- Serves as a consultant and expert witness on matters relating to Regulation D private placements, REITs, Section 1031 exchanges, TIC and DST programs, real estate funds, FINRA licensed broker-dealers and RIAs
- Active in many bar and real estate security trade groups
- Author of ‘Section 1031 Exchanges: How to Swap Till Ya’ Drop, Building Family Wealth While Minimizing Taxes’, which provides helpful analysis on a range of tax-advantaged real estate investments
- J.D. Degree, University of Virginia School of Law; B.S. Degree, with highest honors, Northeastern University; B.A. Degree, with honors, M.A. Degree, Jurisprudence, Oxford University
- Adjunct faculty at the College of William and Mary and the University of Virginia School of Law
