New York City 1031 Lawyer Natalia Sishodia Discusses the Different Benefits of a 1031 Exchange Delaware Statutory Trust (DST)
July 12, 2022 at 15:40
New York City 1031 lawyer Natalia Sishodia releases a new article (https://sishodia.com/benefits-of-a-1031-exchange-delaware-statutory-trust-dst/) explaining the different benefits of a 1031 Exchange Delaware Statutory Trust (DST). According to the lawyer, New York real estate investments can be made in many different forms so that investors have more options.
According to the New York City 1031 lawyer, "A real estate investment may also involve many tax considerations, so it is normal for investors to look for options that will limit their tax liability. This is where a 1031 exchange comes in.”
The attorney says that a 1031 exchange can be described as a swap/exchange of property for business or investment purposes. To avoid capital gains, an investor may be able to exchange one type of investment property for another of the same kind.
Attorney Natalia Sishodia also mentions that investors are able to do 1031 exchanges as many times and often as they wish. While investors may find 1031 exchanges beneficial, it is not easy to meet the IRS's requirements. Many investors prefer the Delaware Statutory Trust (DST) because for this reason.
Attorney Sishodia explains that a DST entity is one that has been recognized as a Trust establishment. DST is a term that can be used in all states to describe similar entities, not just in Delaware. DST is commonly used to refer to real estate investments. It is especially popular for 1031 exchanges.
“To benefit from DSTs, investors can sell the original investment property for an interest in a DST and become a fractional investor alongside other owners/investors. By choosing to transfer ownership from a 1031 property into a DST, the investor/property owner is no longer responsible for the burdens of managing the 1031 property,” the real estate attorney says.
Lastly, attorney Natalia Sishodia emphasizes how important it is to seek the help of an experienced attorney when it comes to real estate transactions. Having a skilled real estate attorney may help ease the burden of understanding complex terms from the customer and may guide them into making a more informed decision.
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