Cape Investment Management

Section 1031 of the Internal Revenue Code allows an investor to defer the payment of capital gains taxes that may arise from the sale of a business or investment property. By using the proceeds of the sale of such property to purchase “like-kind” real estate, taxes may be deferred, as long as the investor satisfies certain conditions.
Delaware Statutory Trusts (DSTs) are the Partial Ownership Structure of Choice. DSTs permit fractional ownership where multiple investors can share ownership in a single property or a portfolio of properties. Interests in a DST qualify as replacement property as part of an investor’s 1031 exchange transaction. DSTs take decision-making out of the hands of investors and place it into the hands of an experienced sponsor-affiliated trustee. Three Basic Steps for Investors with a Property to Exchange:
Exchanger sells property, known as the relinquished property, and proceeds are escrowed with a Qualified Intermediary (QI).
2. Qualified Intermediary, through a written agreement with the investor, transfers funds for purchase of replacement property.
3. Exchanger receives beneficial interest in a DST.
There are specific timelines and procedures that must be followed to take advantage of the benefits of a 1031 exchange. The entire 1031 exchange timeline can take no longer than 180 days, including a 45-day identification period.
For more information contact Gary Padussis AIF® RFC® RFP® NSSA® at info@capeim.com or (609) 884-8085.
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.