Section 1031 of the internal revenue code provides an effective strategy for deferring the capital gains tax that may arise for your business/investment property sale. By exchanging the property for like-kind real estate, property owners may defer their tax and use all of the proceeds for the purchase of replacement property. Like-kind real estate includes business/investment property, but not the property owner’s primary residence. Section 1031 does not apply to the exchange of stocks or bonds.
Weston Banks Wealth Partners has experience in using a Delaware Statutory Trust (DST). A DST is a separate legal entity created as a trust under Delaware statutory law. The use of a DST helps defer management, taxes and is a syndicated program under the law. For more information on the DST and Section 1031, please give us a call at 919-783-8500.