Chatgpt 建议到的。大家怎么看？ A 1031 exchange allows you to defer capital gains taxes when you sell an investment property and reinvest the proceeds into a "like-kind" replacement property. While the idea of exchanging directly into a "real estate trust fund" might sound appealing for passive investment, it''s not a direct, one-step process for most traditional trust funds like publicly traded REITs (Real Estate Investment Trusts). Here''s why and how it can be achieved, generally involving a two-step process: Why you can''t directly 1031 exchange into a traditional REIT: * "Like-kind" property requirement: The IRS considers shares in a REIT (even though they invest in real estate) as personal property (securities), not real property. For a 1031 exchange to be valid, both the relinquished property (what you sell) and the replacement property (what you buy) must be considered "like-kind" real property. This is where REIT shares fail the test. The workaround: The Delaware Statutory Trust (DST) and the 721 Exchange (UPREIT) This is typically a two-step strategy for investors looking to transition from direct property ownership to a more passive, trust-like investment structure: Step 1: 1031 Exchange into a Delaware Statutory Trust (DST) * What is a DST? A Delaware Statutory Trust is a legal entity that holds title to one or more investment properties. Investors acquire a "beneficial interest" in the trust, which the IRS has ruled (Revenue Ruling 2004-86) qualifies as "like-kind" real property for 1031 exchange purposes. * How it works: * You sell your existing investment property. * The proceeds are held by a Qualified Intermediary (QI). * Within the strict 1031 exchange timelines (45 days to identify, 180 days to close), you identify and invest in a beneficial interest in a pre-packaged DST. * Benefits of DSTs for 1031: * Passive ownership: The DST sponsor manages the property, eliminating landlord responsibilities. * Diversification: You can invest in fractional interests across multiple properties within a DST, or across several DSTs, diversifying your risk. * Access to institutional-grade properties: DSTs often hold larger, higher-quality commercial properties that might be difficult for individual investors to acquire on their own. * Pre-packaged: DSTs are often ready to close quickly, which is crucial for meeting 1031 deadlines. * Maintain tax deferral: By exchanging into a DST, you continue to defer capital gains taxes. Step 2: Transition from DST to a REIT (using a 721 Exchange / UPREIT) * The UPREIT structure: Many REITs are structured as "Umbrella Partnership Real Estate Investment Trusts" (UPREITs). In this structure, the REIT itself is the general partner of an operating partnership (OP), which owns the real estate. * The 721 exchange: After you''ve held your DST interest for some time (often 2-3 years, though there''s no set IRS rule, it''s generally to demonstrate investment intent), the sponsor of the DST (which may be affiliated with a REIT) may offer to convert your DST interests into Operating Partnership (OP) units in their UPREIT. This conversion is a Section 721 exchange, which is also a tax-deferred transaction. * From OP units to REIT shares: These OP units are typically convertible on a one-for-one basis into shares of the publicly traded REIT. At this point, you effectively become a REIT shareholder, having deferred your capital gains all the way from your original property sale. * Important considerations for the 721 exchange: * Loss of future 1031 eligibility: Once you exchange into OP units or convert to REIT shares, you can generally no longer perform future 1031 exchanges with that investment. When you eventually sell your REIT shares, you will be subject to capital gains taxes and depreciation recapture on all previously deferred gains. * Control: You relinquish direct control over the real estate and become a passive investor in the REIT. * Liquidity: Publicly traded REIT shares offer liquidity that direct real estate or even DSTs might not. * Dividend taxation: REIT dividends are generally taxed as ordinary income, which might be higher than the tax treatment of rental income from directly owned properties or DSTs. In summary: You cannot directly 1031 exchange into a traditional real estate trust fund (like a public REIT). However, you can achieve a similar result in a multi-step process: * Perform a 1031 exchange into a Delaware Statutory Trust (DST). This defers your capital gains and allows you to transition to a passive real estate investment. * Later, if offered by the DST sponsor, participate in a 721 exchange (UPREIT) to convert your DST interests into OP units of a REIT. This defers taxes again and gives you exposure to a REIT. Before pursuing this strategy, it is crucial to consult with a qualified tax advisor, attorney, and financial professional. They can help you understand the complexities, ensure compliance with all IRS rules, and determine if this strategy aligns with your specific financial goals and risk tolerance.
The workaround: The Delaware Statutory Trust (DST) and the 721 Exchange (UPREIT) This is typically a two-step strategy for investors looking to transition from direct property ownership to a more passive, trust-like investment structure: Step 1: 1031 Exchange into a Delaware Statutory Trust (DST) * What is a DST? A Delaware Statutory Trust is a legal entity that holds title to one or more investment properties. Investors acquire a "beneficial interest" in the trust, which the IRS has ruled (Revenue Ruling 2004-86) qualifies as "like-kind" real property for 1031 exchange purposes. * How it works: * You sell your existing investment property. * The proceeds are held by a Qualified Intermediary (QI). * Within the strict 1031 exchange timelines (45 days to identify, 180 days to close), you identify and invest in a beneficial interest in a pre-packaged DST. * Benefits of DSTs for 1031: * Passive ownership: The DST sponsor manages the property, eliminating landlord responsibilities. * Diversification: You can invest in fractional interests across multiple properties within a DST, or across several DSTs, diversifying your risk. * Access to institutional-grade properties: DSTs often hold larger, higher-quality commercial properties that might be difficult for individual investors to acquire on their own. * Pre-packaged: DSTs are often ready to close quickly, which is crucial for meeting 1031 deadlines. * Maintain tax deferral: By exchanging into a DST, you continue to defer capital gains taxes. Step 2: Transition from DST to a REIT (using a 721 Exchange / UPREIT) * The UPREIT structure: Many REITs are structured as "Umbrella Partnership Real Estate Investment Trusts" (UPREITs). In this structure, the REIT itself is the general partner of an operating partnership (OP), which owns the real estate. * The 721 exchange: After you''ve held your DST interest for some time (often 2-3 years, though there''s no set IRS rule, it''s generally to demonstrate investment intent), the sponsor of the DST (which may be affiliated with a REIT) may offer to convert your DST interests into Operating Partnership (OP) units in their UPREIT. This conversion is a Section 721 exchange, which is also a tax-deferred transaction. * From OP units to REIT shares: These OP units are typically convertible on a one-for-one basis into shares of the publicly traded REIT. At this point, you effectively become a REIT shareholder, having deferred your capital gains all the way from your original property sale. * Important considerations for the 721 exchange: * Loss of future 1031 eligibility: Once you exchange into OP units or convert to REIT shares, you can generally no longer perform future 1031 exchanges with that investment. When you eventually sell your REIT shares, you will be subject to capital gains taxes and depreciation recapture on all previously deferred gains. * Control: You relinquish direct control over the real estate and become a passive investor in the REIT. * Liquidity: Publicly traded REIT shares offer liquidity that direct real estate or even DSTs might not. * Dividend taxation: REIT dividends are generally taxed as ordinary income, which might be higher than the tax treatment of rental income from directly owned properties or DSTs. In summary: You cannot directly 1031 exchange into a traditional real estate trust fund (like a public REIT). However, you can achieve a similar result in a multi-step process: * Perform a 1031 exchange into a Delaware Statutory Trust (DST). This defers your capital gains and allows you to transition to a passive real estate investment. * Later, if offered by the DST sponsor, participate in a 721 exchange (UPREIT) to convert your DST interests into OP units of a REIT. This defers taxes again and gives you exposure to a REIT. Before pursuing this strategy, it is crucial to consult with a qualified tax advisor, attorney, and financial professional. They can help you understand the complexities, ensure compliance with all IRS rules, and determine if this strategy aligns with your specific financial goals and risk tolerance.
在华人，越是这种有干货的帖子越不火。华人ID只喜欢讨论八卦
做1031的机构会给你填表记录一下就好了 实际closing 不管是你卖房的closing 还是买房的closing 中间间隔日期很宽而且很多调整空间
1031交换 → DST DST → 721交换 → OP单位 → REIT股票 拿走不谢
45天之内找个DST比找个新的投资房可容易太多了
你买的是什么REIT
有哪些REIT ，收费吗？
many DST only has 5% return, how to find better return projects?
6%不错了。哪里找DST?
这是自住房夫妻拥有的