1031 Exchange -
Real Property Ownership
Whether you own commercial property through your business, you’re a landlord, or a farmer, retiring can be challenging. Holding on to the property means personal liabilities and potential issues with the tenant or management company.
Even though many would love to sell their property to avoid the toilets, tenants, and trash, they don’t.
Typically, there are 3 reasons why owners don't sell their properties even though they would like to:
A Delaware Statutory Trust can eliminate taxes, provide tax sheltered income, and a stepped-up basis to your beneficiaries.
A 90-second video goes over the basics.
1. Taxes
Selling real property means paying Capital Gains Taxes, Depreciation Recapture Taxes, and Net Investment Income Taxes. That can range from 24% to 38% depending upon your state.
2. Income
Generating income to last a 30-to-40-year retirement can be a challenge, especially if you gave 25% of your money away and your income is no longer tax sheltered.
3. Kids
Comprehensive Estate Planning is essential to pass your assets quickly and efficiently. A stepped-up cost basis is important to avoid the big tax hit and give your beneficiaries the full value of what you’ve worked so hard to create.
