Mar 13, 2017

Posted by in Business tips

Common asked questions about dst 1031

In case you hold a property as a business location or for productive use, then you should know that you have the possibility to find a replacement for it. When it comes to finding a similar property, you should know that the rules refer to the nature of your investment, not to the space. It does not matter the type of investment property you have, you have the possibility to exchange it for any other type of investment space. An office can be exchange for an apartment, a shopping center for a raw land and so on. Any combination you have in mind will probably work with the dst 1031. You have the opportunity to change your investment strategy to fulfill your purpose. But you should keep in mind that you cannot trade notes, shares, certificates of trust or stocks. Also, this method does not allow you to trade your investment property for a personal residence. Make sure you find a replacement property in the same country. Here are some common questions that will help you understand better the process.

What does not qualify for this exchange?

The 1031 exchange allows you swap a property held for productive use, an investment space, or a business. However, you have to pay attention to the tax code specifications, because it excludes some properties, even if they are used in investment purposes. The properties excluded from the list are the notes, interests, bonds and stocks. If you have a property held primary for sale, then you should know that it is also excluded. This means that you have purchased this property with the purpose to sell it, so it does not qualify. Also, you will not be able to swap your primary residence, because it is not used in business, trade or investment. But, if you have a portion of your primary residence you use in this purpose, then this might qualify, you should ask an expert about detailed information.

How do you get started in the exchange?

There is quite simple to get started with the exchange, all you have to do is to call your facilitator. You should make sure you have all the needed information about the parties, because they will need them. You should expect the exchange coordinator to ask you some questions when you will meet them, so you should make sure you have all the needed information at hand.

What should I look for when choosing a facilitator?

When you prepare for the exchange, you should contact a facilitation company. You can find the list of companies that offer these services online. You should make sure that the facilitator you choose does not act as both agents and facilitators. Also, you should avoid hiring real estate agents, attorneys or escrow companies. You should ask them some questions on the procedures they use, and based on what terms they offer assistance. The price is not an important factor when choosing a facilitator, because the fee they ask reflects their services.