Estimating the §1031 Tax Deferreal on the Sale of Investment Property
An Exchanger should always consult with competent independent legal and/or tax advisors to determine the applicability of any IRC §1031 tax deferred exchange benefits. The gain, not the profit or equity, from the transfer of investment property may be subject to federal and state capital gain taxes and federal taxes on the gain due to the depreciation taken on the property. Remember, it is possible to have little or no equity in the investment property transferred and still owe taxes. NexTrend Securities does not give tax advice you must consult with your Tax advisors.
This is an educational guide to estimate the potential capital gain owed on the transfer of property:
Enter percentages as whole numbers with or without decimals such as 15 or 15.25 for 15% or 15 1/4 % etc. Use tab key to select next field.
NexTrend Securities, Inc. cannot provide tax advice or any advice regarding specific tax consequences. Investors considering an IRC §1031 tax deferred exchange should seek the counsel of their accountant and attorney to obtain professional and legal advice.
*The Federal capital gain tax rate is generally 15% or 20% depending upon taxable income. Single taxpayers with over $425,000 in taxable income and taxpayers filing as married filing jointly with over $479,000 in taxable income pay the higher 20% capital gain tax rate.
**The 3.8% Medicare surtax only applies to "net investment income" as defined in IRC §1411.
For Accredited Investors Only. This information has been prepared for educational purposes only and does not constitute an offer to purchase or sell any security. This material is not to be interpreted as tax or legal advice.
Specific Risks Associated with Investing in a 1031 Delaware Statutory Trust (DST) include but are not limited to substantial fees and expenses, inability of the DST to actively manage the property, strict timing limitations and risk of not meeting requirements for 1031 exchange tax treatment, and other negative tax consequences. There are risks associated with investing in real estate and DST properties including loss of entire investment principal, declining market values, tenant vacancies, lack of liquidity with restrictions on ownership and transfer. Potential cash flow, returns and appreciation are not guaranteed and could be substantially lower than anticipated. Diversification does not guarantee profits or protection against losses.
Additional risks and considerations related to investing in 1031 DST commercial real estate include, but are not limited to, general real estate risks, financing risks, tax risks, interest rate risk, management risks, operating risk, market risks such as supply and demand, changing market demographics, tenant turnover, tenants inability to pay rent, acts of God such as earthquakes, floods or other uninsured losses. There are also potential risks relating to the trust structure and the potential for adverse changes in laws and regulations. NexTrend Securities, Inc. is not a tax advisor and does not provide tax advice.
General Risks Associated with Investments in Private Placements Offerings include but are not limited to the fact that private placement offerings are not suitable for all investors, are speculative, illiquid, involve a high degree of risk, and include the possibility of complete loss of your investment. For more information on 1031 DST real estate and private placements please go to https://nextrend1031.com.