Eric Hegarty, leveraging over a decade of expertise as a multifamily real estate agent, is dedicated to empowering clients across the Phoenix Valley with tailored solutions for properties ranging from 2 to 50 units. His mission is to deliver unparalleled service, strategic insights, and unwavering commitment to excellence, guiding investors and property owners towards informed decisions and prosperous outcomes. With a steadfast focus on integrity, professionalism, and personalized attention, Eric strives to exceed expectations, foster lasting relationships, and contribute to the dynamic growth and success of our clients in the multifamily real estate market.
1031 Exchanges are a great option to defer capitol gains from the sale of your apartment, however the challenge can be finding a replacement property in time.
A Deferred Sales Trust (DST) is a legal strategy used in real estate transactions to defer capital gains taxes on the sale of appreciated property. When a property owner sells a piece of real estate, they typically owe capital gains tax on the profit made from the sale. However, with a Deferred Sales Trust, instead of receiving the proceeds directly from the sale, the seller transfers the property to a trust. The trust then sells the property to the buyer, and the seller receives payments over time from the trust, rather than a lump sum.
The key benefit of a Deferred Sales Trust is that it allows the seller to defer paying capital gains tax on the sale proceeds until they receive payments from the trust. This can be advantageous for individuals looking to reduce their tax liability, especially if they are selling a property with significant appreciation.
It's important to note that a Deferred Sales Trust must comply with strict IRS regulations to be valid, and it typically requires the involvement of legal and financial professionals to set up properly. Additionally, while a Deferred Sales Trust can provide tax deferral benefits, it may not be suitable for every seller, and it's essential to carefully consider the potential risks and benefits before utilizing this strategy.