New York City 1031 Lawyer Natalia Sishodia Explains the Benefits of a 1031 Exchange Delaware Statutory Trust (DST)
New York City 1031 lawyer Natalia Sishodia releases a new article (https://sishodia.com/benefits-of-a-1031-exchange-delaware-statutory-trust-dst/) that explains the benefits of a 1031 Exchange Delaware Statutory Trust (DST). The lawyer mentions that New York real estate investment comes in many forms to give investors a lot of options. There are also many tax considerations involved in a real estate investment and investors usually look for an option where their tax liability is limited.
“In the world of real estate, a 1031 exchange refers to a swap/exchange of property that is held specifically for business or investment purposes,” says the New York City 1031 lawyer. “Per IRS code section 1031, an investor can swap one investment property for another like-kind (tax-deferred transaction) investment property to avoid paying taxes on capital gains on the sale of the property. There is also no limit on how many times or how frequently investors can do 1031 exchanges.”
The lawyer explains that while 1031 exchanges may seem beneficial to many investors, meeting the requirements of the IRS can be difficult. This is where the Delaware Statutory Trust (DST) comes into play.
Attorney Natalia Sishodia explains that a Delaware Statutory Trust (DST) is a legal entity that can be used as a trust for the purpose of conducting business. Even though the name includes Delaware, it is a term that is used to describe a similar entity in any state. DSTs are often used for real estate transactions.
According to attorney Sishodia, “To benefit from DSTs, investors can sell the original investment property for an interest in a DST and become a fractional investor alongside other owners/investors. By choosing to transfer ownership from a 1031 property into a DST, the investor/property owner is no longer responsible for the burdens of managing the 1031 property.”
Furthermore, the real estate lawyer explains that IRS rules can be complicated and hard to understand. Knowing how to take advantage of the IRS code section 1031 by utilizing a DST can be tough, even for a well-versed investor. This is why it is very important to seek the help of an experienced real estate attorney. Having a skilled attorney may be able to help the investor navigate through the tax laws and simplify the process for them.
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