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Updated 3 months ago on . Most recent reply presented by

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Michael Overall
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DST or other mechanism

Michael Overall
Posted

Good day, If an investor has 10 rentals and wanted to over time sell them and put the money tax free from a 1031 toward a large purchase is there a process to do that?  Say they sold the properties over 3 year period and could not sell the rentals together as a portfolio.

Could they put the money from each sale into a DST then use the total to buy a expensive rental property?

Is there a way to use a 1031 over time to sell rentals and use the tax deferred money to buy a larger purchase?

Thanks

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Jon Taylor#2 1031 Exchanges Contributor
  • Pasadena, CA
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Jon Taylor#2 1031 Exchanges Contributor
  • Pasadena, CA
Replied
Quote from @Michael Overall:

Good day, If an investor has 10 rentals and wanted to over time sell them and put the money tax free from a 1031 toward a large purchase is there a process to do that?  Say they sold the properties over 3 year period and could not sell the rentals together as a portfolio.

Could they put the money from each sale into a DST then use the total to buy a expensive rental property?

Is there a way to use a 1031 over time to sell rentals and use the tax deferred money to buy a larger purchase?

Thanks

It would be very difficult to accomplish this. 

The typical DST that an informed investor would seriously consider is only available for 80-120 days.

Happy to chat nuances if you’d like to DM me.

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