Rental Property Investor · atlanta ga · Member since 2014 · 31 posts · 11 votes
Hello, I am in a situation where without using 1031 I will wipe out almost all gain in paying taxes for practical purposes, I want to get more time then 45 days (takes me on average 6-8 months to find a deal) and so I heard about Capital Gains Tax Solutions, they say that with some added language in the 1031 I can elect to send the proceeds into a DST Deferred Sales Trust AFTER 1031 time expires in order to keep the funds available as if the 1031 was ongoing for months or years till I find a deal I want to buy, I am looking for ANYONE who has used them first of all and 2nd who has used them in this capacity. thanks for any insight. I need to verify they are legitimate as a company and also conceptually on this idea they are proposing.
You might also consider a Monetized Installment Sale. You did not state the amount of your potential sale, and it would have to be of sufficient size for the MIS to make financial sense (generally a sale price of $1 million or more), but the sale price could be smaller if your property has experienced a large amount of appreciation and your gain/ capital gain tax would be relatively large.
If it does pencil out for you, what you get is 93.5% of the net sales proceeds in cash, which you may invest as you wish. You defer your capital gain for 30 years. You are free from any deadlines.