All Forum Posts by: Kyle Kadish

@Willson Guimont Dont forget about the qualified intermediary (QI). A crucial element of the exchange, who hold proceeds and records the excahnge for tax purposes. @Dave Foster is a QI who is active on BP.

@Kay March Included in the Private Placement Memorandum (PPM) for each DST will be a report listing comparable properties in the market and their pricing. This is a key tool to knowing if you are buying at a discount or premium. The report should have been compiled by an independent company that is not the sponsor nor their representative.

I also work with my clients to review the sponsor and tenant.

@Rex Celle you might want to explore options using IRC 1033. Unlike 1031, 1033 regards a property through loss, theft, condemnation, eminent domain etc. Gaina can be deferred when proceeds used to repurchase a similar property. Unlike a 1031 exchange, no QI is needed, and timeline provides for more than 180 days.

@Jasmine Lu DSTs come in every shape and size. Many of my clients like multi-family prooerties because they are familiar with that space, generally have a faster depreciation schedule, and sponsor is able to increase NOI - therefore valuation - versus commercial.

It is important to look at the sponsor, property, and tenant. Good luck!

@Keith Nelson What do you plan on doing with the other 30k?

The QI's location does not matter. You will see @Dave Foster activley posting on BP. Other QI's can be found at 1031.org - website for the Federation of Exchange Accommodators.

@Ari Newman whatever portion of the proceeds not used to purchase the replacement property is considerred boot. Based on your example, you could take 10k out of the exchange - only that 10k will be taxable.

@Shawn Ackerman. Identification is 45 days, not 90.

The QI and timeline are in place so you do not need to trade properties. You certainly can have different counter-parties for each transaction in the exchange.

@Sunil Kapoor Congratulations on the pending sale. Too often investors don't explore options until the property has been sold.

Can you please clarify DST: Delaware Statutory Trust (used in 1031) or Deferred Sales Trust (installment)?

Opportunity Zones are attractive, however there are multiple variables depending on the investment. 10 years is a very long timeframe, and I have not yet received an answer about depreciation recapture due today - would that still be due?

I work with both DSTs, and each has their pluses and minuses. All you are attempting to do is match dollars from proceeds to a strategy - you could split the money into each both.

@Anthony Blasko. A property was purchased for 100k. Over life of property, owner fully depreciated. Property is sold for 300k, exchanged, and replacement purchased for 400k. Owner can only depreciate 100k of new property (400k-300k).