Hotel Retirement Solution: 1031 Exchange into DSTs

Hotel owners frequently contact Kay Properties and Investments looking for a retirement solution. They have labored for decades building up their business and now it is time to sell the property and retire. However, optimism is often replaced by anxiety when their CPA calculates the tax consequence to discover the standard of living hoped for may not be feasible.

Kay Properties and Investments works with hotel owners to help achieve their retirement goals through a 1031 exchange into a portfolio of DST properties specifically tailored with the following objectives in mind:

  • Defer Tax Consequence: 1031 Exchange allows the hotel owner to potentially defer capital gains taxes, depreciation recapture tax, and others. DST properties qualify for pass-through tax treatment to the investor, including passive losses like depreciation. Additionally, heirs will receive a step up in basis upon the passing of the original owner, just like other real estate ownership. Investors should always discuss their unique tax considerations with a tax professional prior to investing.
  • Potential for Passive Income: Delaware Statutory Trust properties are truly passive. There are no oversight responsibilities or management obligations whatsoever.
  • Non-recourse debt: No need to apply for a loan, nor does it show up on credit reports. DST debt is held on the property alone. If the hotel owner does not need to take on debt, Kay Properties has debt-free DST options as well.
  • Diversification*: Many hotel owners like DSTs because of the ability diversify their investment into various DST properties. Why risk years of hard work and late nights by parking your entire wealth in a single property? Kay Properties develops tailored portfolios of DST properties diversified by asset type and asset class throughout the country. Diversification does not guarantee profits or protect against losses.
  • Legacy Planning:  DST shares are more easily divisible between multiple heirs than a single asset. This way, heirs are much less likely to be forced to make stressful and often controversial decisions of whether they should liquidate a property or not once inherited.

If you would like to speak to a licensed professional at Kay Properties and Investment with experience working with hotel owners, contact the information below to receive your free consultation.

Contact Kay Properties and Investments at:

1-(855) 899-4597

*Diversification does not guarantee profits or protect against losses.

About Kay Properties and

Kay Properties is a national Delaware Statutory Trust (DST) investment firm. The platform provides access to the marketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients, independent advice on DST sponsor companies, full due diligence and vetting on each DST (typically 20-40 DSTs) and a DST secondary market.  Kay Properties team members collectively have over 150 years of real estate experience, are licensed in all 50 states, and have participated in over $30 Billion of DST 1031 investments.

This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing.  IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation.  There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed.

Nothing contained on this website constitutes tax, legal, insurance or investment advice, nor does it constitute a solicitation or an offer to buy or sell any security or other financial instrument. Securities offered through FNEX Capital, member FINRASIPC.

Email this to someoneTweet about this on TwitterShare on FacebookShare on LinkedIn