By: Alex Madden, Vice President, Kay Properties and Investments, LLC
A Kay Properties and Investments investor had been managing her 9-unit apartment building for most of her life. After purchasing the building over 25+ years prior for $30,000 she sold the building for $1,300,000. Vice President Alex Madden explained: “Our Client was most interested in getting out of active management and deferring her substantial capital gains taxes. She was able to utilize a 1031 tax deferred exchange and diversify* into four 1031 DST properties, in four different asset classes, with four different 1031 DST sponsors and in four regions of the country.”
Senior Vice President Chay Lapin went on to say “Through extensive discussions with the Client we were able to help her affect the lifestyle change she wanted, while avoiding the significant tax consequence that can by triggered through the sale of a property. Using the 1031 exchange and Delaware Statutory Trust our client was able to move from 25+ years of active management to 1031 DSTs and defer a significant tax liability while diversifying her equity into multiple DST offerings.”*Diversification does not guarantee profits or protect against losses.