As an investor, you want to make as much money from your portfolio as possible. However, you may want to do more than just buy and sell one-time assets. You may look at utilizing longer and more lucrative investments to gain wealth.
When you add real estate to your portfolio, you may use a DST 1031 exchange to make money. These benefits come with using DST 1031 services to increase your wealth as an investor.
Transfer of Money
With a DST 1031 exchange, you can transfer money from a rental property into your portfolio and use it to invest in other assets to increase your money. A DST 1031 allows you to make a seamless transfer of this money without having to cash out your rental property sale and then deposit into a bank account. Instead, you can bypass your bank account entirely and transfer the rental property sale profit quickly and easily to your investment portfolio.
Deferral of Taxes
Another benefit that comes with using DST 1031 services involves deferring your tax burden until later. When you sell your rental property, for example, you do not have to face an immediate tax bill that can take away from the profits of the sale. Instead, you can take advantage of the tax deferral option that comes with having a DST 1031 available to you.
This tax deferral can be particularly helpful if you need to use the money from the rental property sale for other purposes, such as paying family expenses or sending a child to college. You can put off paying the taxes for several months or longer, which can give you time to save up the money that you owe or derive the amount from another source.
Finally, a DST 1031 can allow you to access what is known as trapped equity in your real estate and use it as a source of monthly income. You do not necessarily have to rely solely on the income that you have coming in from a rental property or dividends from assets in your portfolio. You can use the trapped income from your DST 1031 to generate monthly income on which you can live and support your family or reinvest in your portfolio.
These benefits go along with using a DST 1031 to grow your wealth. You can transfer rental property sale profits, defer taxes and use equity for income. Contact a DST 1031 service for more information.Share