Facts about 1031 Exchange That Might be Helpful


Investments is about growing your portfolio and your gains. However, this is often difficult because of the taxes that the government charges on investment gains this is because at times the taxes are on the high end and they take a significant portion of the gains. Thanks to 1031 exchange that allows investors to postpone paying those taxes for a short period. Therefore, it is imperative that you know how 1031 exchange works.

Properties that can be exchange at Delaware statutory trust

 One of the 1031Gateway investment properties that you need to know about is communal properties. At 1031 gateway properties that are owned by married couples that is a husband and a wife, each spouse has an equal right to their claim. However, for a property to be treated that way, it is supposed to be acquired during their marriage. This means that if one spouse inherits something or gets a gift before he or she is gets married, the other spouse has no right to claim any gains from that capital.

 At Delaware, statutory trust it is possible to improve your properties such as lands and buildings. this is done to add value so that your properties at least make good returns. However, the costs incurred to improve the property are added to the original value of the property. Nevertheless, for properties that depreciates with time, the cost incurred for adding value to the property also depreciates. The vice versa does not happen to properties that appreciates with time such a land.  Purchase 1031 exchange properties for sale here!

At 1031 gateway, the properties that are exchangeable are not only buildings and lands. Personal collectibles such as art, coins and or other intellectual properties are also exchangeable. However, you need to know that they are taxed a bit higher than other assets. For more facts and info about 1031 Exchange, Visit https://www.youtube.com/watch?v=6LIAEfAIwPg.

 It is also possible to include a third party in the exchange to act a facilitator. The facilitator is commonly referred to as the accommodator.  The accommodator is not supposed to claim any compensation but he or she is paid a service fee for facilitating the exchange.


It is not possible to directly exchange businesses under 1031 exchange. However, you can exchange assets under the name of the business. this is only possible if you exchange the assets on an asset to asset ground. This is done under the mixed properties exchange.

There are other properties that are prohibited to be exchanged in 1031 exchange section. The properties are mostly constituted of personal belongings that are not meant for commercial gains such as luxuries yachts, holiday homes and cars.