Recently, the White House released the details of President Biden’s proposed $1.8 trillion American Families Plan. The President’s proposal outlines several tax increases intended to help finance parts of this monumental spending—including changes to 1031 exchanges that, if passed, will severely limit the ability of everyday Americans to complete an exchange.

An alternative investment is an investment that does not fall into the traditional asset class of stocks, bonds, and cash. The most common types of alternative investments are precious metals, oil and gas, venture capital, hedge funds, and real estate. An investment made into a DST to complete a 1031 exchange, for example would be considered an alternative investment. 

Two of the more popular investment options available to 1031 exchangers are the triple net (NNN) lease and the Delaware Statutory Trust (DST). At Chicagoland 1031 Exchange, we’re often asked how the two investment approaches compare. To help answer that question we thought a post highlighting some of the similarities and differences would be beneficial.

July 15th is likely a day circled on the calendar of many people looking to complete a 1031 exchange.  When the IRS issued Notice 2020-23, exchange transactions that fell between March 31, 2020 and prior to July 15, 2020 saw their deadline extended to July 15, 2020. In light of the COVID pandemic, the IRS issued this notice to provide extra time to complete an exchange.  Certainly, I think we all were hopeful that by this time the worst of the pandemic would be behind us. Unfortunately, that does not seem to be the case.  

In times of increased risk and uncertainty, it’s smart for a business to put an even sharper focus on its core competencies. At Chicagoland 1031 Exchange, we put the protection of our client’s interests first rather than simply approving every replacement property offering available on the market. If you’re a new client sitting down with us to explore your exchange options, you can be sure that any property we’re showing you has been vetted on a number of different levels. We truly pride ourselves on the amount of due diligence that goes into choosing the Delaware Statutory Trusts (DSTs) that make it onto our platform.

This is the third part of a series on COVID-19. Read Part 1 and Part 2.

COVID-19 continues to bring uncertainty to commercial real estate and 1031 exchanges. Our assessment of risk within the sector is represented in this image.

This is the second part of a series on COVID-19. Read Part 1 here.

As is the case with all economic disruptions, the COVID-19 pandemic will likely vary in its impact on different types of commercial real estate. At times like these, it's important to remember that the impact of disruptions related to Delaware Statutory Trust (DST) depends on the impact to the asset that the DST is invested in. These difficult and uncertain economic times serve as a reminder as to why our firm and our broker dealer spend so much time and energy on property-level and sponsor due diligence.    

Real estate investors who are selling property using a 1031 exchange received some welcome news last week! The IRS has issued new guidance extending the 45-day and 180-day deadline requirements currently defined in IRC section 1031. 

The notice stipulates that anyone with a 45-day identification period or 180-day closing deadline that occurs between April 1st and July 14th will have their deadline extended until July 15th.

This is the first part of a series on COVID-19. 

The COVID–19 pandemic will long be remembered as an event that has forever changed many of the ways we live, socialize, work, and play. The novel coronavirus plays no favorites and is almost boundless in its ability to affect every part of our economy.

Good friends and clients have asked me about how I think the real estate industry will be impacted, first at a macro-level and then more specifically for the 1031 exchange industry and Delaware Statutory Trust investors.

$1.5 Trillion¹. That’s the amount of outstanding student debt being carried today in the U.S., and most of that burden rests on the shoulders of millennials. The impact this financial obligation has on their housing choices, including their ability to move from renter to homeowner, can’t be overstated.