Many investment property owners reach a point where they no longer want or need to own their property. Newly and nearly retired investors may want to eliminate the burden of day-to-day management or those selling a business may no longer need a warehouse or office space. A 1031 UPREIT exchange can offer an attractive, tax-advantaged solution for qualified investment property owners. Unlike a traditional 1031 exchange, an UPREIT exchange entails two tax-deferred exchanges – a 1031 and a 721 exchange. Investors looking to transition from active to passive real estate ownership, diversify their portfolio, and potentially defer significant capital gains taxes are ideal for this strategy.
Multiple Benefits for Investors:
- Defer long-term capital gains and other taxes
- Maintain growth potential of the asset
- Target tax-efficient retirement income potential
- Simplify estate planning by converting property into divisible assets with a stepped-up cost basis for heirs
- Enhanced portfolio diversification – gain exposure to high-quality, institutional-grade real estate
- Periodic liquidity – After a holding period, investors may request to redeem partnership interests for cash, subject to program limitations, available liquidity, and redemption caps
Portfolio built on long-term, secular demand tailwinds: primarily rental housing, industrial and data centers.
The strategy is offered through Blackstone, the world’s largest owner of real estate with a 30+year track record of creating wealth through high-conviction, thematic investing.
If you have questions, feel free to call my office at 773-467-0000, or email mg@gaughanwealthmgt.com.
Farther Finance Advisors, LLC is an SEC-registered Investment Advisor. The material presented here is for informational purposes only and should not be construed as investment, tax, or legal advice. It is not a recommendation of, or an offer to sell or solicitation of an offer to buy, any particular security, strategy or investment product. Please consult your Investment Advisor, Legal Counsel and/or Tax Professional. Please remember that it remains your responsibility to advise Farther Finance Advisors, LLC, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or modify any reasonable restrictions to our investment advisory services. Investing in securities involves risks, including the potential loss of principal. Past performance does not guarantee future results.
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