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Estate Planning Strategies

Permanently defer taxes
with a step up in cost basis

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Smiling Family

Permanently Defer Tax on Real Estate

Step Up In Cost Basis

Sale Price

Capital Gains

&

Depreciation

Purchase price (cost basis)

Business Woman with Laptop

Upon the passing of her parents, Jane would receive a "stepped-up cost basis" reflecting the then-current market value of the property.  If she sold the property at the time of inheritance no capital gains would be recognized.

Happy Couple

Arthur and Linda would like to minimize their family tax exposure on the sale of real estate.

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A 1031 exchange can defer taxes and ultimately provide a stepped-up cost basis for their daughter Jane.

Step Up In Cost Basis

Empty Factory

To remedy the situation, they sold their industrial property...

...and completed a 1031, purchasing shares of a Delaware Statutory Trust

Fractional Shares

for Multiple Beneficiaries

Dancing Couple

Marty and Sally owned an industrial warehouse that had appreciated in value.  They were concerned that their two children might have differing opinions on what to do with the property upon their passing and wanted to simplify their options.  

Young Business Colleagues

Each sibling was assigned DST shares as beneficiaries.  Upon the passing of their parents, they will continue to own their proportionate shares until the dissolution of the DST.  At that time, they could each go their separate ways with their cash proceeds.

Real Estate & Capital Transitions

1031 Exchange Basics

Fractional Real Estate

DST Property Types and Debt

DST Estate Planning Strategies

Qualified Opportunity Funds

ESG/Sustainable Investing

Clean Energy Tax Credits

Pass Through Tax Benefits

Learn and Connect

Tax Advantaged Advisors

Education Center

Become an AWM Partner

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All securities offered through Patrick Capital Markets, LLC Member FINRA / SIPC.  Investors should review any transaction and the various tax deferred and tax exclusion strategies and structures available with their tax and legal advisors.  Alternative Wealth Management does not provide tax or legal advice to individual investors.

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The information provided in this website is for educational purposes only and does not represent an offer to purchase, acquire or engage in any transactions.  Securities discussed above would only be purchased through Private Placement Memorandum.  Securities and strategies discussed herein may be speculative and entail a high degree of risk.  Investments in Private Placements are suitable only for investors who have adequate means of providing for current needs and personal contingencies, can bear the economic risk of the investment, and have no need for liquidity.

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The following is a brief overview of some of the risks that Alternative Wealth Management deems appropriate to highlight.  It is not and is not intended to be, a summary of all the risks associated with the strategies and securities discussed herein.

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Delaware Statutory Trusts (DSTs) - DSTs are regulation D private placements that offer fractional ownership of real estate.  Investors should understand the risk factors of participating in such investments as outlined in this section in addition to the private placement memorandum; in particular real estate risks, liquidity risk, change of tax status among others.

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Real Estate Risks – Real estate risks include those of specific property issues, the economy of the geographic locations, environmental hazards, the risk of loss of tenant and other factors typically associated with a real estate investment.

 

​Change of Tax Status - IRS tax rule changes may alter or eliminate certain benefits related to current strategies.

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Performance Expectations – There is no guarantee that the investment and tax strategies discussed will elicit the optimal results.  Each taxpayer is unique.  Past performance or the results of other individuals is never an assurance of future results.

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Reduction or Elimination of Cash Flow – Investments in real estate may experience temporary or permanent disruption of cash available for distributions, such as, from a reduction in tenant payments or if the property sustains substantial damage.

 

Potential for Property Value Loss - All real estate investments have the potential to lose value during the life of the investments.

 

Impact of Fees/Expenses – There may be substantial fees paid to Sponsors, affiliates, and others, related to the strategies and securities discussed herein and such fees typically are paid regardless of the performance of the investment or strategy you seek.    Such fees and costs may impact investor returns and may outweigh any anticipated tax benefits.

 

Liquidity Risk – Private Placements are il-liquid with no secondary market.  You should consider these long-term investments regardless of your circumstances.

 

Sponsor Risk – There are substantial conflicts of interest between investors and the self-interest of the Sponsor, Master Tenant, affiliate companies and others who will profit from the private placement for their services regardless of their results.  Their decisions related to the offering and operation of the private placement is critical to the success of the private placement and the return of your investment.  The offering sponsor could take actions that might not be in the best interests of the shareholders of the private placement.  Those types of conflicts of interest could influence the decisions in the management and operation of the private placement that are contrary to the best interests of the Investors.  Investors will have no control over their decisions.

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