Common Questions

What if we have a loan against the property?

To qualify for full tax deferral from a sale in a 1031 exchange, investors must replace the exact amount of debt on the relinquished property with new debt or cash equaling the same amount.

Not all DST sponsors can accommodate this IRS requirement, fortunately we can help. You do not need to secure additional financing or bring cash to closing. We can structure your offer to match the ratio of debt/equity of your sold property so that you receive a full deferral of taxes.

Can we do a partial exchange?

Yes, we can work with your Qualified Intermediary to make sure you stay within the IRS guidelines. If you're not familiar, a partial exchange is when you distribute the sale proceeds across several properties or only use a portion of the sale for exchange.

Does land qualify for exchange?

Yes, a DST is a popular way to turn unproductive land into a steady income stream. However, if you purchased land and successfully subdivided the parcel to be sold to developers, you may not qualify for a full tax deferral. You should consult an experienced accountant and/or qualified intermediary for guidance.

What if the property is held in an LLC, Corp or Trust?

That is not a problem for us, you can still make a successful exchange into a Von Alyn DST. However, title must stay the same as the dispositioned property. For example, if the property being sold is currently in an S-Corp, your partnership with us will also be titled as an S-Corp.

And if you have a multi-member LLC, not all members need to move forward with a 1031 exchange, they can simply cash-out their share and pay the appropriate taxes. The remaining members can move forward with a new LLC for the tax deferred exchange. We work directly with your Qualified Intermediary to make sure you stay in compliance.

Does 'like-kind' mean we have to invest in the same type of property?

No, 'like-kind' implies a broad range of real estate qualifies as long as it’s held for productive use in a trade, business or investment. Meaning, you can sell farm land to purchase an apartment complex and still qualify for tax deferral.

Do we qualify if the dispositioned property is in another state/country?

You can exchange property across state lines without an issue, however, if the property being sold is in another country you will not qualify for the 1031 tax deferral.

Does a second/vacation home qualify?

Maybe. Have you owned the home for at least two years? Has the home been rented out for more than two weeks a year, every year? Have you limited your use of the home to not more than 14 days or 10% of the number of days during the 12-month period that the vacation home is rented at a fair rental value? We advise you to consult an experienced accountant or Qualified Intermediary to be certain.

If our property sells for $249,000, can we still qualify for a Von Alyn DST?

$250,000 is our minimum and you cannot bring money to settlement. However, if you have multiple properties being sold within the 180 day window and the total is greater than our minimum, you will be able to successfully partner with Von Alyn on a DST offering.

Do we need to bring money to settlement?

No, any costs associated with the exchange are subtracted from the net investment amount sent to us from your Qualified Intermediary. You pay us nothing directly. All upfront DST fees and the final net investment amount are clearly reflected in the written offer and closing statement. Please note, you are responsible for any costs associated with the services of your Qualified Intermediary.

If you have general questions, you can email us: support (at) vonalyn (dot) com. For specific information, click here to schedule a call with our 1031 specialist. Existing investors can login here for additional access.