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Case Studies

Explore our case studies to see our achievements for clients and envision the possibilities for your own success.

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Case Study 1

Transitioning Agricultural Land into Diversified DST Cash Flows 

Our client received a favorable offer on a highly appreciated family property in agricultural production. Desiring to transition into a smaller property and use the balance of his equity to produce predictable cash flow, the client sought to protect his capital and defer taxes but was unfamiliar with 1031 exchanges. The client preferred potential income over capital growth opportunities and was comfortable with moderate risk from his previous experience in agribusiness. 

 Objectives & Needs:
  1. Create diversified cash flows and protect capital. 

  2. Defer significant capital gains taxes on highly appreciated property. 

  3. Secure immediate monthly cash flow for operations. 

  4. Transition to a smaller-scale cattle operation. 

  5. No need to access portfolio capital for liquidity. 

Solution:

Based on the client’s risk tolerance and objectives, Trusted Capital Partners recommended a 1031 exchange split between a smaller ranch property to be acquired and a portfolio of DSTs and energy mineral rights acreage under production suitable for the client. Additionally, DSTs were also identified for backup options to additional acreage identified for possible acquisition during the exchange period. 

 Portfolio Goals: 
  • Capital Gains Tax Deferral: Defer capital gains taxes and depreciation recapture through 1031 exchange, potentially into perpetuity based on current tax code by using one portion of the proceeds to acquire DSTs and a separate ranch property for the balance. 

  • Diversified Portfolio: Provide a select mix of DST real estate and energy acreage suitable for the client balanced across different sectors to reduce concentration risk while increasing sustainability of potential income and capital returns. 

  • Potential for Increased Annual Income: In this client’s case the diversified cash streams offer the potential for an increase in immediate stabilized income over previous investment structure. 

  • Focused Operations: Enable client concentration on cattle operations by replacing the larger property with smaller ranch and augment with stabilized income. 

Trusted Capital Partners is not a certified or legal tax advisor and works collaboratively with clients’ CPAs and legal counsel for strategic planning purposes. Current IRS Sect 1031 and other elements of the tax code are always subject to change. 

 

Securities Disclaimer: Investments in DSTs and energy mineral rights involve risks, including the loss of principal. These investments are not suitable for all investors. Past performance is not indicative of future results. This case study is for illustrative purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Prospective investors must be accredited and should consult with their tax and financial advisors before making any investment decisions. 

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Rental Properties
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Case Study 2

Building a Passive DST Portfolio from Multiple Rental Properties 

Clients owned several rental properties with varying degrees of finance, maintenance requirements, and increasing expenses such as property taxes and insurance. Based on age of the property, increases in taxes, maintenance and time demands, they desired to liquidate their properties individually and over time build a passive investment portfolio of DST commercial real estate properties that would enable more time for personal objectives. They still desired cash flow while their main priority was to protect their capital and were conservative regarding risk. 

Objectives & Needs: 
  1. Protect and incorporate capital into total wealth portfolio. 

  2. Liquidate rental properties gradually as tenant leases and market factors allowed. 

  3. Build a passive investment portfolio maximizing use of all available equity and replace current debt. 

  4. Defer and reduce taxes as much as possible including offsetting ordinary income tax on income streams. 

Solution:

Based on the client’s risk tolerance and objectives, Trusted Capital Partners recommended a phased approach utilizing 1031 exchanges at each property sale and reinvesting the proceeds into individual DST commercial real estate properties. Progressive diversification of the portfolio occurred over time and included replacement debt suitable for the client as part of the exchanges. (Note the typical minimum for investing in a single DST through a 1031 exchange is $100,000 and replacement debt becomes non-recourse in a DST). 

Portfolio Goals: 
  • Reduced Management: Replace rental property ownership and management requirements with passive ownership of DST properties suitable for the client. 

  • Diversified Portfolio: Provide a progressively diversified DST portfolio suitable for the client across different sectors to reduce concentration risk while enhancing stability and return of capital. 

  • Potential for Passive Income: Provide multiple DST investments with the potential for steady, passive income diversified over several sectors. 

  • Overall Tax Efficiency: Defer capital gains and depreciation recapture taxes using 1031 exchanges, potentially in perpetuity based on state of residence and current estate and tax laws. Additionally maximize the tax advantage on ordinary distribution income with continued depreciation and interest expense deductions. 

Trusted Capital Partners is not a certified or legal tax advisor and works collaboratively with clients’ CPAs and legal counsel for strategic planning purposes. Current IRS Sect 1031 and other elements of the tax code are always subject to change. 

 

Securities Disclaimer: Investments in DSTs and energy mineral rights involve risks, including the loss of principal. These investments are not suitable for all investors. Past performance is not indicative of future results. This case study is for illustrative purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Prospective investors must be accredited and should consult with their tax and financial advisors before making any investment decisions. 

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High Tax Burden
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Case Study 3

Property in the Path of Progress 

A client with a small property in the path of local development that had appreciated significantly received an offer to sell but was concerned about the high tax burden in capital gains. Our client did not desire to own additional investment property and had an investment goal of augmenting income while growing capital and giving to charities. The client preferred a balance of income to capital growth opportunity with a relatively low risk threshold. 

Objectives & Needs: 
  1. Protect capital while generating additional monthly income. 

  2. Optimally sell the property. 

  3. Mitigate the high capital gains tax burden. 

  4. Avoid owning additional investment property. 

Solution:

Based on the client’s risk tolerance and objectives, Trusted Capital Partners recommended selling the property and reinvesting the proceeds into a diversified portfolio of DSTs through a 1031 exchange. Suitability of the DSTs included the client’s conservative risk position and with the liquidity of monthly distributions being complementary to her living income and enabling philanthropic giving. 

Portfolio Goals: 
  • Capital Gains Tax Deferral: Defer significant capital gains taxes, depreciation recapture, potentially in perpetuity through 1031 exchanges. 

  • Diversified Portfolio: Provide a diversified DST portfolio across different sectors to reduce concentration risk while providing potential income for giving and capital growth. 

  • Reduced Management: Replace property ownership and management requirements with passive ownership of DST properties suitable for the client. 

Trusted Capital Partners is not a certified or legal tax advisor and works collaboratively with clients’ CPAs and legal counsel for strategic planning purposes. Current IRS Sect 1031 and other elements of the tax code are always subject to change. 

 

Securities Disclaimer: Investments in DSTs and energy mineral rights involve risks, including the loss of principal. These investments are not suitable for all investors. Past performance is not indicative of future results. This case study is for illustrative purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Prospective investors must be accredited and should consult with their tax and financial advisors before making any investment decisions. 

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Elimate Active Management
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Case Study 4

Transitioning from Active Property Management to Estate Planning 

A couple was ready to move away from active management of an investment rental property and had no family members interested in assuming responsibility. The property’s current cash flow was positive but it required constant attention including repairs and was degraded by increasing tax and insurance costs. The couple desired to incorporate the appreciated capital of the property into their estate plan and eventually divide it among heirs, while retaining cash flow in the interim. They also desired to have access to partially liquidate capital in the investment if desired at some point in the future or upon estate passage. They preferred income to growth opportunities with moderate risk that included interest in energy-producing mineral acres. 

Objectives & Needs: 
  1. Incorporate property into long-term planning. 

  2. Transition from active management and reduce their physical and time commitments for improved lifestyle opportunities. 

  3. Retain cash flow and protect capital. 

  4. Enable access to capital liquidity in the future if desired or at estate passage. 

Solution:

Based on the clients’ risk tolerance, income requirements, and objectives, Trusted Capital Partners recommended selling the investment property through a 1031 exchange into a diversified portfolio of DSTs including options to conduct future 721 exchanges, and incorporated sellable interests in energy mineral rights based on the clients’ risk-return profile and income requirements. 

Portfolio Goals: 
  • Reduce Management: Replace property ownership and management requirements with passive ownership of DST properties and energy mineral acreage properties suitable for the client. 

  • Potential for Passive Income: Provide multiple DST investments with the potential for steady, passive income diversified over several sectors. 

  • Provide Potential Capital Liquidation Options: Incorporate future liquidity options through diversified DST portfolio with discretionary 721 exchanges and sellable mineral rights. 

  • Long-Term Estate Planning: Incorporate DST investments in clients' estate plan to simplify potential transfer of assets to heirs. 

Trusted Capital Partners is not a certified or legal tax advisor and works collaboratively with clients’ CPAs and legal counsel for strategic planning purposes. Current IRS Sect 1031 and other elements of the tax code are always subject to change. 

 

Securities Disclaimer: Investments in DSTs and energy mineral rights involve risks, including the loss of principal. These investments are not suitable for all investors. Past performance is not indicative of future results. This case study is for illustrative purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Prospective investors must be accredited and should consult with their tax and financial advisors before making any investment decisions. 

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Member FINRA/SIPC

Investment results and distributions are not guaranteed. This information does not constitute an offering of, nor does it constitute the solicitation of an offer to buy, any securities. This material is not intended to provide any tax, legal, or Investment advice. Securities offered through Saxony Securities, Inc., Member FINRA/SIPC.

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FINRA has a public disclosure program known as BrokerCheck that provides information regarding the disciplinary history of FINRA members and their associated persons. The BrokerCheck Hotline Number is 1-800-289-9999. The FINRA website address is https://brokercheck.finra.org/

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Delaware Statutory Trust
Delaware Statutory Trust
1031 DST Exchange
Capital Gains Deferral

IRC Section 1031, IRC Section 1033, and IRC Section 721 are complex tax codes; therefore, you should consult your tax and legal professional for details regarding your situation. Any information provided on this site is for informational purposes only. Securities are offered through registered representatives of Saxony Securities, Inc., Member FINRA/SIPC. Office of Supervisory Jurisdiction branch located at 11152 South Towne Square, St Louis, MO 63123. Securities are only available in states where registered representatives are registered. Trusted Capital Partners and Saxony Securities, Inc. are separate entities.

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This site is not an offer to sell or a solicitation of an offer to buy securities. All real estate and DST properties contain risk. Please read the full private placement memorandum for a discussion of each property’s business plan and risk factors. There are no guarantees for projected cash flow and/or appreciation. Please do not invest in real estate or DST properties if you cannot afford to lose your entire investment principal. Past performance is not indicative of future results. Any information provided on this site has been prepared from sources believed to be reliable but is not guaranteed by Trusted Capital Partners or Saxony Securities, Inc. and is not a complete summary or statement of all available data necessary for making an investment decision. All photos are representative of the types of properties that Trusted Capital Partners has worked with in the past. Investors will not be purchasing an interest in any of the properties depicted unless otherwise noted.

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Investments in Delaware Statutory Trusts (DST) are speculative and involve substantial investment, real estate, and tax risks. There is no guarantee of cash flow, distributions, or real estate appreciation. Investors could lose some or all of their investment in a DST. Investors are encouraged to review the Confidential Private Placement Memorandum in its entirety and consult with their own legal, tax, financial, and business professionals before investing. Offers can only be made through the Private Placement Memorandum. All properties shown are Regulation D Rule 506c offerings available to accredited investors only (generally defined as having a net worth of greater than 1 million dollars and/or an entity owned entirely of accredited individuals or having gross assets of over 5 million dollars).  Please speak with your CPA and attorney to determine if you and your investing entity are considered accredited before considering an investment.

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