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    Inland Sponsor Spotlight

    Dan Wagner, of the Inland Real Estate Group, LLC, a Platinum Sponsor of TCF, from left, Aubrey Kobernus, of Realtor Land Institute, Clayton Harris III, executive director of the Illinois International Port District, and Barbara Clark, past TCF president.

    The Inland Real Estate Group, LLC is the newest Chicago Farmers’ Platinum Sponsor. During the November 18, 2019, TCF meeting, Dan Wagner, Senior Vice President, Government Relations, provided a brief overview of the firm, which has offices in Oak Brook, Chicago, and Atlanta, Georgia.

    Dan explained that the group was founded 52 years ago by four Chicago public school teachers. Over the years it has purchased $47 billion in commercial real estate. In his discussion he focused on the Delaware statutory trust (DST) structure that is used in Section 1031 exchanges. Inland Private Capital Corporation’s counsel worked with the Internal Revenue Service to educate them on the DST structure and Revenue Ruling 2004-86 was issued as a result of the collaboration. Section 1031 of the Internal Revenue Code can provide a strategy for deferring capital gains tax that may arise from the sale of a business or investment real property.

    With a DST, a person could own farmland, an apartment building or another kind of rental property, sell it and then enter into a Section 1031 like-kind real estate exchange through a fractional ownership of a large condominium complex, for example.

    The DST structure allows the investor to continue to exchange real properties until the investor’s death. Upon the death of the investor, the heirs may receive a “step-up” in basis to avoid initial capital gains tax.

    “I have just skimmed the surface of the 1031 Delaware Statutory Trust, but I would be happy to discuss it at length with anyone,” said Dan.

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