Country Village Rentals and Real Estate Weblog

Asking:  $24,000,000

Almost two miles long with five miles of shoreline, this 230 acre island paradise is located just a half mile off the southeast coast of St. Thomas.

Thatch Cay is currently divided into two 57 acre parcels and one 115 acre parcel, each zoned for residential use. The island offers surf crashing at the foot of dramatic cliffs, a white sand beach, scenic strolls, prevailing breezes and views of nearby islands. The island rises to almost 500 ft. on its eastern peak. On the south side, gentle slopes face the city lights of St. Thomas.

The surrounding crysal clear waters provide some of the best swimming, sailboarding, scuba diving, snorkeling and deep sea fishing. The island hosts a variety of wildlife.

Just 5 minutes by boat from the marina facilities of St. Thomas which offers easy access via ferry service, an international airport and private jetport. St. Thomas boasts historical and cultural sites, golfing, fine dining and renowned nightlife.

In the 18th Century, Thatch Cay was part of a Dutch plantation; in the 19th Century it served as home to a small fishing village and since the early part of the 20th Century the cay has been left entirely to Mother Nature.

Ideal for a secluded tropical retreat, a family compoung or a world-class low density residential development.

What is a 1031 Exchange?

A 1031 Exchange is a transaction in which a taxpayer is allowed to sell one property to buy another without recognizing, but instead deferring taxable income on the sale.  This can be done through a simultaneous or delayed 1031 Exchange.  The transaction is aptly named after the federal tax law allowing it, Section 1031 of the Internal Revenue Code.  It is the best strategy for the deferral of capital gains and depreciation recapture tax that would ordinarily arise from the sale of highly appreciated real estate.

A successful exchange results in the taxpayer being able to utilize 100% of the proceeds from the sale of property to purchase a new property, thereby deferring capital gains and recapture tax on the relinquished property.

Real estate owners may accomplish several objectives by using a 1031 Exchange, including greater leverage, diversification by asset class and geographic location, improved cash flow, and/or property consolidation.

How does a 1031 Exchange work? (more…)