Frequently asked questions

A 1031 exchange lets you defer capital gains tax when selling investment property by reinvesting the proceeds into "like-kind" replacement property of equal or greater value, following IRS rules and deadlines. It's named for Section 1031 of the Internal Revenue Code.

You have 45 calendar days from your sale's closing to formally identify replacement property, and 180 calendar days to close on it. The clocks run concurrently and have no extensions for weekends or holidays.

For real estate, like-kind is broad — nearly any investment or business real property can be exchanged for another, including an apartment building for retail, land, or a fractional DST interest.

Boot is any non-like-kind value you receive — leftover cash or a reduction in debt. Boot is taxable. To fully defer, reinvest all net proceeds and replace debt with equal or greater debt.

The depreciation you deducted over the years is "recaptured" at a rate up to 25% when you sell. A 1031 exchange defers recapture along with capital gains tax.

A DST is a legal entity that holds title to income-producing real estate. You own a beneficial interest that the IRS treats as like-kind property — so it qualifies as 1031 replacement property while being completely passive. Learn more

Generally, someone with a net worth over $1 million excluding their primary residence, or income over $200,000 ($300,000 jointly) in each of the last two years. DST and private fund offerings are limited to accredited investors.

No. Distributions depend on the performance of the underlying real estate and are not guaranteed. DSTs are illiquid and carry risk, including potential loss of principal.

Usually 5 to 10 years, until the sponsor sells the underlying property. DSTs are designed for patient, long-term capital, not short-term liquidity needs.

A 721 exchange lets you contribute property or a DST interest to a REIT's operating partnership for OP units — deferring tax while gaining diversification and potential liquidity. Learn more

Under current law, heirs may receive a step-up in cost basis to fair market value at death, potentially eliminating the deferred capital gains entirely — sometimes called "swap till you drop."

Initial consultations and our suitability and risk analysis are provided at no charge. Any compensation tied to specific investments is disclosed clearly before you commit. Contact us for details specific to your situation.

Always. We coordinate directly with your existing CPA, attorney, and qualified intermediary so your exchange and tax reporting stay aligned.