1031 Exchange News: What Real Estate Investors Should Watch Now

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Real estate investors should watch three things in 1031 exchange news right now: whether tax policy proposals affect capital gains deferral, whether IRS timing and reporting rules are becoming more important in a slower or uneven market, and whether backup replacement options such as DSTs or other structures fit their situation before a sale closes.

1031 Exchange vs. Cashing Out: How to Compare Your Options After a Property Sale

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A 1031 exchange usually makes more sense when you want to keep investing and preserve more equity by deferring capital gains and depreciation recapture taxes. Cashing out may be the better fit when liquidity, simplicity, or a change in investment direction matters more than tax deferral.

What Is a 721 Exchange and How Does It Differ From a 1031 Exchange?

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A 721 exchange lets an investment property owner contribute real estate to a REIT operating partnership in exchange for operating partnership units, while a 1031 exchange swaps one investment property for another like-kind property. Both can defer taxes, but they lead to very different ownership, control, liquidity, and planning outcomes.

Can You Invest Cash Alongside 1031 Exchange Proceeds in a DST?

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Yes, it is possible to invest cash alongside 1031 exchange proceeds in a Delaware Statutory Trust (DST). Combining cash with 1031 exchange funds allows investors to meet their financial goals and diversify their investment portfolio by leveraging both deferred tax benefits and additional liquidity to acquire larger or more diverse property interests.

1031 Exchange Timeline: A Step-by-Step Guide From Sale to Closing

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A 1031 Exchange offers a viable method for investors to defer capital gains taxes when selling and purchasing like-kind properties. This process follows a structured timeline: Sell your current property, identify potential replacements within 45 days, and close on one within 180 days to comply with IRS regulations.

How to Plan a 1031 Exchange When Your Property Has a Mortgage

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Successfully planning a 1031 exchange with a mortgaged property involves balancing the remaining mortgage debt while acquiring a replacement property of equal or greater value. This lets you defer capital gains tax while managing existing liabilities. Here's a step-by-step guide to navigating the process.

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Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment.

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