Most 1031 exchanges are set up as straight property-to-property exchanges. But are there other alternatives to this typical set up?
Alternative Options
The short answer is yes. In a 1031 exchange, you can purchase any real property in the USA that will be held for either productive use in a trade or business or for investment. That includes traditional brick and mortar properties (broad spectrum of land and buildings and other real property interests) as well as securitized real estate investments such as Tenant-In-Common (TIC) deals, Delaware Statutory Trust (DST) and even some oil and gas investments (a working interest is considered a real property interest whereas a royalty interest is not).
TIC & DST Investments
Some TIC and DST investments may convert to Real Estate Investment Trusts (REITs) after a period of time, providing additional diversity, divisibility and liquidity.
It’s always a good idea to consult with a qualified intermediary about the details of your 1031 exchange before you begin the process.
1031 Exchange Company
If you’re considering a 1031 exchange, it’s best to talk with a qualified intermediary. There are many regulations that govern a 1031 exchange, and you want to make sure you’re covering all of your bases. We can answer your questions, advise you throughout the entire exchange, and prepare the necessary documents for closing. Contact the qualified intermediaries at CPEC1031 today to get started! You can find us at our primary office in Minneapolis.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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