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1031 Exchange made simple

Engaging in a 1031 exchange empowers you to sell an investment property and redirect the funds into another like-kind property, without paying taxes.

It's essential to note that you must not receive the proceeds directly; instead, they must be securely held in a third-party 1031 escrow account, typically handled by a qualified intermediary.

To qualify for a 1031 exchange and to defer capital gains tax, all properties involved in the exchange must be considered like-kind.

When executed correctly, there's no limit on how frequently you can 1031 exchange and continue to build wealth without paying taxes.

Important Timelines & Rules

45 Day Rule

Once the sale of the property occurs the qualified intermediary will receive the cash from the sale.  You then have 45 calendar days to identify an equal or greater value replacement property or else you pay taxes.

180 Day Rule

You must close on your replacement property within 180 calendar days of the sale of your old property.

The 3 Property Rule

The timeline allows for up to 3 properties that combine to be equal or greater in value from the property sold.

The 200% Rule

Allows for the identification of more than 3 properties, as long as the combined value does not exceed 200% of the property value sold.


Meet the Delaware Statutory Trust

A Passive 1031 Exchange solution

Are you tired of the headaches of being a landlord?

Do you want to sell your investment property but are afraid of the tax implications?

A DST is a passive 1031 exchange strategy that enables investors to access large institutional grade real estate properties.

The DST is an independent legal entity that provides investors access to professionally managed and income producing real estate to fulfill their 1031 exchange obligations.  In 2004, the IRS issued revenue ruling 2004 – 86, permitting the utilization of a DST to acquire real estate, with the beneficial stake in the trust being viewed as a direct interest in the replacement property.



Continue to preserve and build wealth for you and your heirs without paying taxes.

Taxes to defer:

  • Federal Capital Gains Tax
  • State Capital Gains Tax
  • Depreciation Recapture Tax
  • Net Investment Tax

Upon passing, your heirs will inherit a step-up in cost basis, on your investment real estate.


Estate Planning with the DST

A DST provides a structured estate planning framework, allowing investors to transfer real estate wealth across generations seamlessly upon their passing.


The Power of the DST:

Tired of dealing with Tenants, Toilets, & Trash? The DST is the perfect retirement/exit strategy for tired landlords.

  • Access institutional-grade real estate management.
  • Generate passive income with no effort.
  • Foster intergenerational wealth through continuous reinvestment.
  • Beneficiaries will inherit a stepped-up cost basis, eliminating capital gains taxes.
  • Diversify your wealth across multiple states, sector, and DST operator.

Backup Plan

Identify a DST within the 45-day window if a traditional1031 exchange fails.

Identify a DST as a safety net if your deal collapses on day 44.


Unused Equity

Any remaining equity from the sale of an investment property, which cannot be matched with a replacement property of equal or greater value, can be reinvested in a DST to eliminate tax burdens!

For instance, if a property sells for $1 million and a replacement property is identified for $800K, the remaining $200K can be invested in a DST to comply with the equal or greater value rule of a 1031 exchange. This allows investors to maintain both passive and active roles simultaneously.

Debt Replacement

DSTs are equipped with prearranged non-recourse institutional financing that can substitute an investor's debt commitment during a 1031 exchange.

This feature enables the sale and completion of a 1031 exchange without the necessity of a loan application or accepting a higher interest rate.

Work With JoJo

As one of coastal Orange County's premier luxury real estate experts, JoJo Romeo-Watson is known by peers and clients alike for her integrity, perseverance and high-level negotiation skills, along with her grounded personality and infectious enthusiasm. JoJo is committed to providing unmatched service, responsive communication, and meticulous attention to detail and transparency throughout each transaction - all delivering exceptional results for her clients.