One real question per page, answered directly first, then explained with the rules, numbers and forms behind the answer.
Each page here owns one question people ask before, during or after an exchange, and opens with the answer. The explanation that follows carries the rule, the number and the form behind it, with the sources listed at the end.
Where a question turns on your state, the state pages carry those rules; where it turns on the property you are selling, the property-type pages do.
Exchange expenses are never a current deduction. Form 8824 line 15 uses them to absorb boot, then line 18 rolls the rest into your replacement basis.
ReadNo. Once the deed is yours, money the intermediary releases for work is cash boot. Only an improvement exchange counts construction, and the cap is 180 days.
ReadSix dates in Part I, then eleven figures in Part III. Line 19 is the gain, line 20 the taxable part, line 24 the deferral and line 25 your new basis.
ReadOne exchange gets one Form 8824 however many properties are on either side; the basis on line 25 is then split by relative fair market value.
ReadProrated rent is not boot; the regulation names it. A deposit credit is, unless you replace it with your own cash, because it is not debt you can offset.
ReadA repair credit you give your buyer lowers your sale price and is not boot. A credit you receive as a buyer is boot only if it ends up as cash in your hands.
ReadCommissions, title and escrow fees, transfer taxes and the QI fee. They cut Form 8824 line 15 dollar for dollar; lender charges and prorations do not.
ReadNot as a separate bill. Title, lender and acquisition costs are built into the price of the interest; what you pay on top is your intermediary's fee and advisers.
ReadNo. A DST owns its real estate before you invest and cannot buy more afterward. You choose by picking among trusts, each with its properties already fixed.
ReadYes. Rev. Rul. 2004-86 itself routes the exchange through a qualified intermediary, and proceeds that reach you first end the exchange by constructive receipt.
ReadAny real estate you buy directly still works: rentals, net-leased buildings, land or a co-owned share. Private placements such as DSTs may be closed to you.
ReadA springing LLC lets the DST trustee convert to a partnership with no investor vote. Section 721 keeps the conversion tax-free; it still ends your 1031 exit.
ReadYes. A relative can guarantee or co-sign the loan without affecting your exchange, as long as title stays in your name. Putting them on the deed causes boot.
ReadYes. A blanket loan, or cash borrowed against another property you own, offsets the debt you paid off on the sale. What it cannot do is offset cash you took out.
ReadA prepayment penalty is interest, not a selling cost. Paid from sale proceeds it is generally boot; paid with your own cash it stays deductible and creates no boot.
ReadNo. Notes, lien certificates and a seller's land contract interest are debt, which Treasury excludes from real property. The land behind them can qualify.
ReadNo. Since 2018 a 1031 exchange covers only real property, and stocks never qualified. Opportunity funds, installment sales and charitable trusts are the options.
ReadYes for the land and building, since property you use in your own business qualifies. Exchange money spent on machines, goodwill or inventory is taxable boot.
ReadRarely. The interest must be deeded real property and held to rent, not to vacation in, and points or club memberships fail the real property test outright.
ReadYes. Land under a solar or wind lease is still fee real property you can sell or buy in an exchange. Rent and lease bonuses are income, not exchangeable proceeds.
ReadYes, but you rarely need to. An office inside the house shares the home-sale exclusion; a 1031 matters only for its depreciation or for gain above the cap.
ReadNo. Buying a rental with home-sale money defers nothing. The exclusion covers up to $250,000 or $500,000 of gain, and the rest is taxed in the year you sell.
ReadRental years after 2008 before you moved in are non-qualified use. That share of the gain, by time owned, cannot be excluded even if you meet the two-year test.
ReadSplit the price and basis by unit: your side gets the home-sale exclusion, the rented side can go through a 1031 exchange, and each half is reported separately.
ReadYes, if the ADU is its own dwelling unit rented at fair rent. Allocate price and basis to it, exchange that share into investment property, exclude the house gain.
ReadNot as part of the exchange. Unlisted property bought with exchange funds is treated as not like-kind and taxed as boot, unless it closed within 45 days.
ReadNo hardship extension exists. Only an IRS disaster release under Rev. Proc. 2018-58 section 17 moves a 45- or 180-day deadline, by 120 days or the release's date.
ReadYes, if your 2026 sale closed after October 17: Form 4868 for individuals, or after September 16 with Form 7004 for calendar-year partnerships and S corps.
ReadYes. Both periods are calendar days ending at midnight on day 45 and day 180; a Saturday or holiday deadline does not roll to Monday.
ReadIt starts at closing, the day your sale is completed and the buyer takes ownership. Recording comes later and adds no days at either end of the 180-day period.
ReadName the trust as its offering documents do, add the property address, and state the dollar amount you intend to buy, in a signed notice sent by day 45.
ReadA valid 1031 identification is a signed written document delivered by midnight of day 45 to the QI or seller; an email to your own agent or attorney does not count.
ReadDay zero is the date the benefits and burdens of ownership pass, normally the day escrow funds and releases your deed, never the day the county records it.
ReadThe QI may release funds after day 45 with nothing identified, on day 181, or once a written contingency ends every deal; tax falls in the payout year.
ReadNo. Your agreement must give you no right to receive, pledge or borrow the money before the exchange period ends, and firing the intermediary changes nothing.
ReadNo, if they worked for you in the two years ending on your closing date. Reg. 1.1031(k)-1(k)(2) treats that person as your agent, and an agent is disqualified.
ReadNo. The QI never takes title or replaces escrow: it is assigned into your contract, the deed goes to the buyer, and escrow wires the net proceeds to the QI.
ReadNo federal license exists. Judge the account: a $1M fidelity bond or a qualified escrow needing your signature, plus $250,000 of errors and omissions cover.
ReadA straightforward delayed exchange runs about $750 to $1,500 in intermediary fees. Reverse and improvement structures cost $4,500 to $15,000 plus draw fees.
ReadA reverse exchange costs more because a titleholder must form an entity, take title, borrow and insure for up to 180 days, and some states tax the extra transfers.
ReadFar more than a delayed exchange: a titleholder entity, two title transfers, a construction loan it must carry, and boot on anything unbuilt by day 180.
ReadLet escrow hold it. The QI can wire the deposit from exchange funds once assigned into your purchase contract; your own deposit returns as a closing credit.
ReadYou do, as the exchanger. It can be paid at closing or from the exchange account without boot because it is a transactional item, and it then reduces your boot.
ReadNot in full. Section 469(g) releases them only where all realized gain is recognized, so an exchange keeps them suspended, though boot you take can absorb them.
ReadIt can. The replacement inherits the old UBIA, not its price, which can cut the QBI cap above the 2026 thresholds. A triple-net replacement may not qualify.
ReadA taxable rental sale can trigger IRMAA surcharges two years later, and a sale is not a life-changing event. A full 1031 keeps the gain out of Medicare's MAGI.
ReadUsually not, if you certify the exchange before closing. California still makes the QI withhold 3 1/3% on boot above $1,500, or on a failed exchange.
ReadYes. Section 1033 has no location test; the replacement is judged by its use or its kind, not its state. Foreign property and state taxes are the open points.
ReadBusiness or investment property goes on Form 4797, with a statement for the gain year and another for the purchase year. No Form 8824 and no separate election form.
ReadAn authorized official tells you the body has decided to acquire your property, and you reasonably expect condemnation if you refuse. That date starts the clock.
ReadNot every state does. California, New York and North Carolina tax the gain in the year of sale even when you defer it federally, then let you remove it on inclusion.
ReadYes for goodwill you built, which is capital gain. On goodwill you bought, past amortization returns as ordinary income first; only gain above it is eligible.
ReadIn practice, accredited investors with passive income or gains to offset, who can subscribe early enough for the fund to place property in service that same year.
ReadA permanent pipeline easement is a sale of part of your land: the payment reduces the strip’s basis and the excess is gain. Workspace and crop damage are income.
ReadSplit the sale. The farmhouse you live in and its yard can use the section 121 home exclusion; the farmland and farm buildings go into the 1031 exchange.
ReadNo. Boot is cash received in the exchange and taxed that year. A cash out DST's cash is a later loan: not income, but repaid and taxed through the exit instead.
ReadEach offering sets its own minimum. What matters more is the equity needed to carry the debt you must replace: about 11 to 25 cents per dollar of debt.
ReadTell us what you are selling and when it closes. An advisor will send a free proposal with replacement options that fit your deadlines and your state's rules.
DST marketplace · Preview
Three of twelve sample structures: asset class, leverage, minimum and hold. The sponsor, the distributions paid and the offering size are what marketplace access adds, after a short suitability call. Request access and the current list follows.
Interstate logistics corridor · Southeast
A single-tenant logistics building on a long net lease to an investment-grade shipper, held without debt.
Shown with marketplace access
Sample offering: a hypothetical illustration of this structure type, not an actual or current offering.
Six states · Midwest
A portfolio of free-standing stores leased to a national pharmacy chain, spread across several states.
Shown with marketplace access
Sample offering: a hypothetical illustration of this structure type, not an actual or current offering.
Florida and Georgia · Southeast
Climate-controlled storage facilities in high-growth suburbs, with month-to-month leases that reprice quickly.
Shown with marketplace access
Sample offering: a hypothetical illustration of this structure type, not an actual or current offering.
Sample offerings: hypothetical illustrations of structure types, not actual or current offerings. Photos are representative of each asset class. Current offerings are private placements for accredited investors, described by private placement memorandum.
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