Case study
At Breakwater Exchange, we help investors reduce tax exposure while preserving wealth. In this case, our team resolved a common 1031 exchange challenge with precision and care.
As an executive at a Fortune 500 company, our client has a compensation package that is primarily compromised of company stock options As a result, her investment portfolio was quite robust, but heavily concentrated in this singular stock. If the performance of her company were to ever falter, her entire investment portfolio could be negatively impact.
Breakwater Exchange suggested she sell off some off this position through the year since it was performing well, then reinvest the proceeds into something more diversified like ETFs. The only issue was the capital gains hit she would incur from selling off the stock, so we advised that we utilize bonus depreciation to offset that gain.
Outcome
The client was able to execute the strategy, then used a portion of her proceeds to invest in a bonus depreciation fund. Instead of paying taxes, she was able to generate enough depreciation to offset the entire capital gain she realized. The client is now much more diversified and confident in her investment portfolio moving further due to the concentration risk being removed.
Furthermore, she gained exposure to more real estate which was something her portfolio was lacking entirely with the exception of her primary residence
From tailored documentation to timing-specific strategy, Breakwater Exchange simplifies complex exchanges.
Breakwater Exchange helps you strategically handle excess proceeds, or “boot,” so you don’t face unnecessary taxes. Our documentation and timing process ensures clarity and compliance.
Yes. We evaluate debt replacement on every transaction and offer solutions, like offsetting cash or leveraging Zero strategies, to help you avoid mortgage boot tax exposure.
With Breakwater Exchange, boot is best handled upfront. We’ll work with your escrow team to release funds before the exchange begins, reducing complications and improving outcomes.
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Read moreDST 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.
Texas metro · Southwest
A stabilised garden-style community in a growing Texas metro, with a non-recourse loan already in place.
Shown with marketplace access
Sample offering: a hypothetical illustration of this structure type, not an actual or current offering.
Suburban Pennsylvania · Northeast
A purpose-built community run by a national operator under a management agreement, not a lease.
Shown with marketplace access
Sample offering: a hypothetical illustration of this structure type, not an actual or current offering.
Southern California infill · West
Smaller infill warehouses close to population centres, leased to several tenants on shorter terms.
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.
Free 1031 proposal
Breakwater Exchange’s expert guidance helps you maximize returns while minimizing tax exposure, so you can invest with clarity and confidence.
