Case study
Discover how Breakwater Exchange helped a client preserve wealth, defer tax, and generate passive income in this case study. Learn how our approach creates long-term results.
After selling their family-run construction business of over two decades, Breakwater Exchange’s clients found themselves at a financial crossroads. With a $3 million capital gain looming, their primary concern was how to avoid a substantial tax hit while still making smart, long-term investments. The couple had worked hard to build their business and wanted to protect their legacy while shifting from active management to passive income. Our team stepped in to explore sophisticated deferral strategies that could help them reinvest intelligently and preserve more of what they had earned.
By allocating $1 million of their proceeds across three well-vetted Opportunity Zone funds, Breakwater Exchange’s clients were able to defer capital gains tax and earn passive income. These investments were tied to tangible development projects in high-growth communities, offering long-term upside and built-in social impact.
Outcome
Roughly two and a half years after funding the QOFs, the underlying real estate developments were complete, leased, and fully stabilized. The client now receives annual distributions averaging 7%, a reliable income stream with none of the management burden they’d carried for decades. What’s more, by holding these funds for at least 10 years, they’ll eliminate capital gains from the business sale and QOF asset appreciation. Breakwater Exchange’s strategy and process provided peace of mind, real financial performance, and a legacy-level wealth plan.
Breakwater Exchange can help you design a personalized Opportunity Zone plan. Reach out today and let’s craft a wealth strategy that works for both your portfolio and your tax future.
Breakwater Exchange can help you defer capital gains from real estate, business sales, and other appreciated assets. We structure it to meet all IRS requirements.
Breakwater Exchange’s Opportunity Zone solutions are designed with a 10+ year hold strategy in mind. After this period, capital gains from the fund can be eliminated entirely.
Yes. Many of Breakwater Exchange’s QOF projects begin generating income within 24–36 months after stabilization. Our team and our esteemed sponsors vet every fund for potential yield and growth.
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At Breakwater Exchange, we simplify complex 1031 exchanges by creating personalized, diversified solutions for every investor. See how our proven DST strategies made retirement smoother for one Southern California couple.
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.
Flagship state university · Southeast
Purpose-built student housing within walking distance of a large public university, leased by the bed.
Shown with marketplace access
Sample offering: a hypothetical illustration of this structure type, not an actual or current offering.
Phoenix suburbs · Southwest
Two stabilised facilities held without debt, for sellers who want storage exposure with no loan inside the trust.
Shown with marketplace access
Sample offering: a hypothetical illustration of this structure type, not an actual or current offering.
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.
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.
