What selling a particular kind of property means for an exchange: recapture, personal property, safe harbors, financing and the replacement options that fit.
The property you are selling shapes the exchange: a vacation rental has a safe harbor to meet, farmland comes with equipment and water rights that are not like-kind, a hotel carries goodwill and furniture, and a low-basis rental house is mostly recapture. These pages start from the asset on the settlement statement.
Each one covers what qualifies, what does not, the recapture and financing math, and the replacement structures that fit sellers of that property.
Selling a building leased to a cannabis operator: the real estate can be exchanged, but federal law shapes who will lend and buy, and 280E sits with the tenant.
ReadSelling a dollar store on a net lease: primary terms run 5 to 15 years, renewals are the tenant's call, and buyers price the years left. The sale can be exchanged.
ReadSelling a medical office building: only land, shell and structural components are like-kind, physician leases must pass Stark, and build-outs recapture.
ReadA depreciated strip center owes up to 25% on recapture, 15-20% on gain and 3.8% NIIT; a full 1031 defers all three. Replacements, boot, mixed use, FTB 3840.
ReadMost hangars sit on an airport ground lease, so the exchange turns on 30 years left to run, counting options, and on the hangar being rented or used in business.
ReadOnly the dealership's land, building and paving can be exchanged; vehicles, parts, equipment, franchise rights and blue sky are taxed outside the 1031 exchange.
ReadWarehouses are listed buildings under Reg. Section 1.1031(a)-3: structure, docks and wiring exchange, racking and cranes do not, and cost-seg recapture is the trap.
ReadOwner-occupied offices qualify as business-use real estate; only the real-estate share of a practice sale is exchangeable. Furniture and goodwill are taxed.
ReadA cell-tower or billboard lease buyout is usually a perpetual or long-term easement, real property under Reg. 1.1031(a)-3, so the price can be exchanged.
ReadSelling a gas station in a 1031: land, store, canopy and paving are like-kind; pumps and the fuel contract are not; UST rules and a Phase I set the buyer pool.
ReadMobile home park sale: land, pads, utilities and roads exchange; park-owned homes only if real property under state law on closing day; chattel notes never do.
ReadA $500,000 rental house with $100,000 of depreciation can owe about $150,000 of tax on a cash sale in a high-tax state; a 1031 exchange defers all of it.
ReadSelf-storage facility sale: buildings, gates, fencing and paving exchange; the tenant-insurance program and brand do not, and cost-seg recapture is the trap.
ReadSelling a single-tenant NNN building: buyers price the remaining lease term, depreciation is taxed at up to 25%, and a DST or another net lease can replace it.
ReadA $4 million apartment sale with $800,000 of depreciation can owe about $780,000 federally; a 1031 defers it if deposits and prorations stay out of proceeds.
ReadAn RV park's land, pads, roads and hookups exchange as real property; park models, rental RVs and the permit do not, and bonus depreciation is recaptured.
ReadA horse farm sale splits three ways: the home under section 121, barns and land in the 1031, horses and equipment taxed; some barns recapture as 1245 property.
ReadCropland, barns and grain bins are like-kind to any U.S. real estate; the farmhouse takes section 121, equipment is taxed, and new section 1062 spreads tax over 4 years.
ReadBefore identifying a NNN property, underwrite lease term, rent bumps, tenant credit and store sales, then the cap rate, debt to replace and residual value.
ReadBuying apartments in a 1031? Rebuild the T-12 and rent roll the way an agency lender will, budget taxes after your purchase, and line up debt before day 180.
ReadRaw land is valid replacement property if held for investment, not for sale. Plan for no income, carrying costs, and recapture when a building goes into land.
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.
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.
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.
Free 1031 proposal
Breakwater Exchange’s expert guidance helps you maximize returns while minimizing tax exposure, so you can invest with clarity and confidence.
