A Smarter Way to Help Clients Defer Capital Gains on Real Estate Sales
Selling investment or business real estate without a plan can trigger significant federal and state tax exposure, but a properly structured 1031 exchange may allow clients to defer capital gains and depreciation recapture taxes.
When combined with Delaware Statutory Trusts or DSTs (which can qualify as like-kind property under IRS Revenue Ruling 2004-86), this strategic pairing can help your clients who:
- Are facing large taxable gains from the sale of real estate
- Want to defer capital gains and depreciation recapture taxes
- Are tired of active property management and want passive ownership
- Need to meet tight 45-day and 180-day IRS deadlines
- Want diversification across property types, tenants, or geographies
- Are planning for estate transfer and step-up in basis opportunities
Choreo’s 1031 and Delaware Statutory Trusts Investment Strategy guide is specifically for CPAs who are interested in understanding:
- How 1031 exchanges defer capital gains and depreciation recapture taxes
- Key IRS rules CPAs must monitor (same-taxpayer, value, and identification requirements)
- How DSTs function within a 1031 exchange
- Benefits and trade-offs of DST ownership versus direct real estate
- Planning considerations, risks, and compliance caveats CPAs should review