Sold investment property? Here's what to do in your 45 days.

Up to 180 days from your sale closing. You have two firm deadlines: Day 45 to identify replacement property in writing to your Qualified Intermediary, and Day 180 to close on it. For DST replacements, subscription paperwork typically takes 5–10 business days, so most DST closings happen well before the 180-day deadline. Direct property exchanges often run closer to the full 180 due to inspection, financing, and title timelines.

The "like-kind" standard is broad. Almost any real property held for investment or business use qualifies as like-kind to almost any other real property held for the same purpose. A strip center can be exchanged for an apartment building. Raw land for an industrial property. Direct real estate for a DST interest. What does NOT qualify: personal residences, dealer inventory (property held for resale), foreign real estate exchanged for U.S. real estate, and partnership interests.

A Delaware Statutory Trust (DST) is a legal structure that lets multiple accredited investors hold fractional ownership of institutional-grade real estate, apartment buildings, industrial parks, medical offices, retail centers, through a single trust. Instead of buying a whole building, you buy a beneficial interest in the trust that owns it.

Yes. The IRS requires a Qualified Intermediary (QI) to hold your sale proceeds throughout the exchange. If you take possession of the funds, even briefly, the exchange is invalid under "constructive receipt" rules and the entire gain becomes taxable. The QI must be engaged before you close on your sale. QI’s are not all created equal: ask about segregated accounts, audit history, bonding and insurance, and fee structure before you sign.

Constructive receipt means you have access to or control over the sale proceeds, even if the money never physically reached you. The IRS treats constructive receipt as actual receipt, and that disqualifies your 1031 exchange. The most common ways investors trigger constructive receipt: asking the closing agent to wire any portion of proceeds to them "for expenses," letting funds sit in their attorney's IOLTA account, or signing for the funds at closing. Avoid this by routing every dollar through your QI from day one.

DSTs are generally illiquid, most investors hold their interest until the sponsor sells the underlying property, which typically happens 5–10 years after acquisition. There is no public secondary market for DST interests. Some sponsors facilitate private buyouts, but they're rare and usually at a discount. Treat your DST investment as a long-term hold matching the sponsor's projected disposition timeline. If liquidity matters more than tax deferral, a DST may not be the right fit. Talk to a specialist about alternatives.

We share your information only with the registered representative assigned to your geographic region within our FINRA/SIPC-registered distribution network. We do not sell, rent, or share your information with third-party marketers, list brokers, or unaffiliated sponsors. The information you provide is used to qualify you for accreditation, route you to an appropriate specialist, and follow up on your inquiry. See our Privacy Policy for the full data-handling commitment.

No. The specialist conversation is free and no-obligation. Specialists are FINRA/SIPC-registered representatives within our registered distribution network. They earn compensation only if you eventually subscribe to a securities offering, and that compensation is fully disclosed in the offering documents before you sign anything.

Yes, to subscribe to a DST. DSTs are Reg D private placements offered exclusively to accredited investors, generally, individuals with net worth above $1 million (excluding primary residence) or income above $200,000 individually / $300,000 jointly for the past two years. The educational content on this site is open to anyone, but a specialist conversation requires accreditation self-attestation.

Most DST websites are sponsor-controlled marketing channels promoting a single offering. This site is structured as an educational resource with plain-English explanations, honest pros and cons, and a specialist match through our FINRA/SIPC-registered distribution network. We don't pitch specific deals. We route you to a registered representative who can walk you through your options based on your situation.

The exchange fails. The IRS does not grant extensions, even for natural disasters in most cases. The full gain on your relinquished property becomes immediately taxable. The calculator at the top of this page exists to make sure you know exactly when your Day 45 falls from the moment you close on your sale. If you're approaching your deadline, talk to a specialist immediately.

No. Section 1031 applies only to property held for investment or productive use in a trade or business. Personal residences and second homes used as personal property are excluded from 1031 treatment. There are separate tax provisions (Section 121) for primary residences that allow some gain exclusion when you sell, but that's a different mechanism. If you converted a former primary residence to a rental and held it for investment for some period, parts of it may qualify; consult your CPA.

A 1031 exchange is the tax strategy, IRC Section 1031 lets you defer capital gains tax when you swap one investment property for another like-kind property. A DST (Delaware Statutory Trust) is one type of replacement property you can use inside a 1031 exchange. Many investors use a DST because it provides passive ownership without management responsibility, while still satisfying the like-kind requirement. You can do a 1031 without using a DST, but you can't use a DST as 1031 replacement without doing a 1031.