721 DST Investments
A potential path from direct real estate, to a DST, and later to a REIT.
A 721 DST strategy is generally a two-stage tax-deferral path. An investor first sells investment real estate and completes a 1031 exchange into a qualifying Delaware Statutory Trust (DST). If a later UPREIT transaction is offered and completed, the DST interest or underlying property may then be contributed to a REIT operating partnership under Section 721 in exchange for operating partnership units, or OP units.
The investor moves from direct real estate ownership, to passive DST ownership, and potentially to an interest tied to a broader REIT portfolio. The important point is that the 721 step is separate from the initial 1031 exchange.
The 1031 → DST → potential 721 path, at a glance
1. Start With a 1031Sell qualifying investment real estate and reinvest through a properly structured 1031 exchange.
2. Own a DST FirstDuring the first stage, the investor owns a beneficial interest in DST real estate.
3. Potential 721 LaterIf offered and completed, the DST/property may later be contributed to a REIT operating partnership.
4. Receive OP UnitsThe investor generally receives operating partnership units; liquidity and redemption depend on program terms.
Stages 1 and 2 are what an investor commits to at the outset. Stages 3 and 4 are a separate decision, typically two to three years later, and are evaluated on their own terms when the transaction is actually offered.
Why Consider a 721 DST Strategy?
Continued Tax Deferral
A properly structured 1031 exchange defers tax on the sale. If a qualifying Section 721 contribution follows, that deferral generally carries into the OP units. Tax is deferred, not eliminated.
Exit From Landlording
You hand off tenants, leasing, repairs, financing and capital projects. The sponsor operates the property and you receive reporting and distributions instead of management.
Broader Diversification
Your economics shift from a single building to a REIT portfolio spanning multiple assets, tenants, markets and property sectors.
Potential Income
DSTs and REIT operating partnerships typically make periodic distributions. Amounts are set by property performance, leverage, expenses and reserves.
Before Choosing a 721-Oriented DST, Understand the End Destination
Two 721-oriented DST offerings can look similar during a 1031 exchange but lead to very different long-term outcomes. The decision should not be based solely on the DST’s projected income or an anticipated conversion timeline.
Investors need to understand the real estate they own during the DST stage, the sponsor responsible for operating it, the exact conditions for a possible Section 721 transaction, and the REIT they may ultimately own through OP units. A future 721 transaction should be viewed as a potential exit path, not as a substitute for underwriting the DST itself.
- Does the DST real estate make sense if the 721 transaction never occurs?
- Is the sponsor experienced and financially capable of operating the property through different market conditions?
- Are the proposed 721 timing, election rights, valuation process, and conditions clearly understood?
- Is the destination REIT attractive on its own based on portfolio quality, leverage, distributions, fees, valuation, and liquidity provisions?
- Does the investor understand that receiving OP units generally changes future 1031 exchange flexibility?
Underwrite Two Investments, Not One
A 721-oriented DST is two decisions in one transaction. The real estate you own during the DST stage, the terms of any Section 721 contribution, and the REIT you may end up holding each have to stand up on their own.
DST stage
- Underlying real estate
- Purchase price and appraisal
- Market, rents and expenses
- Debt and reserves
- Fees and sponsor track record
- Exit assumptions
721 terms
- Expected timing and what drives it
- Election or mandatory terms
- Valuation and exchange ratio
- Debt and tax-protection terms
- Conflicts and lender conditions
- What could stop the transaction
Destination REIT
- Portfolio quality
- Leverage and debt maturities
- Distribution coverage
- NAV and valuation process
- Fees and redemption history
- Sponsor strength and cycle history
The DST and the destination REIT each need to stand on their own merits. A strong REIT does not compensate for a weak DST, and the reverse is equally true. The full due-diligence discussion is further down this page.
Why Work With GCA 1031 for 721 DST and UPREIT Planning
A 721 DST strategy may give certain real estate owners a path to move from an actively managed property into a passive Delaware Statutory Trust (DST), and later into the operating partnership of a real estate investment trust (REIT). When properly structured, each stage may defer capital-gain recognition, but the strategy involves two different tax-code provisions, multiple investment decisions, and important limitations.
GCA 1031 helps investors evaluate the entire path before committing capital. That includes the initial 1031 exchange, the quality of the DST real estate and sponsor, the terms and timing of a potential Section 721 transaction, and the strength, liquidity provisions, distribution history, leverage, valuation, and long-term outlook of the destination REIT.
What Is a 721 Exchange?
Section 721 of the Internal Revenue Code generally provides for nonrecognition of gain or loss when property is contributed to a partnership in exchange for a partnership interest. In an UPREIT structure, a property owner contributes real estate to the REIT’s operating partnership and receives operating partnership units, commonly called OP units, rather than cash.
The phrase “721 exchange” is commonly used, although the transaction is technically a contribution under Section 721. The investor does not receive REIT shares as 1031 replacement property. Instead, the investor receives an interest in the operating partnership that owns the REIT’s real estate assets.
Important distinction
REIT shares and partnership interests generally do not qualify as replacement real property in a Section 1031 exchange. For many individual investors, the available path is therefore a two-step strategy: first complete a 1031 exchange into a qualifying DST interest, then later contribute that DST interest or the underlying real estate to a REIT operating partnership under Section 721.
Traditional DST vs. a 721-Oriented DST
Both structures may begin as qualifying DST replacement property in a properly structured 1031 exchange. The key difference is the intended long-term exit path.
| Decision Point | Traditional DST | 721-Oriented DST |
|---|---|---|
| What you own initially | A beneficial interest in DST real estate. | A beneficial interest in DST real estate. |
| Intended later exit | Sponsor ultimately sells the property; investor may take cash or complete another 1031 if requirements are met. | A potential contribution of the DST/property to a REIT operating partnership under Section 721. |
| What you may own later | New replacement real estate if another 1031 is completed. | OP units in the REIT operating partnership if the 721 transaction occurs. |
| Future 1031 flexibility | Generally may remain available when DST real estate is sold, subject to 1031 requirements. | Generally is not available for OP units after the Section 721 contribution. |
| Diversification path | Investor can choose multiple DSTs, sponsors, assets, and markets. | Investor may later gain economic exposure to the destination REIT’s broader portfolio. |
| Liquidity | DST interests are generally illiquid until disposition. | DST stage remains illiquid; potential liquidity in REIT- any later redemption or conversion depends on the REIT/program terms and is not guaranteed. |
What you own initially
Traditional DST: A beneficial interest in DST real estate.
721-Oriented DST: A beneficial interest in DST real estate.
Intended later exit
Traditional DST: Sponsor ultimately sells the property; investor may take cash or complete another 1031 if requirements are met.
721-Oriented DST: A potential contribution of the DST/property to a REIT operating partnership under Section 721.
What you may own later
Traditional DST: New replacement real estate if another 1031 is completed.
721-Oriented DST: OP units in the REIT operating partnership if the 721 transaction occurs.
Future 1031 flexibility
Traditional DST: Generally may remain available when DST real estate is sold, subject to 1031 requirements.
721-Oriented DST: Generally is not available for OP units after the Section 721 contribution.
Diversification path
Traditional DST: Investor can choose multiple DSTs, sponsors, assets, and markets.
721-Oriented DST: Investor may later gain economic exposure to the destination REIT’s broader portfolio.
Liquidity
Traditional DST: DST interests are generally illiquid until disposition.
721-Oriented DST: DST stage remains illiquid; potential liquidity in REIT- any later redemption or conversion depends on the REIT/program terms and is not guaranteed.
How a 1031-to-DST-to-721 UPREIT Strategy Works
1. Sell investment real estate
The investor sells appreciated real property and arranges for a qualified intermediary to hold the proceeds before closing.
2. Complete a Section 1031 exchange into a DST
Within the applicable 45-day identification and 180-day exchange periods, the investor acquires a beneficial interest in a DST structured to qualify as replacement real property.
3. Hold the DST investment
The investor receives their proportionate share of income, expenses, depreciation, and potential appreciation while the sponsor operates the property. Many DSTs designed for a 721 strategy anticipate a two- to three-year holding period before a potential UPREIT transaction, but timing varies, and no transaction is guaranteed.
4. Potential Section 721 contribution
If the contemplated transaction is offered and completed, the DST interest or property is contributed to the REIT’s operating partnership in exchange for OP units. The investor’s tax basis and deferred gain generally carry into the partnership interest, subject to the transaction documents and tax rules.
5. Remain invested or seek liquidity later
The investor may continue holding OP units and receiving distributions. Depending on the program, OP units may later be redeemable for cash or convertible into REIT shares. A redemption, conversion, sale, or other disposition may be taxable, and liquidity is not assured.
Potential Benefits of a 721 DST Strategy
Key benefits include:
1. Continued Tax Deferral
A properly structured 1031 exchange may defer taxes when the original property is sold, and a later qualifying Section 721 contribution may continue that deferral when the real estate is contributed for OP units. Tax is generally deferred rather than eliminated.
2. A Long-Term Exit From Active Landlording
The strategy may allow an owner to move from direct responsibility for tenants, leasing, repairs, financing, and capital projects into professionally managed real estate.
3. Broader Portfolio Diversification
After the 721 transaction, the investor’s economics may be tied to a larger REIT portfolio rather than a single property. The portfolio may include multiple assets, tenants, markets, and property sectors. Diversification does not guarantee a profit or protect against loss.
4. Potential Income From Professionally Managed Real Estate
DSTs and REIT operating partnerships may make periodic distributions. The amount and frequency depend on property performance, leverage, expenses, reserves, and sponsor or REIT decisions. Distributions can change and are not guaranteed.
5. Possible Future Liquidity Options
Some programs provide a path to redeem OP units or convert them into REIT shares after applicable holding periods. This may offer more flexibility than direct real estate, but redemption programs may be limited, modified, oversubscribed, or suspended.
6. Possible Future Liquidity Options
OP units may be easier to divide among heirs than a directly owned building. Under current law, inherited assets may receive a basis adjustment, but estate and tax outcomes depend on individual facts and future law.
Understand the change in future exit flexibility
DST ownershipThe investor owns a beneficial interest in real property.
Traditional DST exitPotential sale → cash and tax, or another 1031 if requirements are met.
Future 1031 flexibilityMay remain available after a traditional DST disposition.
Potential 721 pathContribution → OP units in the REIT operating partnership.
OP unit exitPotential liquidity in the REIT. Hold, or seek redemption or conversion under program terms; a redemption or conversion may be a taxable event.
After a Section 721 contribution, OP units are partnership interests rather than real property, and another 1031 exchange generally is not available for those units.
Material Risks and Considerations
A 721 DST strategy should be evaluated as an investment first and a tax strategy second. Tax deferral does not make an unsuitable property, sponsor, or REIT appropriate.
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1. The 721 transaction may not occur
The sponsor may describe an anticipated UPREIT contribution, but timing and completion can depend on market conditions, lender consent, property performance, REIT approval, tax requirements, and other factors. Investors should not assume a proposed transaction is guaranteed.
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2. Optional versus mandatory conversion
Some structures give investors a choice, while others may require participation in a stated exit. Investors should understand the precise voting rights, alternatives, valuation method, and consequences of declining or participating before purchasing the DST.
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3. Loss of future 1031 flexibility stated exit.
Once real estate is exchanged for OP units, those units are securities rather than real property. An investor generally cannot use a later Section 1031 exchange to move OP units into another property. A taxable disposition may be the eventual exit.
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4. Illiquidity and redemption limits
DST interests, OP units, and non-traded REIT shares are generally illiquid. Any redemption program may be subject to holding periods, caps, discounts, available cash, board discretion, or suspension.
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5. REIT-level risks
The investor becomes exposed to the entire destination REIT, including its leverage, portfolio concentrations, management, valuation practices, fees, capital-raising activity, distribution coverage, and acquisition and disposition decisions.
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6. Valuation and transaction terms
The value assigned to the DST property and the OP units affects the number of units received. Appraisals, net asset value calculations, conflicts of interest, and affiliated-party transactions require careful review.
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7. Tax protection and property sales
After contribution, the operating partnership may sell or refinance the contributed property. These actions can create tax consequences for contributing investors. Any tax-protection agreement, lockout period, debt-maintenance covenant, indemnity, or exception should be reviewed with qualified tax and legal counsel.
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8. Investment performance and loss of principal
Real estate and private securities are subject to tenant, vacancy, market, interest-rate, financing, operational, regulatory, and economic risks. Distributions and appreciation are not guaranteed, and investors may lose some or all of their principal.
Why Due Diligence Must Cover Both the DST and the Destination REIT
A 721 DST is not simply a short holding vehicle on the way to a REIT. Investors own the DST during the first stage and may own OP units for many years afterward. Both investments must stand on their own merits.
- DST real estate: purchase price, appraisal, market fundamentals, rent and expense assumptions, reserves, debt terms, fees, sponsor track record, and realistic exit scenarios.
- Destination REIT: portfolio quality, leverage, debt maturities, distribution coverage, fees, net asset value methodology, share-redemption history, sponsor financial strength, and performance across market cycles.
- Tax provisions: carryover basis, debt allocation, potential gain recognition, treatment of liabilities, tax-protection provisions, and consequences of a later redemption or property sale.
- 721 transaction terms: anticipated timing, investor election rights, valuation process, exchange ratio, conflicts of interest, lender requirements, and conditions that could prevent the transaction.
See the three-panel underwriting checklist near the top of this page for the short version of everything above.
GCA 1031: Your Partner in 721 DST and UPREIT Planning
GCA 1031 approaches the strategy from a real estate and investor perspective. The goal is not to select a DST solely because it advertises a future 721 transaction. The underlying property, sponsor, conversion terms, and destination REIT must all support the investor’s objectives.
Ashley Romiti
President, GCA 1031
Nearly 15 years in commercial real estate, having personally underwritten more than $500 million of commercial property before advising investors on 1031 and DST strategy.
1. Real Estate-First Underwriting
- Review the property purchase price against market evidence and appraisals
- Analyze occupancy, tenant quality, rents, expenses, reserves, debt, and exit assumptions
- Evaluate whether projected income is supported by property fundamentals
2. Sponsor and REIT Review
- Assess the sponsor’s experience, audited financials, operating platform, and full-cycle history
- Evaluate the destination REIT’s assets, leverage, distribution coverage, valuation process, and liquidity program
- Identify affiliate relationships and potential conflicts within the transaction
3. Personalized Strategy Design
- Compare a traditional DST, 721 DST, direct replacement property, and taxable sale
- Align the strategy with income needs, risk tolerance, time horizon, liquidity, and legacy goals
- Determine whether a potential 721 transition should apply to all or only part of the exchange portfolio
4. Coordination With Your Professional Team
- Work alongside the qualified intermediary during the initial 1031 exchange
- Coordinate with the investor’s CPA and attorney on tax and legal questions
- Help organize timing, identification, subscription, and investment-review steps
5. Ongoing Review
- Monitor DST performance and sponsor communications
- Review the destination REIT and proposed terms if a 721 transaction is presented
- Help the investor understand distribution, valuation, and liquidity developments after conversion
Who Might Consider a 721 DST Strategy?
A 721 DST strategy may be worth evaluating if you:
- Own appreciated investment or commercial real estate and want to defer taxes through a 1031 exchange
- Are ready to reduce or eliminate active property-management responsibilities
- Prefer exposure to a larger, professionally managed real estate portfolio over time
- Can accept a investment horizon and potential limited liquidity
- Do not expect to require another 1031 exchange after the potential 721 contribution
- Want to simplify the administration and division of real estate wealth for retirement or estate planning
- Qualify as an accredited investor and can tolerate the risks of private real estate securities
The strategy may not be appropriate if you need near-term liquidity, want control over property decisions, expect to complete future 1031 exchanges indefinitely, are uncomfortable with a non-traded REIT, or are relying on the anticipated 721 transaction as a certainty.
May be worth evaluating
- Retiring or transitioning landlords
- Long-term owners of appreciated property
- Investors comfortable with a longer horizon and limited liquidity
- Investors who prefer a larger professionally managed real estate portfolio over time
May not fit
- Investors needing near-term liquidity
- Investors who want direct property control
- Investors expecting to continue 1031 exchanges indefinitely
- Investors uncomfortable with non-traded REIT exposure, or relying on the 721 transaction as a certainty
The GCA 1031 Process: From Property Sale to Potential UPREIT Transition
Here’s a high-level overview of how working with GCA 1031 typically unfolds:
- Plan
Initial property and tax snapshot: Review estimated value, basis, debt, income, timing, and potential tax exposure with input from your CPA.
- Plan
Goals and suitability review: Clarify income needs, liquidity, risk tolerance, management preferences, time horizon, accreditation status, and legacy objectives.
- Compare
Strategy comparison: Compare selling and paying tax, a direct 1031 replacement, traditional DSTs, and a 721-oriented DST strategy.
- Compare
DST and REIT due diligence: Evaluate the initial real estate and sponsor as well as the contemplated transaction terms and destination REIT.
- Execute
1031 identification and closing: Coordinate with the qualified intermediary and other advisors to identify and acquire the DST within the required deadlines.
- Monitor
Ongoing monitoring: Review property performance, sponsor reporting, distributions, and material changes during the DST holding period.
- Re-evaluate
Evaluate the proposed 721 transaction: If a transaction is offered, review current terms, valuation, tax considerations, election rights, and the REIT’s condition at that time before proceeding.
Important Disclosures
- This material is for educational purposes only and does not constitute an offer to buy or sell any security, or tax, legal, or accounting advice.
- Section 1031 and Section 721 transactions involve complex requirements. Investors should consult their own CPA and attorney about their specific circumstances.
- Tax deferral is not tax elimination. A redemption, conversion, sale, property disposition, debt change, or other event may trigger taxable gain.
- A proposed DST-to-UPREIT transaction may be delayed, changed, or never completed. Investors should purchase a DST only after determining that the DST itself is appropriate.
- Private placements, DST interests, OP units, and non-traded REIT shares involve material risks, including illiquidity, loss of principal, valuation uncertainty, market risk, tenant risk, leverage risk, conflicts of interest, long holding periods, and adverse tax consequences.
- Distributions, redemption programs, property values, and investment results are not guaranteed. Investors should read all offering documents carefully, particularly the risk factors.
- DST offerings are available only to accredited investors. Not all investments or services are available in every state or through every representative.
Ready to Explore a 721 DST or UPREIT Strategy?
If you are considering selling appreciated investment real estate and want to evaluate a path toward passive ownership, continued tax deferral, and a potential future REIT transition, GCA 1031 can help you compare the available options before your sale closes.
- Understand how 1031 and 721 provisions may work together
- Compare traditional DSTs with DSTs designed for a future UPREIT transaction
- Evaluate the underlying real estate, sponsor, conversion structure, and destination REIT
- Coordinate the strategy with your qualified intermediary, CPA, attorney, and estate-planning team
GCA 1031 can walk you through the details, present DST options in line with your goals, and help coordinate your 1031 exchange from start to finish.
Schedule a call with GCA1031 to discuss your property, potential tax exposure, income needs, and long-term exit goals. Call (949) 235-5606 or click below to book a meeting:
721 DST and UPREIT Frequently Asked Questions
1031 DST investments questions
1. What is a 721 exchange in simple terms?
A Section 721 transaction generally allows property to be contributed to a partnership in exchange for a partnership interest without recognizing gain at that time. In an UPREIT, the investor receives OP units in the REIT’s operating partnership rather than cash.
2. Can I complete a 1031 exchange directly into a REIT?
Generally, no. REIT shares and partnership interests are not qualifying replacement real property for a 1031 exchange. Some investors first exchange into a qualifying DST and later participate in a separate Section 721 contribution to a REIT operating partnership.
3. What is a 721 DST?
A 721 DST is a commonly used description for a DST offering designed with the possibility of a later contribution to a REIT operating partnership under Section 721. The investor initially owns a beneficial interest in the DST and may later receive OP units if the proposed transaction occurs.
4. Is the DST-to-UPREIT conversion guaranteed?
No. A contemplated transaction can depend on property performance, market conditions, financing, approvals, tax requirements, and the terms of the offering. Timing can change, and the conversion may never occur.
5. How long does the DST hold the property before a 721 transaction?
Many current programs contemplate approximately a two-year DST holding period before a possible transaction, but the actual period varies. Investors must review the specific offering documents and should be prepared to hold longer.
6. What do I receive in the 721 transaction?
Typically, the investor receives OP units in the REIT’s operating partnership. OP units are not the same as publicly traded REIT shares, although some programs may permit a later redemption or conversion subject to their terms.
7. Will I continue receiving income?
The DST may make distributions from property operations, and the operating partnership may make distributions after a 721 transaction. Distribution rates can change, may include return of capital, and are not guaranteed.
8. Can I sell or redeem my OP units whenever I want?
It depends – talk to an advisor about liquidity. OP units and non-traded REIT investments are illiquid. Redemption or conversion rights may have waiting periods, caps, discounts, or other restrictions and may be modified or suspended.
9. Can I do another 1031 exchange after receiving OP units?
Generally, no. OP units are partnership interests rather than real property. Selling, redeeming, or converting them may trigger the deferred tax, and another 1031 exchange generally is not available for the units.
10. What happens to my deferred gain?
The deferred gain generally carries into the investor’s basis in the replacement DST and then into the OP units in a qualifying transaction. Tax may be recognized later when the investor disposes of the units or when another taxable event occurs. Your CPA should evaluate the specific transaction.
11. Is a 721 DST better than a traditional DST?
Neither is automatically better. A traditional DST may preserve the ability to complete another 1031 exchange at sale. A 721 strategy may provide a path into a larger REIT portfolio, but it reduces future exchange flexibility and creates additional REIT, valuation, liquidity, and tax considerations.
12. Is the 721 transaction optional?
It depends on the offering. Some programs provide an election or alternatives; others may structure the contemplated exit differently. Investors should understand whether participation is optional or effectively required before buying the DST.
13. What should I review about the destination REIT?
Review portfolio composition, property quality, leverage, debt maturities, distribution coverage, fees, valuation methodology, redemption history, sponsor strength, conflicts of interest, audited financials, and performance through different market cycles.
14. What is an UPREIT?
UPREIT stands for Umbrella Partnership Real Estate Investment Trust. The REIT owns assets through an operating partnership. Property owners can contribute real estate to that partnership and receive OP units, subject to Section 721 and the transaction terms.
15. Who qualifies to invest in a 721 DST?
DST private placements are generally available only to accredited investors who also meet the sponsor’s suitability standards. Requirements vary, and eligibility does not mean the investment is appropriate for every accredited investor.
16. When should I begin planning?
Ideally, before listing or closing the property being sold. Early planning provides time to estimate taxes, engage a qualified intermediary, compare strategies, complete due diligence, and avoid making a long-term decision solely because the 45-day identification deadline is approaching.
“A DST is one of the few strategies where investors can diversify, defer taxes, and simplify life in a single move.”
ASHLEY ROMITI
Related GCA 1031 Services and Resources
A 721 DST strategy is one of several paths for an owner of appreciated investment real estate. These pages cover the alternatives and the underlying mechanics.
1031 Exchanges
The first stage of a 721 strategy. Deadlines, qualified intermediaries, identification rules, and replacement property requirements.
DST Investments
How Delaware Statutory Trusts work as 1031 replacement property, and how a traditional DST differs from a 721-oriented DST.
Real Estate Exit Analysis
Model a sale, a direct 1031 replacement, a DST, or a 721 path side by side before the property goes under contract.
Tax Mitigation Strategies
Options beyond a 1031 exchange for owners facing capital gain and depreciation recapture on a sale.
Opportunity Zone Funds
An alternative deferral structure with a different timeline, different qualification rules, and a different risk profile.
Oil and Gas Investing
A separate tax-advantaged category some investors evaluate alongside real estate securities.
DST Investor Guide
Our written guide to DST ownership, sponsors, and due diligence.
Case Studies
Examples of how investors have structured exchanges and passive transitions.
1031 and DST FAQs
Answers to the questions we field most often across the whole process.
About Ashley Romiti
Background, underwriting experience, and how GCA 1031 works with investors.
1031 Exchange Rules by State
Exchange mechanics are federal, but state tax treatment and withholding rules differ. GCA 1031 works with investors nationwide.
- California
- Texas
- Florida
- Arizona
- Nevada
- Washington
- Oregon
- New York
- Georgia
- North Carolina
- Utah
- Pennsylvania
Additional states are listed in the site footer. Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. You can also read recent commentary on the GCA 1031 blog or contact us directly.
Primary Sources and Investor Resources
The rules described on this page come from published IRS, SEC and FINRA guidance. Investors are encouraged to read the primary sources directly.
- 26 U.S.C. § 721Nonrecognition of gain or loss when property is contributed to a partnership in exchange for a partnership interest — the provision a 721 contribution relies on.
- 26 U.S.C. § 1031Exchange of real property held for productive use or investment, the provision behind the first stage of the strategy.
- IRS — Like-Kind Exchanges, Real Estate Tax TipsThe IRS overview of Section 1031, including what qualifies as like-kind real property and the 45-day and 180-day deadlines.
- IRS Revenue Ruling 2004-86The ruling describing when an interest in a Delaware Statutory Trust may be treated as an interest in real property for Section 1031 purposes.
- IRS Form 8824, Like-Kind ExchangesThe form used to report an exchange and calculate deferred gain and the basis of the replacement property.
- IRS Publication 544, Sales and Other Dispositions of AssetsHow gain or loss is figured on a disposition, including depreciation recapture and nontaxable exchanges.
- SEC Investor Bulletin — Non-Traded REITsLiquidity, valuation, fee and distribution risks specific to non-traded REITs, which is what an OP unit holder is ultimately exposed to.
- Investor.gov — Real Estate Investment Trusts (REITs)How REITs are structured, taxed and sold, in plain language.
- SEC Investor Bulletin — Real Estate Investment Trusts (PDF)Traded and non-traded REITs compared, including what to ask before investing.
- FINRA Regulatory Notice 13-18Guidance on how unlisted real estate programs may and may not be described to investors.
- Nareit glossary — UPREITDefinition of the umbrella partnership REIT structure that a Section 721 contribution feeds into.
- FINRA BrokerCheck — Ashley Romiti, CRD# 7636987Registration and disciplinary history. Check any firm or representative before investing.
Links to third-party websites are provided for informational purposes only. GCA 1031 and Concorde Investment Services, LLC do not control and are not responsible for the content of any third-party site, and a link is not an endorsement. IRS and SEC materials describe general rules and do not address any individual’s circumstances — consult your own CPA and attorney.
Verify Ashley Romiti’s registration on FINRA BrokerCheck — CRD# 7636987. Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. GCA 1031 is independent of CIS.