Real-world examples of various 1031 exchange structures and strategies.
Setup: Investor owns a $2M apartment complex with $800K equity. Sells on June 1. QI receives $1.2M in net proceeds. 45-day deadline: July 17. 180-day deadline: November 28.
Outcome: Exchanges into a $1.5M commercial property. Defers $600K+ in capital gains and ALL accumulated depreciation.
Setup: Investor finds ideal replacement property but doesn't have liquidity yet. Uses an Exchange Accommodation Titleholder (EAT) to purchase the replacement property first.
Structure: EAT holds title and leases to investor. Investor sells relinquished property within 180 days. EAT transfers title to investor at closing.
Setup: Three partners in a partnership want different outcomes. Partnership distributes TIC interests proportionally. Withdrawing partner cashes out. Remaining partners individually exchange their TIC interests.
Result: Non-taxable distribution. Each remaining partner defers ALL gain on their TIC exchange.
Setup: Investor owns $3M rental property but is retiring. Exchanges proceeds into three DST beneficial interests.
Outcome: Monthly distributions (~5-6% yield), zero management, deferred gains and depreciation.
For interactive scenario builder and personalized analysis, visit the Scenarios page.