BLOG
Video: Can You 1031 Into a REIT?
Common questions we receive from Exchangers include, "Is it possible to Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange into a REIT", "Do QIs facilitate a 721 Exchange?", and "What is the process if I ultimately want to reinvest my 1031 exchange funds into a REIT?"
This educational video breaks down the steps involved when an Exchanger's end goal is to invest their 1031 exchange funds into a REIT. Steps include utilizing a Delaware Statutory Trust (DST) as Replacement Property in a Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange , a holding period of the DST interest, then using a 721 UPREIT to swap the interest in the DST for Operating Partnership (OP) units in a REIT.
Watch this video below to better understand the process, as well as this this article, Can you 1031 Exchange into a REIT?