Event Description

Internal Revenue Service Code Section §1031:“No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business, or for investment purposes if such property is exchanged solely for property of like-kind, which is to be held for productive use in trade or business or for investment purposes.”

Learn how §1031 exchanges can help clients defer taxes while preserving investment flexibility. This session explores the essential requirements of a successful exchange, the role of the Qualified Intermediary, and how Delaware Statutory Trusts (DSTs) may serve as replacement property. Participants will gain insight into key tax considerations, including capital gain, depreciation recapture, and Net Investment Income Tax (NIIT), while evaluating the benefits and limitations of DSTs. The course also highlights best practices for collaborating with attorneys, financial advisors, QIs, and DST sponsors to support client outcomes.

Objectives

After this course, participants should be able to:

• Identify the core requirements of a valid §1031 exchange.
• Explain the role of the Qualified Intermediary (QI).
• Describe how a Delaware Statutory Trust (DST) may qualify as replacement property.
• Recognize tax issues including Capital Gain, Depreciation Recapture, & NIIT.
• Evaluate DST advantages, limitations, and suitability concerns.
• Collaborate effectively with the client’s wealth management team (i.e. attorneys, QIs, DST sponsor(s), and financial advisors).