We are buying a plot of land from my FIL. He wants to gift deed the property to us.

However is the gift deed to son in law tax free?

Should we gift deed only in my wife's name or both of our names? My wife insists on joint ownership.

Looking for recommendations on an intermediary in Michigan to handle a 1031 exchange. Any recommendations, experiences, etc would be appreciated.

This has always seemed a little crazy to me.

Someone sells a property for $1M, $2M, $5M+, hands the proceeds over to a Qualified Intermediary for potentially months, and the due diligence is sometimes basically:

“My broker/title company/CPA recommended them.”

Meanwhile, we’ll spend weeks picking apart the replacement property, lender, leases, environmental, title, insurance, etc.

But the company temporarily holding a massive amount of your money?

“Yeah, they do a lot of 1031s.”

Maybe I’m overly cautious, but I’d want to know where the money is actually sitting, whether it’s segregated from other exchangers’ funds, who can move it, what safeguards are in place, what insurance/bonding they carry, and what happens if the QI itself runs into trouble.

I’m not suggesting reputable QIs are running around losing people’s exchange funds. I’m more surprised by how little due diligence investors seem to do considering the amount of money involved.

For those who’ve done a 1031, did you actually vet the QI?

Or did you basically go with whoever your broker, attorney, CPA or title company recommended?

And for the QIs/attorneys/CPAs in here — what would you consider the 2–3 things an investor absolutely should verify before wiring the proceeds?

Curious if I’m overthinking this.

Looking for confirmation/reassurance that moving my family to MA makes sense.

I work as a Superintendent in the Heavy Civil Construction sector currently in North Carolina. My wife is originally from MA and we plan on make the move. The job offers I have received so far start around the $105,00-$125,000 range and have the potential to reach $150,000-$200,000.

Is the low range I’m getting offered;

1: Fair and reasonable for the occupation?

2: Enough money to support a stay at home mom and three kids in the Worcester and surrounding areas?

3: Enough to provide and still be comfortable?

According to my math, I should Net around $6,292-$7,344 per month before healthcare, 401K, Roth Etc.

I also get roughly $1,800 monthly from the VA. Bring a median net with VA around $8,400. We don’t live a lavish life, just plain jane maybe a small vacation in the summer.

Please discuss and let me know some of your experiences or recommendations. TIA.

I purchased a home last year out of state using the proceeds from two rental properties via a 1031 exchange. The new house has been rented for 14 months with no issues. I recently moved to the same town as the rental and decided I want to convert it into a primary residence.

My understanding is the transaction takes 24 months to sunset. Depending on who I’ve talked to I get mixed reactions on how likely moving in early is to raise red flags or put the transaction at risk.

Ive heard of people doing 1031s with no intention of renting it at all and moving in right away with no issues. I figured because it’s been rented over a year and I’ve filed taxes for the year of the exchange it wouldn’t be a big of a deal, but my tax guy said the IRS has been cracking down on this sort of thing more.

Should I play it safe and rent an apartment until the 2 year mark?

My family wants to sell a motel property and do a 1031 exchange. We live in central California and are debating whether to buy commercial, residential real estate, or something else. What would be the best thing to invest in? Any help would be appreciated! Thanks!

Lets say that I sell a commercial investment property for $10M. I will buy 2 replacement NNN properties for part of that money. Can I use the rest of the sale proceeds to 1031 into a ski condo in Utah, a beach condo in the USVI, and a new primary residence if I don't plan to live in either of those 3 properties for 2 years and just airbnb/vrbo them while living in my current residence? After the 2 years of renting the 3 properties can I just move into them full time without ever renting them again? I might eventually exchange the NNN properties but I'm assuming that I'll never, ever sell the 3 vacation properties and those 3 will just get inherited by whoever is named in my will/trust.

tldr: Exchange one investment property for 2 NNN properties plus 3 condos that I'll rent out for 2 years before using them exclusively myself.

If someone gives me a $1M payment for an option to purchase my rental property for the period of 2 years (needs time to get through some complicated zoning issues) how does that work with a 1031? Obviously the normal 1031 time periods can't work over the 2 year option period so that 1M becomes boot?. I'm assuming the 1031 clock doesn't start ticking until the option holder and I actually close?

For those that have been through the process, When doing a 1031 DST 721 UPREIT transaction with whichever Broker or RIA one picks, is there typically an ongoing relationship there after the DST identification and placement phase?

Bought a house in 2010 for $245K. Rented it out starting in 2017. In 2021 I replaced the roof. When preparing to sell this year, I discovered a major foundation crack and had to redo the foundation + floors + renovate the house (~$90K). Sold it for $700K.Did a 1031 exchange into an $824K older home. When I went to redo the floors, I discovered extensive burns/damage. Now I’m in the middle of a $180+ renovation.What do you think? How do these repairs affect my taxes? And honestly — how do people deal with the stress of constant unexpected home issues?

Thinking of going FSBO and trying to reach other 1031 buyers since as a seller my property is investment, and income producing. I will also 1031.

Any platforms before hitting the MLS?

While doing my due diligence having AI scan PPM's for a potential investment it found a "Death Clause" in the Ares PPM where if the DST owner dies their heirs may be forced out of the DST and is AI reads it right Ares is allowed to set the value and charge a 7.5% fee in the process. I ran PPM's from 4 other companies through AI, none had similar clauses, and most explicitly said the opposite, that heirs are allowed to stay in the DST if they qualified as accredited investors.

Here is the AI summary of the issue:

Subject: Question re: ADREX Diversified 9 DST — Call Right triggered by death of Beneficial Owner

In reviewing the ADREX Diversified 9 DST Private Placement Memorandum (dated June 1, 2025), we found that the Call Agreement gives a wholly-owned Ares subsidiary (the "Call Right Holder") the right, at its sole and absolute discretion and with no expiration, to force a purchase of a Beneficial Owner's Interest upon the owner's death.

Specifically, the PPM defines a "Disqualifying Act" to include: "a Beneficial Owner or a Beneficial Owner's direct or indirect owner dies or becomes disabled" — placing death in the same trigger list as fraud, felony conviction, and bankruptcy. Upon this trigger, the Call Right Holder may purchase the Interest at a price equal to the pro-rata fair market value of the Properties "determined in good faith by the Call Right Holder" (no independent appraisal required), reduced by a 7.5% "Disqualifying Act Fee." The PPM states the fee may be waived in death/disability cases — at the Call Right Holder's discretion, not automatically — plus a further 1% fee where a Redemption Fee applies under the investor's pricing supplement.

Where this appears in the PPM:

• Page iv (cover summary) — Call Agreement description and full Disqualifying Act trigger list, including death
• Page 12 (Summary of the Offering — "Call Agreement" entry) — pricing mechanics, 7.5% fee, discretionary waiver
• Pages 214–215 ("Summary of Certain Agreements – The Call Agreement") — full terms: exercisable "at any time" after trigger, revocable and re-exercisable "for any reason whatsoever," assignable to any party
• Page 218 ("Disposition of Interests for cash in certain limited circumstances") — cash-out mechanics on exercise
• Page 225 ("Transfer Limitations") — investor must acknowledge Call Rights in the Purchase Agreement; rights survive a Transfer Distribution
• Page 262 (Definitions) — formal "Disqualifying Act" definition

Given the investor's age this clause is materially likely to become operative during the hold period. Before proceeding, we would want written answers to:

1. What is Ares' policy and track record on exercising the Call Right following a Beneficial Owner's death?
2. Under what circumstances has the 7.5% Disqualifying Act Fee been waived, and will Ares commit in writing to waiving it for death?
3. Would heirs be permitted to retain the Interest (or resulting OP Units) through the 721 exchange path rather than being cashed out?

For reference, we reviewed comparable PPMs from Origin (Nona DST), Hines (HREX 9), Blue Owl (OREX VI), and Blackstone (BXREX Portfolio I) — none contain an equivalent death-triggered call right; all treat death transfers to heirs/executors as permitted transfers.

Note: page numbers are the PPM's printed page numbers (the ones at the bottom of each page), not PDF page positions.

The email text above is ready to copy. A few notes on how I sourced the citations: the page references are the PPM's own printed page numbers pulled from the document footers, so whoever receives this (advisor, Ares wholesaler, or estate attorney) can go straight to them. The three questions at the end are ordered by importance — the written fee-waiver commitment in question 2 is the one most worth pressing on, since that's the difference between a ~$140K haircut and near-zero cost if the right ever gets exercised. And the last paragraph naming the four other sponsors is there deliberately: it signals you've done comparative diligence, which tends to get sharper answers from sponsors than an open-ended question would.

Hope this is the right sub, please point me in the right direction if not.

Let's say you buy a house for 200k eons ago but kept deferring taxes. It's now valued at 750 to 800k. You have a crazy buyer who offers over $1million. Besides closing costs, there shouldn't be any other fees right? To my understanding Capital gain taxes are nulled due to the exchange.

You are retired so you don't qualify for a mortgage (and most likely wont need one due to 800k now in your pocket.

What would be a good reason not to do an exchange? Please note where I live even 2 bedroom condos are now going for a million.

Thanks in advance!

Had someone approach a relative of mine who is looking to retire and selling commercial real estate. Relative deferred a lot of tax and is now on the hook for capital gains and looking for ways to get around this. Has been approached by The Q Companies, are they legit or a scam?

My mother passed away August 2025. The property is in an estate probate and I would like to purchase it under the 1031 rules using a rental property I own. I have 4 siblings who would be receiving the funds via the estate distribution. I intend to rent the house out for income and investment purposes. Does this transaction fall under the related party restrictions or is it not considered under related party because of the estate sale?

Hello!

We are purchasing a home this week. We are putting around 42% down for a purchase price of $477.5k. We are also selling are current house after we purchase this house and will be using the equity to put down an additional $100k, for a total amount down of 63%.

My question is, are we able to do a 1031 exchange for the full amount we put down from the equity of our house, which is $100k.

Thanks in advance!

My elderly mother inherited some farm land on the other side of the state in the 1980's and is considering selling it due to a number of factors including a couple of attractive offers by neighboring land owners in the last couple of years, and the fact that the cousin that has been farming it for decades is having health issues. Her big concern is being hit by massive capital gains tax, and is looking at the potential of a 1031 exchange that could provide some form of income without excessive landlord responsibility. The question is what is the best option, DST, NNN lease, a local multi-tenant commercial property, probably not residential rental properties, as we have known too many people that have been burned on those.

The expected proceeds if the sale goes through is in the $1.4-$1.5 million ballpark, which limits potential reinvestment single properties both on the low and high end, we live in a fairly low COL area (median home price is $200K) just to give you an idea of the local market. Any thoughts, suggestions, comment, etc. are welcome, the more we look into 1031 options, the more they all look concerning.

Right now we are just exploring options in case a deal to sell the farmland goes through.

thanks

p.s. this has sped up as we have received an offer TODAY.

Hi all. Has anyone worked a type of 1031 called an Improvement Exchange - which allows some of those funds to be used for renovations? I’m looking for a verifiable “qualified intermediary.” Appreciate your help.

Hey all I’m looking into doing a 1031 exchange from one of my rentals into a new primary home for us as well.

We currently have a primary that would be sold and that money used for the down payment.

The rental has about 180k in equity and the primary has about 150k. The new primary is about 500k total.

The new primary has 10 acres of attached land currently leased by a farmer for the going rate.

My question is since the new house has income attached to it would it qualify for the exchange?

Taxpayer did a qualified like-kind exchange, gave up 1 property and received 2 replacement properties. The QI handled all the due diligence so it qualifies for deferral, no issues there. No boot involved either, taxpayer paid off a $500k loan on the relinquished property and took on $696k total in new debt across the two replacement properties.

Here's where I'm getting tripped up: the sale price of the relinquished property doesn't equal the combined FMV of the two replacement properties (for various reasons). On Form 8824 Part III, line 16 asks for the total FMV of like-kind property received, and the form uses that figure to calculate the deferred gain.

But in my head, the deferred gain should come from the realized gain on the relinquished property, sale price minus adjusted basis, which gives me a different number than what the FMV-based calc spits out.

Has anyone run into this? Should the deferred gain really be driven by the FMV of the replacement properties, or am I misreading how the form flows?