For investors leveraging the power of a 1031 Exchange, identifying replacement property isn’t just an administrative box to check—it’s the linchpin of preserving your tax-deferral strategy. Here’s what every investor needs to know about the identification rules to stay compliant and maximize value. Why Identification Matters Under IRC §1031, investors must identify potential replacement properties […]

If you’re navigating a 1031 Exchange, understanding which closing costs could trigger a taxable event is not just helpful—it’s critical to preserving the full value of your deferral. Many investors incorrectly assume all closing costs are covered under the 1031 umbrella. While standard selling costs such as broker commissions, title insurance, and escrow fees are […]

Most savvy real estate investors know the basic rule of a 1031 Exchange: reinvest all your equity and maintain or increase your debt load to defer capital gains taxes. But what if you want to keep some cash on the sidelines? Whether it’s for paying off other debts, funding a child’s college education, or simply […]

If you’ve ever initiated a 1031 Exchange and later had second thoughts—or encountered unforeseen circumstances—you may have wondered: Can I just take my money back and pay the taxes? Unfortunately, when it comes to early release of exchange funds, the IRS takes a hardline stance. The rules are clear, and the exceptions are few. Why […]

Many real estate investors eyeing the benefits of a 1031 Exchange often wonder: Can my second home or vacation property qualify? The short answer is: not usually—but there are strategic exceptions that can turn a “no” into a “yes.” Understanding the 1031 Exchange Under IRS Code Section 1031, real estate held for productive use in […]

If you’re in the middle of a 1031 exchange when disaster strikes, do you lose your tax-deferral benefits? Thankfully, not always. The IRS provides relief through disaster-related deadline extensions, but only for those who meet strict qualifications. Let’s break down what you need to know to stay compliant and preserve your investment gains—even in a […]

One of the most common misunderstandings in 1031 exchanges is the definition of “like-kind” property. Many investors mistakenly believe they must replace a single-family rental with another single-family rental. The truth is much broader—and more flexible. In 2002, the IRS issued Revenue Procedure 2002-22, clarifying that a Tenants in Common (TIC) interest qualifies as “like-kind” […]

For real estate investors using the powerful tool of a 1031 Exchange, avoiding tax pitfalls is essential. One of the most misunderstood and commonly misapplied components is the Related Party Rules. These IRS provisions can instantly disqualify your exchange if not handled with precision. Let’s unpack what these rules really mean, where investors often go […]

When it comes to leveraging the tax-deferral benefits of a 1031 Exchange, one question consistently arises: How long must I hold a property for it to qualify as “held for investment or business use”? The answer, like much of tax law, isn’t black and white—but understanding the nuance can save you serious dollars. The Myth […]

Delaware Statutory Trusts (DSTs) blend the best of two worlds: like-kind investment exposure for 1031 exchanges and a fully passive ownership experience. ✅ Fully 1031-Compatible, Completely Passive Because DST shares are treated by the IRS as “like-kind” property, they qualify for 1031 tax deferral—but with no landlord headaches. Ownership responsibilities—including leasing, maintenance, and financing—are handled […]

1. Turnkey Investing DSTs let you participate in large-scale commercial properties (e.g., multifamily, industrial, healthcare) with relatively small capital—often starting at $100K–$200K. Instead of managing leases, maintenance, and upkeep, you collect reliable passive income. 2. Strict “Yes/No” Structure Under IRS rules, DST sponsors must follow a passive structure—no renegotiation of loans, no property reinvestment, no […]

A Delaware Statutory Trust (DST) is a powerful tool for real estate investors seeking passive income, portfolio diversification, and tax deferral through a 1031 exchange. Recognized by the IRS as a qualified replacement property, a DST allows multiple investors to co-own fractional interests in large institutional-grade real estate assets — without the headaches of active […]

Presented by TD Commercial Group – Your Net Lease Investment Partner Investors looking to maximize gains and defer capital gains tax know that a 1031 Exchange can be a game-changer. But timing and accuracy are critical. At TD Commercial Group, we’ve put together a step-by-step checklist to guide you through a smooth and successful 1031 […]

🔁 What is a Reverse Exchange? A Reverse Exchange flips the traditional 1031 exchange model. Instead of selling your relinquished property first, you acquire the replacement property before transferring the old one. This works through an Exchange Accommodation Titleholder (EAT)—a third party who “parks” the title to your new property temporarily until your old property […]

Savvy investors know the 1031 Exchange is one of the most powerful tools in commercial real estate — enabling tax deferral on capital gains and opening the door to portfolio growth and diversification. But not all 1031 Exchanges are created equal. Below is a breakdown of the four primary 1031 Exchange structures, including their strategic […]

Unlocking Wealth Through Structure, Timing, and Planning Successful real estate investing isn’t just about finding the right deal—it’s about keeping more of what you earn. Strategic tax planning is one of the most powerful levers investors can pull to maximize long-term wealth. Below is a breakdown of the top tax strategies every serious investor should […]

A properly executed 1031 exchange is one of the most powerful tools for building long-term real estate wealth. But it’s also one of the easiest tax strategies to mess up — and when investors make mistakes, the consequences can be steep: taxable gains, penalties, and lost opportunities. Here’s a breakdown of the most common 1031 […]

If you’ve ever thought, “I’d love to live in one of my investment properties someday,” you’re not alone—and you’re not out of luck. Under the right strategy, the IRS allows you to legally convert a 1031 exchange replacement property into your personal residence, all while preserving the massive tax-deferral benefits of the original exchange. But […]

Navigating a 1031 exchange can unlock tremendous tax benefits—but it also presents several critical pitfalls that can derail an otherwise strategic investment move. One of the most misunderstood—and costly—steps in the process is identifying replacement properties. This article reveals the most common mistakes investors make during the identification phase, how to avoid them, and what […]

🚦 What Are Qualified Closing Costs? Qualified closing costs are expenses the IRS allows to be deducted from your sale proceeds without jeopardizing your 1031 tax deferral. These costs are directly tied to the transaction and include: Title insurance fees Escrow fees Recording fees Broker commissions Transfer taxes Legal or tax advisory fees related to […]

FOR SALE: Dollar General “Plus” – La Feria, TX 10,566 SF | 2023 Build | NNN Lease w/ Rental Increases | 36,000 Population (5-Mile Radius) TD Commercial Group is pleased to exclusively present a rare opportunity to acquire a brand new Dollar General “Plus” size prototype located in the high-growth Rio Grande Valley region of South Texas. Built in […]

There are only 3.6 years left on the lease (11/30/28), but there are 4, 5 – year option periods remaining. If AutoZone wants, they could be here all the way out through 11/30/58. There could be an opportunity in the next 2 years to make a deal with AutoZone and get them to sign an […]

Contact Shane Smith: 605-515-4564 [email protected] Download the PDF Here

NNN investment claims to be a smart decision in the modern real estate world. However, one question always naturally appears: how to get the most out of the deal? Obviously, hassle-free management, tenant creditworthiness, and long-term occupancy promote escalated income. Even though these benefits are attractive, you can fully capitalize on them only by having […]

The goal of any investor is to make a profit. Real estate can be a great tool if you know how to use it correctly. Net lease agreements are very popular for a reason. They allow you to earn income without unnecessary hassle. However, this type of lease is not without its risks. Beginning investors […]