1030 to REIT

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Jimfromdowntheroad
Posts: 10
Joined: Thu Jan 07, 2021 9:42 am

1030 to REIT

Post by Jimfromdowntheroad »

I will attempt to keep this simple but from what I read, this might not be.

I am looking to sell a rental due to various factors. There are some accumulated loses but not much. We will have to pay capital gains on a few thousand so I was looking to use 1030 to buy in a REIT. I found a methodology that included a DST to an UPREIT. Seems a little complicated for the capital gains. One might even ask why the trouble but since I want real estate as part of my portfolio anyway and I am trying to save a buck where I can, I am hopeful.

I am just looking for a crowdfunded REIT like something with Fundrise (which doesn't do 1030 properties anymore). I did some digging and came up empty.

Does anyone have a simple solution?
MrGreek16
Posts: 28
Joined: Thu Jul 29, 2021 12:38 am

Re: 1030 to REIT

Post by MrGreek16 »

You can 1031 exchange into DST or you can 721 exchange into an upreit (doing this loses your ability to do 1031 exchange again once this is sold or liquidated). The DST allows you to continuously use the 1031 exchange and can be exchange back to another DST or back to physical property ownership again.
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