Navigating a 1031 like-kind exchange can be challenging. With strict deadlines, multiple parties involved, and substantial tax liability at stake, real estate investors need strategic planning—and sometimes a solid Plan B. Options like the Delaware Statutory Trust (DST) or Qualified Opportunity Zone investments can be lifesavers in the right situations.

Real estate investors seeking to minimize capital gains taxes and depreciation recapture can employ two powerful tax strategies – a 1031 Exchange and a Section 121 Exclusion.

While typically used independently due to differing property requirements, there are instances where these strategies can be combined for an even greater tax advantage.