Asset Strategy’s marketplace for Accredited Investors to access Private Capital Programs.

Property Examples:

How Private Capital HQ Works:

We provide Accredited Investors access to alternatives in real estate, energy, and private investments, which include 1031 & 1033 exchanges, 721 UpREITs, Delaware Statutory Trusts (DSTs), Qualified Opportunity Funds (QOFs), Oil & Gas Intangible Drilling Costs (IDCs), investments with Bonus Depreciation as well as Investment Tax Credits (ITCs). All investments are subject to extensive due diligence, but the investor needs to make a thorough assessment if the risk and rewards are right for them. We offer a team of independent professionals with decades of wealth management experience, who have knowledge and access to these alternative investments.

Access is free and only allowed by regulation to Accredited Investors. If you meet this criteria, complete the registration information and you will be contacted by a licensed member of our team to affirm your Accredited Investors status and assist you with your situation. There is no obligation beyond verification.

1031 Exchanges

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What is a 1031 Exchange?

  • A 1031 Like-Kind Exchange allows an investor or business owner to sell investment property and replace it with another property (passive or active ownership) of equal or greater value within a timeframe of 180 days from the date of close using a qualified intermediary, (also called: intermediary, QI, accommodator, or facilitator).
  • If all the criteria are met, the investor can defer taxes on up to 100% of capital gains created from the sale of the original property. Some form of 1031 Like-Kind exchanges have been around since 1921.
  • Please see our DST 1031 Headquarters page for additional background information.

What Types of Property/Properties Will Qualify for a 1031 Like-Kind Exchange?

Properties must be like-kind. This doesn’t mean they have to be the same property type. It means they need to be an investment property to investment property. For example, if you own a duplex or multi-family house, you don’t have to exchange it for another duplex or multi-family. You could exchange your duplex or multi-family into a strip mall or an industrial warehouse. Or if you own raw land, you can exchange it for a commercial building. There are two ways to think about replacement property. If you want to be an active landlord or a passive landlord (if active), then look for an investment property in your local area or comfort zone. If passive, then there are fractional ownership structures that can provide potential for monthly income, be professionally managed, and offer a number of other features. Please reach out to our firm to learn more.

Are There Certain Timelines or Guidelines I Must Follow When Conducting a 1031 Like-Kind Exchange?

  • Yes, the IRS has strict timeframes and guidelines when it comes to conducting and completing a 1031 Like-Kind Exchanges. If you are contemplating a 1031 Like-Kind Exchange we recommend to start speaking with a Qualified Intermediary (QI) sooner rather than later before the close. The timeframe starts on the day you close on your relinquished property. You have 45 days to identify potential replacement properties and another 135 days to acquire the replacement property. So the total time frame is 180 days to complete the whole exchange from start to finish. Again, a good QI will guide you through the process.
  • A QI will also need to receive and transfer the funds. You as the exchanger cannot take constructive receipt of the sale proceeds. If you do the exchange is null and void.

How Many Replacement Properties am I Allowed to Identify in the 45 Day Window?

There are three common types to identify replacement properties with your QI. There is the “3 Property Rule”, “200% of exchange value” and “95% Rule”. Below are some brief descriptions. Your QI will be able to give you a more detailed answer on the below.

  • 3 Property Rule: During the 45-day identification process, you could use this option to identify up to 3 properties. If you do list 3, it does not mean you will have to buy all 3. One reason to use this option is to give you a few back-ups in case your initial deal falls apart.
  • 200% of exchange value: During the 45-day identification process, you could use this option to identify as many properties as you want as long as they don’t exceed 200% of the value of your original property sold.
  • 95% Rule: During the 45-day identification process, you could use this option to identify as many properties as you want. However, you must close on 95% of the value that you identify. Most investors shy away from this option because of the requirement to purchase 95% of the value that is identified.

When Conducting a 1031 Like-Kind Exchange, Do I Have to Pull All the Proceeds Into a Property Replacement or Can I Take Some Money Out of the Exchange?

No, you don’t need to put all the proceeds into the exchange. You can do a partial but you will be taxed on any amount that is not equal or greater in value of the original exchange amount. Also, as a reminder you are able to exchange partially into an active or passive

Useful Forms

Delaware Statutory Trusts (DST)

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What Are The Different Ownership Types of Replacement Properties That Qualify in a 1031 Like-Kind Exchange?

There are a few different paths an exchanger can go down. They first need to decide if they want to be a passive owner or an active owner. If they want to be an active owner, they can look for property locally or nationally and buy that property and continue being an active landlord. If you are looking to become a more passive owner of RE while still completing a 1031 Like-Kind Exchange there are two fractional ownership structures that the IRS has approved. Tennant-in-Common (TICs) and Delaware Statutory Trusts (DSTs) are two passive, fractional ownership structures that the IRS has approved for 1031 exchanges. Please call our firm to hear more.

How Does a DST Work?

A Delaware Statutory Trust (DST) is a type of ownership structure that is under Delaware law. When a DST is properly structured, it will be deemed a grantor trust for federal income tax purposes and the purchaser of the fractional ownership interest in the trust will acquire an undivided share of the asset(s) held by the DST. If all the rules are followed, DSTs are approved to use in a 1031 Like-Kind Exchange.

Are The Benefits of Investing in a DST in a 1031 Like-Kind Exchange Similar to Buying Active Physical Real Estate?

A Delaware Statutory Trust (DST) is a type of ownership structure that is under Delaware law. When a DST is properly structured, it will be deemed a grantor trust for federal income tax purposes and the purchaser of the fractional ownership interest in the trust will acquire an undivided share of the asset(s) held by the DST. If all the rules are followed, DSTs are approved to use in a 1031 Like-Kind Exchange.

Are There Potential Risks Associated with DSTs?

Yes, as with any investment, there are risks associated with it. First off, you need to be an Accredited Investor (SEC Accredited Investor Definition) because of the complex structure of DSTs. These are usually Reg D, illiquid, long-term investments. Like any investment, there is the possibility of the investment losing money, the income stream stopping or decreasing, etc. As always, reach out to our firm to see if a DST is the right fit for you. Investors should review all risks before making an investment.




Do DST Replacement Properties Have a Minimum Investment Typically?

Yes, investment minimums vary for each offering, but typically they are $100,000 for 1031 investors and $25,000 for cash non-1031 investors. Minimum investment amounts are clearly disclosed on our Marketplace and the respective Offering Materials. Investment minimums are set by the offering sponsor. Please contact our firm if you have specific questions on minimum investment amounts.

Is There a Maximum Investment Amount Per Property Replacement Interest Offering?

  • Maximum investments vary depending on the size of the investment and are the discretion of the offering sponsor.
  • For investors with more than $1 million to invest, our firm offers customized 1031 options. Please contact us at 781-235-4417 to discuss your needs.

Qualified Opportunity Zones (OZones)

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What is a Qualified Opportunity Zone? (OZone)

According to the IRS, An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation of authority to the Internal Revenue Service.

  • Opportunity Zones are an economic development tool—that is, they are designed to spur economic development and job creation in distressed communities.



How Were OZones Created?

Opportunity Zones were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017. The first set of Opportunity Zones, covering parts of 18 states, were designated on April 9, 2018. Opportunity Zones have now been designated covering parts of all 50 states, the District of Columbia and five U.S. territories.

How Do OZones Spur Economic Development?

Opportunity Zones are designed to spur economic development by providing tax benefits to investors. First, investors can defer tax on any prior gains invested in a Qualified Opportunity Fund (QOF) until the earlier of the date on which the investment in a QOF is sold or exchanged, or December 31, 2026. If the QOF investment is held for longer than 5 years, there is a 10% exclusion of the deferred gain. If held for more than 7 years, the 10% becomes 15%. Second, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor is eligible for an increase in basis of the QOF investment equal to its fair market value on the date that the QOF investment is sold or exchanged.

What is a Qualified Opportunity Fund? (QOF)

A Qualified Opportunity Fund is an investment vehicle that is set up as either a partnership or corporation for investing in eligible property that is located in a Qualified Opportunity Zone.

When to Qualified Opportunity Zones Expire?

Though Opportunity Zone designations expire at the end of 2028, investors can keep their investments in funds through December 31, 2047 without losing any of the tax benefits, even if the zone loses its eligibility in the interim.

How is Substantial Improvement to a Building Defined?

  • A substantial improvement to the building is measured by the QOF’s additions to the adjusted basis of the building (excluding the land).
  • The QOF is not required to separately substantially improve the land upon which the building is located.
  • To ‘‘substantially improve’’ a property, an O Fund (or subsidiary) must make additions to basis with respect to such property during a 30-month period in the hands of the O Fund (or subsidiary) that exceed the basis at the beginning of the 30-month period.

How are roll-over Capital Gains of partnerships or other pass through entities treated?

    • A partnership may elect to defer all (or part) of a capital gain. If an election is made, the elected deferred gain is not included in the distributive shares of the partners. If the partnership does not elect to defer gain, a partner generally may elect its own deferral with respect to the partner’s distributive share. The partner’s 180-day period generally begins on the last day of the partnership’s taxable year.

    Understanding Tax-Deferred Exchanges

    An Overview

    Top 10 DST 1031 Considerations

    Investment Real Estate Owners

    Investing in the Zone

    Qualified Opportunity Zones (QOZs)

    If You Have Questions

    Don’t hesitate to contact one of our advisors at and we will connect with you at a time that best fits you.

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