Investment use comes first.

Section 1031 generally applies to real property held for investment or business use. A personal residence or property held primarily for resale does not qualify simply because it appreciates.

“Like-kind” can cover different types of qualifying real estate. The exchange does not have to be a rental house for another rental house.

Coordinate before closing.

For a typical deferred exchange, arrange the qualified intermediary before the sale closes. Identify replacement property within 45 days and complete the exchange by the earlier of 180 days or the applicable return deadline, including extensions.

Your QI must confirm your exact dates, identification rules, and any applicable relief.

Liquidity, with a defined plan for staying.

Evaluate what you could receive after mortgage payoff and closing costs, what market rent looks like, and how long you want to stay.

• Review property value and condition.
• Discuss sustainable rent and the lease term.
• Have your tax adviser evaluate Section 121 eligibility.
• Understand renewal, maintenance, and move-out obligations.

A potential rental with a tenant in place.

Evaluate a genuine investment using supported pricing, market rent, property condition, tenant qualification, and realistic operating costs.

• Review acquisition and rental economics.
• Coordinate exchange structure with your QI.
• Establish a written market-based lease.
• Plan reserves and ongoing property management.

A California rental becomes an Arizona investment.

An investor sells a rental duplex. An Arizona homeowner wants access to equity and prefers to stay.

Planning approach: The investor explores a 1031 acquisition; the homeowner sells and signs a market-rate lease.

Key issue: The investor’s exchange and the homeowner’s Section 121 treatment are independent.

Equity today. A lease for the next chapter.

A long-term Tucson homeowner has substantial equity and wants fewer ownership responsibilities.

Planning approach: Compare net sale proceeds, sustainable monthly rent, and the desired lease term.

Key issue: Age does not create Section 121 eligibility. Affordability and lease terms still need review.

Reinvest some proceeds. Retain some liquidity.

An owner wants another rental but also needs cash outside real estate.

Planning approach: Model a partial exchange and the amount of gain that may be recognized.

Key issue: Cash retained and debt relief can affect tax. Obtain a CPA’s calculation before closing.

An Arizona rental before a possible future move.

An investor wants rental income now and may eventually relocate to Arizona.

Planning approach: Acquire and operate a genuine rental; revisit personal use with advisers when plans change.

Key issue: Neither a two-year rental period nor five-year ownership makes all gain excludable.

From a mixed-use vacation home to a managed rental.

An owner has both rental and personal-use records for a vacation property.

Planning approach: Review fair-rental days, personal use, ownership periods, and the dwelling safe harbor.

Key issue: Documented maintenance days require actual qualifying work; appreciation alone is insufficient.

A home and an income-producing unit.

An owner lives in one unit of a duplex and rents the other.

Planning approach: Evaluate the residence and rental portions with defensible allocations.

Key issue: Basis, depreciation, proceeds, and use history may require separate treatment.

Coordinate the property plan with the family plan.

A property owner is considering an exchange alongside gifting or a trust change.

Planning approach: Have tax and estate advisers review ownership and timing before transfers.

Key issue: Gifting, inheritance, and entity changes can produce different tax and exchange consequences.

A low-rate loan does not decide the structure.

A seller asks whether a wrap or seller-financed transaction could help a buyer.

Planning approach: Compare conventional financing, an approved assumption, and professionally reviewed alternatives.

Key issue: Loan documents and due-on-sale rights still matter, even when payments remain current.

Who we’d like to meet

• Accountants and tax professionals
• Attorneys and estate-planning professionals
• Qualified intermediaries
• Title and escrow professionals
• Insurance professionals
• Financial advisers and DST securities professionals
• Lenders and real estate professionals

How we can work together

Help clients coordinate exchange planning, Arizona property acquisition, sale and leaseback questions, and ongoing property management.

Share your specialty, credentials, service area, and how you would like to collaborate. Applications begin a review; they do not create an approved partnership or guarantee referrals, compensation, or directory placement.