As you likely know, the Section 1031 tax-deferred, like-kind exchange is one of the greatest wealth-building mechanisms for real estate investors.
With Section 1031, you can avoid taxes on all your property upgrades during your lifetime and then pass the property to your heirs when you die. The heirs receive the property with a step-up to fair market value, and they can likely sell the property and pay no taxes.
But what if you want to get off the landlord bandwagon? There are options. For example:
You could use an UPREIT, as we explained in Cashing Out Real Estate Profits without Section 1031.
You could invest in an opportunity zone fund, as we explained in Section 1031 Exchanges vs. Qualified Opportunity Zone Funds: Which Is Better?
You could invest in a Delaware statutory trust as we explain in this article. ... Log in to view full article.