What We Do

Our team has many years of experience in conducting 1031 exchange transactions and endeavors to simplify the process for clients.

What is a 1031 Exchange?

Section 1031 of the Internal Revenue Code provides an effective strategy to defer capital gains tax

  • Exchange real property for like-kind real estate and use all of the proceeds for the purchase of replacement property
  • Like-kind real estate includes business/investment real property (not primary residence)
  • Section 1031 does not apply to the exchange of stocks or bonds

The Delaware Statutory Trust (DST)

In accordance with the Internal Revenue Service’s Revenue Ruling 2004-86, a beneficial interest in a DST, which holds the replacement property, can be considered “like-kind” replacement property in an exchange. A DST may own one or more properties.

The rights and obligations of investors in a DST will be governed by the DST’s trust agreement. Typically, investors have limited voting rights over the operation and ownership of any properties owned by the DST. In addition, the trustees of the DST will be entitled to certain fees and reimbursements, as set forth in the applicable trust agreement.

Alternative Investments Experience

Great Point Capital, LLC offers many alternative investments, including Delaware Statutory Trusts (DSTs). DSTs are real estate based securities that can serve as the like-kind recipient for a 1031 Exchange. Alternative investments products offered also include Private Placements under Regulation D of the Securities and Exchange Act, such as private Real Estate Investment Trusts and Opportunity Zone Funds.

Active DST Subscription Monitoring

GPC actively manages the subscription status of the DSTs on its platform. This is important as you or your clients identify potential recipients of the 1031 proceeds. We work with you through the entire process as you identify the DSTs that are suitable for you while working with the sponsors to monitor how fully subscribed they are.

Passive Income & Passive Loss

Passive Income

The income from a business in which the individual does not regularly and materially participate.

Passive Loss

Any loss from a business in which the individual does not regularly and materially participate. Passive losses can be used to offset only passive income and not wage or portfolio income*.

*Portfolio Income: The income from interest, dividends and other nonbusiness investments.

Ready to Invest?

We are sure you have questions - don't hesitate to reach out to us so we can help guide you through the 1031 and DSTs.