1031 Exchange Case Studies

See how Deferred helped clients navigate complex closings and complete their 1031 exchanges.

A creek crossing the Oregon coastland

Land preservation · Oregon Coast

Returning Oregon Coastland to Tribal Ownership—via 1031 Exchange

The challenge

After decades of ownership, Alvin wanted to return coastal land to the Confederated Tribes of Siletz Indians and defer the gain. Federal, tribal, and state approvals made the closing date uncertain.

Our approach

Deferred prepared the exchange documents and account in advance, then coordinated with the Tribe’s team, escrow, and counsel so the exchange could move when approvals arrived.

The outcome

The coastland returned to Siletz stewardship for preservation, and Alvin deferred the full capital gain on the approximately $4.9 million sale.

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A Chicago parking garage with the city skyline behind it

Foreclosure · TIC to DST

When Foreclosure Triggered a Paper Gain, a Cashless 1031 Avoided a Six-Figure Tax Hit

The challenge

A Chicago parking-garage investor faced an estimated $1 million gain and $300,000 tax bill from a foreclosure sale that would leave him with no cash proceeds.

Our approach

Deferred coordinated the lender-driven closing with the Delaware Statutory Trust (DST) sponsor and the investor’s tax advisor. A zero-cash-flow DST matched the replacement value and debt, with about $150,000 in new equity from the investor.

The outcome

The investor deferred the estimated $300,000 tax bill and moved from the distressed tenants-in-common (TIC) interest into a DST with a long-term healthcare lease and no new management burden.

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Sale prices, gains, and taxes deferred are approximate, based on the client materials described in each story. Outcomes vary by taxpayer and transaction; consult your tax advisor about your exchange.

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