Selling business real estate? Defer the real estate gain.
When you sell a business or the building it operates in, the real-property portion of the sale can qualify for a 1031 exchange, letting you defer a substantial tax bill and redeploy that equity into passive, income-producing real estate.
Request Investment AccessIs this you?
- You're selling your company or its real estate and facing a large gain on the building.
- You want to keep the real estate equity invested without taking on another active property.
- You need the exchange coordinated alongside a complex business-sale timeline.
How Baker 1031 helps
Real estate held for business use is like-kind property for 1031 purposes, even when the operating business is sold separately. We help you exchange the real property into fractional interests in professionally managed real estate and coordinate with your deal team and qualified intermediary.
- Separate the real estate from the business sale and 1031-exchange the property into passive DST interests.
- Redeploy equity into diversified, income-producing real estate without active management.
- Coordinate timing with your M&A advisor, CPA, and attorney to preserve the exchange.
Why work with Baker 1031
- Independent & conflict-aware. An independent family firm — we help you compare offerings across sponsors, not sell a single product line.
- Institutional-quality access. Vetted DST, 721, mineral royalty, and Opportunity Zone offerings for accredited investors.
- Guidance through the deadlines. We coordinate with your qualified intermediary, CPA, and attorney to keep your 45- and 180-day windows on track.
Frequently asked questions
Can I 1031-exchange the building my business operates in?
Yes, if the real property was held for business or investment use. The building can be exchanged into like-kind real estate even when the operating business is sold in the same transaction, provided the deal is structured correctly.
Does the whole sale qualify?
No. A 1031 exchange applies only to the real property. Goodwill, equipment, inventory, and the business itself are treated separately and are generally taxable.
How early should I plan the exchange?
As early as possible. Engaging the qualified intermediary and identifying replacement property before closing is essential, especially within a complex business sale.
Gerald F. “Jerry” Baker, III — Founder & Managing Principal, Baker 1031 Investments · FINRA Series 22 / 63 · SIE. Read full bio →
This page is educational and is not investment, tax, or legal advice, or an offer to sell or a solicitation to buy any security. Offerings are available only to accredited investors and are made solely through a sponsor’s private placement memorandum. Securities are offered through Aurora Securities, member FINRA/SIPC. Real estate investments involve risk, including possible loss of principal. Consult your own CPA and attorney regarding your circumstances.