Property Sellers

Selling an investment property? Defer the tax and stay invested.

By Gerald F. “Jerry” Baker, III · Updated July 2026

When you sell appreciated investment real estate, federal capital-gains tax and depreciation recapture can take a large share of your proceeds. A properly structured 1031 exchange lets you defer that tax and reinvest the full amount into passive, institutional-quality real estate.

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Is this you?

  • You're facing a capital-gains and depreciation-recapture bill that could consume a quarter to a third of your gain.
  • You want to stay invested in real estate, but not start over with another hands-on property.
  • You're on the clock — a 1031 exchange requires identifying replacement property within 45 days and closing within 180.

How Baker 1031 helps

We help you exchange out of the property you sold and into fractional interests in professionally managed real estate, so your equity keeps working without a taxable event. You review vetted options; we coordinate the timeline with your qualified intermediary, CPA, and attorney.

  • 1031 exchange into Delaware Statutory Trusts (DSTs) for hands-off, diversified ownership across sectors and regions.
  • 721 UPREIT exchanges for a path into an operating partnership and eventual REIT flexibility.
  • Opportunity Zone funds as an alternative deferral route when a 1031 isn't the right fit.
The clock starts at your sale: 45 calendar days to identify replacement property and 180 days to close. Line up a qualified intermediary before you sell — you cannot touch the proceeds and still defer.

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

How much tax can a 1031 exchange defer?

A 1031 exchange can defer the federal capital-gains tax, the 3.8% net investment income tax where it applies, depreciation recapture (taxed up to 25%), and state tax on the gain — provided you reinvest the proceeds and replace the debt.

Do I have to reinvest all of the proceeds?

To fully defer the tax, you generally must reinvest all net proceeds and replace the debt on the property you sold. Cash taken out (“boot”) is taxable up to the amount of your gain.

What can I exchange into?

Any like-kind real property held for investment, including fractional DST interests that hold institutional assets anywhere in the country. These offerings are available only to accredited investors.

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.

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