# Learn: 1031 exchange and DST guides

> Plain-English guides to 1031 exchanges, Delaware Statutory Trusts, 721 exchanges, 1033 conversions, and the tax rules around them.

Source: https://baker1031.com/learn


## 1031 Exchanges

- [1031 Exchange Alternatives: 9 Ways to Defer, Spread or Pay Tax](https://baker1031.com/learn/1031-exchange-alternatives.md): 1031 exchange alternatives compared: DSTs, 721 exchanges, installment sales, deferred sales trusts, Opportunity Zones, charity and paying the tax.
- [1031 Exchange Arizona: State Tax, Recording Rules and DSTs](https://baker1031.com/learn/1031-exchange-arizona.md): Arizona follows the federal 1031 deferral and taxes gains at a flat 2.5%, with a 25% subtraction for some long-term gains. See the rules, forms and math.
- [1031 Exchange Rules by State: Capital Gains Tax and Withholding](https://baker1031.com/learn/1031-exchange-by-state.md): 1031 exchange rules by state: a 50-state and DC table of capital gains tax rates, nonresident withholding at closing and rules like California's FTB 3840.
- [1031 Exchange California: State Tax, Withholding and Clawback](https://baker1031.com/learn/1031-exchange-california.md): How a 1031 exchange works in California: state tax on gains, Form 593 withholding, the FTB 3840 clawback filing, and out-of-state and DST exchanges.
- [1031 Exchange Colorado: State Tax, 2% Withholding and Forms](https://baker1031.com/learn/1031-exchange-colorado.md): How a 1031 exchange works in Colorado: the 4.4% state tax it defers, 2% nonresident withholding on DR 1083, boot, the TD-1000 and buying out of state.
- [1031 Exchange Costs: What You'll Pay and What Creates Boot](https://baker1031.com/learn/1031-exchange-costs-and-fees-explained.md): What a 1031 exchange costs, line by line: QI, title, transfer tax and loan fees, which costs exchange funds can pay without boot, and how to read DST fees.
- [1031 Exchange Documents: A Checklist and Form 8824 Guide](https://baker1031.com/learn/1031-exchange-documents-checklist.md): The 1031 exchange documents to gather at sale, in the 45 days and at purchase, how to fill out IRS Form 8824 line by line, and how long to keep records.
- [1031 Exchange Florida: No State Income Tax, but Real Costs](https://baker1031.com/learn/1031-exchange-florida.md): How a 1031 exchange works in Florida: no state income tax on the gain, doc stamps on deeds, property tax resets, the California clawback and FIRPTA.
- [Drop and Swap: 1031 Exchanges for Partnerships, LLCs and Trusts](https://baker1031.com/learn/1031-exchange-for-partnerships-trusts-and-llcs.md): How a drop and swap works, plus the same-taxpayer rule for LLCs and trusts, related-party limits, divorce, and what partners can do when they disagree.
- [1031 Exchange Nevada: Tax Rules, Transfer Tax and QI Licensing](https://baker1031.com/learn/1031-exchange-nevada.md): A 1031 exchange in Nevada still defers federal tax. Learn Nevada's transfer tax rates, QI licensing law, and the California rules that follow many sellers.
- [1031 Exchange New York: State Tax, Form IT-2663 and Transfer Tax](https://baker1031.com/learn/1031-exchange-new-york.md): How a 1031 exchange works in New York: the 2026 state rates, Form IT-2663 for nonresident sellers, transfer and mansion taxes, and out-of-state swaps.
- [1031 Exchange Oregon: Tax Rates, Withholding and Form OR-24](https://baker1031.com/learn/1031-exchange-oregon.md): Oregon taxes gains up to 9.9%, withholds from nonresident sellers and tracks exchanges into other states on Form OR-24. See how an Oregon exchange works.
- [1031 Exchange Depreciation: What Restarts and What Carries Over](https://baker1031.com/learn/1031-exchange-restarting-depreciation.md): 1031 exchange depreciation, explained simply: which part of your basis keeps the old schedule, which part starts fresh, the election out, and DSTs.
- [1031 Exchange Rules and Timeline: What the IRS Requires](https://baker1031.com/learn/1031-exchange-rules.md): The 1031 exchange rules in plain English: like-kind real property, the 45- and 180-day deadlines, qualified intermediaries, debt, boot and Form 8824.
- [1031 Exchange Texas: No State Income Tax, What Still Applies](https://baker1031.com/learn/1031-exchange-texas.md): Texas adds no state income tax to a 1031 exchange, but federal tax, franchise tax, property tax and other states' rules still apply. See how it works.
- [1031 Exchange Utah: The 4.45% Rate, Nonresidents and Moves](https://baker1031.com/learn/1031-exchange-utah.md): A 1031 exchange in Utah defers federal and Utah tax on your gain. See the 2026 flat rate, nonresident filing, LLC withholding and out-of-state swaps.
- [1031 Exchange Washington: REET, Capital Gains Tax and DSTs](https://baker1031.com/learn/1031-exchange-washington.md): A 1031 exchange in Washington defers federal tax, but REET is still due. See how the state capital gains tax, REET and the 2028 income tax affect a sale.
- [1031 Exchange Identification Rules: 3-Property, 200% and 95%](https://baker1031.com/learn/1031-identification-rules.md): 1031 exchange identification rules made simple: the 3-property, 200% and 95% tests, what a valid notice says, how to revoke it, and using DSTs as backups.
- [Is the 1031 Exchange Going Away? What the Law Says in 2026](https://baker1031.com/learn/is-the-1031-exchange-going-away.md): Is the 1031 exchange going away? What the 2017 and 2025 tax laws changed, what Treasury has proposed, and how to plan around 1031 exchange changes.
- [Like Kind Property: What Qualifies for a 1031 Exchange](https://baker1031.com/learn/like-kind-property.md): Like-kind property for a 1031 exchange: what counts as real property, what doesn't, and how land, farms, hotels, dealer lots and multiple properties work.
- [Partial 1031 Exchange: How Boot From Cash and Debt Is Taxed](https://baker1031.com/learn/partial-1031-exchange-boot.md): A partial 1031 exchange taxes boot: cash you keep and debt you don't replace. Learn the netting rules, which gain is taxed first, and worked examples.
- [Qualified Intermediary: How to Choose One for a 1031 Exchange](https://baker1031.com/learn/qualified-intermediary.md): What a 1031 qualified intermediary does, who can't serve, how your money should be held, what past QI failures teach, and the questions to ask first.
- [Reverse 1031 Exchange: How Buying Before You Sell Works](https://baker1031.com/learn/reverse-1031-exchange.md): A reverse 1031 exchange lets you buy before you sell. Learn the Rev. Proc. 2000-37 rules, the 5-, 45- and 180-day deadlines, costs, and financing traps.

## Delaware Statutory Trusts

- [Accredited Investor Requirements: Who Qualifies and How](https://baker1031.com/learn/accredited-investor.md): Who counts as an accredited investor under SEC Rule 501(a): income, net worth, licenses, trusts and LLCs, how verification works and 2026 SEC proposals.
- [1031 Debt Replacement: DST Loans, Leverage and Zero-Coupon DSTs](https://baker1031.com/learn/dst-debt-and-leverage.md): 1031 debt replacement explained: how a DST loan can replace your mortgage, leveraged vs. all-cash DSTs, the LTV you need, and how zero-coupon DSTs work.
- [DST Fees and Returns: Load, Ongoing Costs and What You Earn](https://baker1031.com/learn/dst-fees-and-returns.md): DST fees explained: the upfront load, ongoing and exit fees, and how they shape DST returns, from distribution yield to total return, with sample math.
- [Can You 1031 Out of a DST? DST Full Cycle and Exit Options](https://baker1031.com/learn/dst-full-cycle-and-exit.md): Yes, you can usually 1031 out of a DST when it sells. Learn the DST full cycle, hold periods, how to replace the DST's debt, 721 roll-ups and cash-outs.
- [Delaware Statutory Trust (DST): A Complete 1031 Guide](https://baker1031.com/learn/dst-guide.md): How a Delaware Statutory Trust works in a 1031 exchange: the IRS rules, the seven limits, master leases, debt, fees, exits, taxes, risks and who it fits.
- [DST Properties for Sale: How to Find and Compare DST Listings](https://baker1031.com/learn/dst-properties-for-sale.md): DST properties for sale aren't public listings. Learn how DST listings work, who can access them, minimums, and how to compare them for a 1031.
- [DST Property Types: Multifamily, Industrial, Storage and More](https://baker1031.com/learn/dst-property-types.md): DST property types explained: how multifamily, industrial, net lease, self-storage, medical, hotel and other DSTs earn income, and the risks of each one.
- [Delaware Statutory Trust Pros and Cons for 1031 Investors](https://baker1031.com/learn/dst-pros-and-cons.md): Delaware Statutory Trust pros and cons for 1031 investors: passive ownership, diversification and low minimums vs. illiquidity, fees and limited control.
- [Delaware Statutory Trust Risks: What Can Go Wrong in a DST](https://baker1031.com/learn/dst-risks.md): Delaware statutory trust risks explained: illiquidity, tenant loss, debt, sponsor and reserve risk, with data from the 76 DST offerings I track.
- [DST Tax Reporting: Schedule E and Depreciation Explained](https://baker1031.com/learn/dst-tax-reporting-depreciation-and-pass-through-income.md): How DST tax reporting works: the grantor letter instead of a K-1, Schedule E, carryover-basis depreciation, state returns, passive rules, NIIT and 199A.
- [1031 Exchange Triple Net Lease Properties: NNN vs. DST](https://baker1031.com/learn/dst-vs-nnn.md): How 1031 exchange triple net lease properties work: what NNN means, net lease cap rates, fee simple vs. fractional ownership, and NNN vs. DST trade-offs.
- [DST vs. REIT: 1031 Eligibility, Liquidity and Taxes](https://baker1031.com/learn/dst-vs-reit.md): Compare DSTs, listed REITs and non-traded REITs for a 1031 exchange: ownership, liquidity, tax reporting, fees and the possible 721 exchange path.
- [DST vs TIC: How Tenants in Common Compare in a 1031 Exchange](https://baker1031.com/learn/dst-vs-tic.md): DST vs TIC for a 1031 exchange: deeded title vs. trust interest, the 35-owner cap, unanimous votes, loans, investor limits, and when a TIC still fits.
- [How Do Delaware Statutory Trusts Work? Roles, Rules and Leases](https://baker1031.com/learn/how-dsts-work.md): How do Delaware Statutory Trusts work? Beneficial interests, trustee roles, the master lease, the seven deadly sins, springing LLCs and who can own a DST.
- [How Many DSTs Should You Own? Building a Diversified 1031](https://baker1031.com/learn/how-many-dsts-should-you-own.md): How many DSTs should you own? Learn how to split a 1031 exchange across sponsors, property types, regions and hold periods, with the identification math.
- [DST Sponsor Due Diligence: How to Check a Sponsor's Record](https://baker1031.com/learn/how-to-check-a-dst-sponsor.md): DST sponsor due diligence, step by step: check a sponsor's filings, regulatory history, court cases and finished deals yourself, and know what to ask next.
- [How to Invest in a Delaware Statutory Trust: Step by Step](https://baker1031.com/learn/how-to-invest-in-a-dst.md): How to invest in a Delaware Statutory Trust: who qualifies, DST minimums, identifying DSTs in 45 days, the paperwork and how fast a 1031 into a DST closes.
- [DST Offerings: How to Read the PPM and Evaluate a Deal](https://baker1031.com/learn/how-to-read-a-dst-offering.md): How to read DST offerings: what each PPM section means and how to check risk factors, fees, cash flow and IRR assumptions, reserves and track record.
- [DST Sponsors: How to Evaluate One Before You Invest](https://baker1031.com/learn/top-1031-dst-sponsor-firms.md): How to judge a DST sponsor: full-cycle track record, balance sheet, fees, debt and reserves, plus sourced profiles of several sponsors. No rankings.
- [How to Choose a DST Brokerage Firm (and Why I Won't Rank Them)](https://baker1031.com/learn/top-dst-brokerage-firms-for-1031-investors.md): How to choose among DST brokerage firms: how reps are paid, how to check a firm on BrokerCheck, and the questions to ask any DST broker, including me.
- [1031 Exchange Specialist: What One Does in a DST Exchange](https://baker1031.com/learn/what-does-a-1031-exchange-specialist-do.md): What a 1031 exchange specialist does when you buy DSTs: licenses, how they're paid, how they work with your CPA and QI, and the questions to ask first.
- [DST Sponsor Bankruptcy: What Happens to Your Investment](https://baker1031.com/learn/what-happens-if-a-dst-sponsor-goes-bankrupt.md): If a DST sponsor goes bankrupt, the trust still owns the property, but managers, lenders and income can change. Here is what to check before you invest.
- [Who Should Invest in a DST? Tired Landlords, Retirees and More](https://baker1031.com/learn/who-dsts-are-for.md): Who should invest in a DST? Tired landlords, retirees, out-of-state owners, small and large exchanges, cash and IRA money, and when a DST may not fit you.

## 721 Exchanges & UPREITs

- [721 Exchange Guide: How an UPREIT Works and What It Costs](https://baker1031.com/learn/721-exchange-guide.md): A 721 exchange swaps real estate or a DST interest for REIT operating partnership units and defers tax. Learn how it works, the rules, and trade-offs.
- [721 Exchange Pros and Cons: Benefits, Risks and Who It Fits](https://baker1031.com/learn/721-exchange-pros-and-cons.md): 721 exchange pros and cons: diversification, partial liquidity and estate benefits vs. the one-way door, lock-ups, REIT risk, fees and taxable exits.
- [721 Exchange Estate Planning: Tax Rules, Heirs and Timing](https://baker1031.com/learn/721-exchange-tax-and-estate-planning.md): 721 exchange estate planning: how OP units defer tax, what triggers the gain, step-transaction risk, reporting forms, heirs' basis and estate liquidity.
- [721 Exchange vs 1031: Control, Liquidity, Taxes and Estate Plans](https://baker1031.com/learn/721-vs-1031-exchange.md): 721 exchange vs 1031: how deadlines, debt, control, liquidity, diversification and estate plans differ, why a 721 is one-way, and when a DST comes first.
- [1031 Exchange Into REIT Shares: Why It Fails and the DST-721 Path](https://baker1031.com/learn/can-you-1031-into-a-reit.md): Can you do a 1031 exchange into a REIT? Not directly, because REIT shares are stock. See why, how the DST-then-721 path works, and who it can fit.
- [FFO and AFFO: How to Evaluate a REIT's Earnings, Debt and NAV](https://baker1031.com/learn/how-to-evaluate-a-reit.md): What FFO and AFFO mean, how to calculate them, and how to evaluate a REIT with payout ratios, debt, same-store NOI, occupancy and NAV, step by step.
- [Non-Traded REITs Explained: NAV, Private and Public REITs](https://baker1031.com/learn/non-traded-reits-explained.md): Non-traded REITs explained: how NAV REITs, private REITs and listed REITs differ, plus share classes, redemption limits, valuation, fees, BDCs and risks.
- [OP Units Explained: Meaning, Taxes and REIT Conversion](https://baker1031.com/learn/op-units-explained.md): Learn what OP units mean, how partnership interests differ from REIT shares, and how K-1 income, carried-over basis and redemption restrictions work.
- [Are REIT Dividends Qualified? How REIT Dividends Are Taxed](https://baker1031.com/learn/reit-dividends-and-taxes.md): Are REIT dividends qualified? Most aren't, but many can get the 20% Section 199A deduction. See how REIT dividends, return of capital and IRAs are taxed.
- [REIT Sectors Explained: How Each One Earns Income and Its Risks](https://baker1031.com/learn/reit-sectors.md): REIT sectors explained: net lease, industrial, healthcare, data center, cell tower, self-storage, hotel and more, with how each earns income and its risks.
- [How Much of Your Portfolio Should Be REITs? How to Decide](https://baker1031.com/learn/reits-in-a-portfolio.md): How much of your portfolio should be REITs? No single number fits. See how REITs react to rates and inflation, and how REIT ETFs and accounts fit a plan.
- [What Is a REIT and How Does It Work? A Plain-English Guide](https://baker1031.com/learn/what-is-a-reit.md): What is a REIT and how does it work? Learn the tax rules, equity vs. mortgage vs. hybrid REITs, how REITs pay dividends, and how beginners get started.

## Taxes & Planning

- [1031 Exchange on a Primary Residence: What the Rules Allow](https://baker1031.com/learn/1031-exchange-primary-residence.md): A 1031 exchange can't cover the home you live in, but Section 121 and 1031 can work together on a former home, a duplex or a vacation rental. See how.
- [Real Estate Capital Gains Tax: 2026 Rates, NIIT and Deferral](https://baker1031.com/learn/capital-gains-tax-on-real-estate.md): Real estate capital gains tax explained: 2026 federal rates, the 25% depreciation rate, the 3.8% NIIT, state tax, adjusted basis and ways to defer it.
- [Depreciation Recapture: How It's Taxed and How to Defer It](https://baker1031.com/learn/depreciation-recapture.md): Depreciation recapture explained in plain English: 2026 rates, the 25% cap, §1245 vs. §1250, NIIT, state tax, and how a 1031 exchange can defer it.
- [Opportunity Zone Funds: How QOFs Work Under the 2025 Law](https://baker1031.com/learn/opportunity-zone-funds.md): Opportunity zone funds let you defer a capital gain by investing it in a QOF within 180 days. Learn the 2027 rule changes, 10-year rule, risks and fees.
- [Opportunity Zone vs 1031 Exchange: Which Defers More Tax?](https://baker1031.com/learn/opportunity-zone-vs-1031-exchange.md): Opportunity Zone vs 1031 exchange: how each defers tax, what changed for money invested after 2026, which defers more, and how to combine the two.
- [Realized vs. Recognized Gain: Formula and 1031 Examples](https://baker1031.com/learn/realized-vs-recognized-gain.md): Compare realized and recognized gain, calculate adjusted basis, and see how cash boot and mortgage debt affect a 1031 exchange in worked examples.
- [Step-Up in Basis: What 1031 Investors and Heirs Should Know](https://baker1031.com/learn/step-up-in-basis.md): How the step-up in basis can reset deferred 1031 gain and recapture at death, plus community property, trusts, gifts, DSTs and the 2026 estate tax.

## 1033 & Special Situations

- [Eminent Domain 1031 Exchange vs. 1033: A Condemnation Playbook](https://baker1031.com/learn/1033-exchange-condemnation-casualty.md): A step-by-step playbook for owners facing eminent domain, fire or storm loss: first 30 days, proving the threat, severance pay, deadlines, 1031 vs. 1033.
- [1031 Exchange Mineral Rights: When Royalties Qualify](https://baker1031.com/learn/mineral-rights-1031-exchange.md): A 1031 exchange can include mineral rights and oil and gas royalties when state law treats them as real property. Learn the rules, rulings and deadlines.
- [What Is a 1033 Exchange? Section 1033 Rules and Deadlines](https://baker1031.com/learn/section-1033-involuntary-conversion.md): How a 1033 exchange defers gain on condemned, destroyed or stolen property: what qualifies, replacement tests, 2-, 3- and 4-year deadlines, basis and filing.
- [Working Interest vs Royalty Interest: Costs, Taxes and 1031](https://baker1031.com/learn/working-interest-vs-royalty-interest.md): Working interest vs royalty interest: who pays drilling costs, how each is taxed, liability and cash calls, and which can qualify for a 1031 exchange.

## Calculators & Glossary

- [1031 Exchange and DST Glossary: 124 Terms in Plain English](https://baker1031.com/learn/glossary.md): A 1031 exchange glossary in plain English: DST, 721, 1033, tax, securities and lending terms, from boot and basis to defeasance and springing LLCs.

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Securities are offered through Aurora Securities, Inc., member FINRA/SIPC. Baker 1031 Investments, LLC is independent of Aurora Securities, Inc. and is not a registered broker-dealer or investment adviser. This content is general education, not investment, tax, or legal advice, and is not an offer to buy or sell securities. Offers are made only through the offering documents to eligible investors, generally accredited investors. DST interests are illiquid, distributions are not guaranteed, and you can lose your entire investment.

Contact: Jerry Baker, Baker 1031 Investments · hello@baker1031.com · (415) 965-0552 · https://baker1031.com/contact