Accruit will be hosting our monthly educational webinar on The Differences Between 1031 Exchange and 721 Exchange. Join our presenter Alex Moore on December 17th where he will provide a comprehensive comparison of two powerful tax-deferral tools in real estate investing. Attendees will learn the core differences between these sections of the Internal Revenue Code, when and how each can be applied, and how they can be strategically used together—particularly in scenarios involving REITs and UPREIT structures.
We’ll begin with a foundational review of 1031 Exchanges, then explore how the 721 Exchange offers a unique path for investors seeking tax deferral and liquidity through contribution of property into a Real Estate Investment Trust (REIT).
Topics to be covered include:
- A refresher on 1031 Exchange rules, including:
- Like-kind property requirements
- Timeline for identification and acquisition
- Qualified Intermediary involvement
- An introduction to IRC Section 721, or 721 Exchange, which allows for the tax-deferred contribution of real property to a REIT in exchange for Operating Partnership (OP) units
- The key differences between a 1031 and 721, including:
- Types of eligible assets and ownership structures
- Timing of tax deferral vs. eventual recognition
- Liquidity and estate planning considerations
- How a 1031 and 721 can be combined, using a two-step strategy known as a “1031 into an UPREIT”
- Important considerations and advanced planning for these tax deferral strategies
This session is ideal for real estate investors, advisors, and professionals exploring advanced tax strategies that combine the benefits of tax deferral with passive investment and diversification options.
Register for FREE at this link.