HOW IT WORKS
One plan.
Distinct transactions.
A 1031 exchange, ownership of a DST interest and a later Section 721 contribution are distinct stages. Completing one does not guarantee the next. Use separate documents, deadlines and professional confirmations for each stage.
TALK TO A 721 UPREIT ADVISOR
Talk to a 721 UPREIT advisor
Request a callback to discuss your transaction timeline, your timing and what to ask before you commit. Share your name, email and phone below to start the conversation.
No investment commitment or financial documents required. A callback request does not book an appointment or establish an advisory relationship.
Plan before the sale
Bring your advisor, tax professional, and qualified intermediary into the discussion. Confirm the property’s eligibility, your financial needs, and your exchange structure before proceeds are received.
Complete the 1031 exchange
Identify replacement property within 45 days. Generally, completion must occur by the earlier of 180 days or the tax-return due date, including extensions, for the sale year. Have your qualified intermediary confirm the applicable dates and any special relief.
Own the DST interest
A properly structured DST can qualify under the conditions discussed in IRS Revenue Ruling 2004-86. Review the property, financing, sponsor, expenses, and limits on trustee powers. A DST is not automatically eligible simply because it uses that name.
Evaluate any later contribution
The offering and governing documents control conversion rights, timing, conditions, and valuation. An anticipated two-year period is not a universal statutory requirement or an automatic safe harbor. Confirm whether you can decline the transaction.
Understand the partnership stage
Review the operating partnership agreement, any tax-protection agreement, and redemption provisions. The value of the investment and its distributions can change. Future liquidity and tax treatment must be evaluated independently.
Use the 1031 closing handoff checklist for the exchange stage, the decision-rights guide for a contemplated contribution, the fallback-control plan if the transaction does not occur, and the risk review before relying on future liquidity or tax treatment.
Before signing, ask this
“What happens to my investment if the contemplated 721 transaction never occurs?” The answer should come from the actual documents.
After a completed contribution, identify the asset you own before planning an exit. The another 1031 exchange after a 721 contribution guide separates direct real property, DST interests, OP units and REIT shares.
TALK TO A 721 UPREIT ADVISOR
Turn your questions into a clear next step
Request a callback to discuss your transaction timeline, your timing and what to ask before you commit. Share your name, email and phone below to start the conversation.
No investment commitment or financial documents required. A callback request does not book an appointment or establish an advisory relationship.
GO DEEPER ON A SPECIFIC DECISION
Related investor articles
- 721 UPREIT Eligibility: Can Every DST Be Contributed?
Determine whether a specific DST interest can enter a later 721 UPREIT contribution by verifying authority, property, debt, valuation and OP acceptance.
- 721 Contribution Changes Before Closing: Re-Underwriting Checklist
When proposed 721 contribution terms change before closing, recheck value, OP units, debt, tax protection, dates, consents and closing conditions.
- 721 Contribution Fails to Close: Deposit and Unwind Records
When a proposed 721 contribution does not close, reconcile termination, deposits, expenses, title, debt, contracts and OP-unit records.
- 721 Contribution Closing Evidence: What Proves the Deal Closed?
What documents prove a 721 contribution closed and the correct OP units were issued? Reconcile transfer, closing, debt, unit and tax records.
- Another 1031 Exchange After a 721 Contribution? Start With What You Own
Can you do another 1031 exchange after a 721 contribution? Use an ownership-stage test for direct property, DST interests, OP units and REIT shares.
TALK TO A 721 UPREIT ADVISOR
Ready to discuss your 721 options?
Request a callback to discuss your transaction timeline, your timing and what to ask before you commit. Share your name, email and phone below to start the conversation.
No investment commitment or financial documents required. A callback request does not book an appointment or establish an advisory relationship.
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