CHOOSING THE RIGHT ADVISOR FOR A 1031 EXCHANGE: STOCK BROKER OR SPECIALIST? For rental property owners approaching the sale of a long-held asset, the stakes surrounding a 1031 exchange are unusually high. A lifetime of equity growth, depreciation recapture exposure, and capital-gains taxes can hinge on a transaction that must comply precisely with the requirements of Internal Revenue Code §1031 and its accompanying regulations. Yet many investors instinctively turn to national stock-brokerage firms (aka “wirehouses”) when seeking advice. When the objective is to transition from active property ownership into a passive 1031-qualified replacement investment, such as a Delaware Statutory Trust (DST), a Qualified Opportunity Zone Fund, or another private-placement real estate program, investors are often better served by independent
boutique specialists whose practices focus specifically on these transactions. The difference is not merely stylistic. It is structural, economic, and professional.
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