Efficiency of 1031 Exchange for Personal Financial Portfolios

Cl Lipscomb, Spenser Robinson

Research output: Contribution to journalArticlepeer-review

Abstract

This paper shows how to calculate the appropriate overweight portion of real estate in an investor's portfolio when evaluating a 1031 exchange.<br> Where the risk-adjusted future gains on tax-deferred dollars are greater than the risk-adjusted gains on after-tax dollars, a 1031 is more efficient.<br>Using historical rates of return across different asset classes, deferring capital gains taxes is frequently the preferred strategy but will depend on goals, risk tolerance and related portfolio considerations.<br> Delaware Statutory Trusts (DSTs) and UPREITs are potential alternatives to directasset exchange for a 1031 exchange.
Original languageEnglish
JournalJournal of Real Estate Practice and Education
StateAccepted/In press - 1800

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