Case Study

How John & Mary Deferred $270K in Taxes and Left a Bigger Inheritance

John & Mary, both in their 70s, were ready to sell their condo but didn’t want the tax bill or another property to manage. They used a 1031 exchange to roll their gains into a Delaware Statutory Trust, invested in commercial real estate, and avoided paying over $270,000 in taxes.

They now collect passive income and will receive a step-up in basis—leaving $1.1M to their heirs instead of $830K. It’s a win-win for retirement income and estate planning.

Case Study

Jane’s Tax-Smart Exit Strategy

Jane had owned her rental property for over 30 years and was ready to sell for $1.7 million. Her plan? Pay taxes on the full sale proceeds and use what was left to buy another property.

But when we ran the numbers, we saw that Jane was about to hand over $500,000 to taxes—capital gains, recapture, state taxes, and the net investment income tax.

We showed Jane a smarter way: by using a 1031 Exchange, she could roll a portion of her proceeds into a Delaware Statutory Trust (DST) and defer the taxes on that amount. Jane decided to:

  • Take $600,000 to buy another property

  • Set aside $200,000 for taxes

  • Use the 1031 Exchange to defer taxes on the remainder by investing in a DST

Now Jane enjoys monthly income from her DST investment, grows her wealth, and leaves more to her heirs—all while keeping her principal working for her.

It’s a tax-smart exit strategy that aligns with her long-term financial goals.