--- title: 6 Reasons Why 1031 Exchanges are Worth Considering - Chicagoland 1031 Exchange description: A 1031 Exchange is an under-looked yet tax-advantaged solution that is potentially one of the most powerful tax planning and wealth preservation strategies available to investors. This blog article explains the 6 reasons why completing a 1031 exchange into a Delaware Statutory Trust (DST) is worth considering. image: https://blog.chicagoland1031exchange.com/hubfs/6%20Reasons%20Why%20a%201031%20Exchange%20is%20Worth%20Considering.jpg --- [![logo-black-mobile](https://blog.chicagoland1031exchange.com/hs-fs/hubfs/logo-black-mobile.png?width=261&height=90&name=logo-black-mobile.png "logo-black-mobile")](https://chicagoland1031exchange.com/) [![logo-black](https://blog.chicagoland1031exchange.com/hs-fs/hubfs/logo-black.png?width=261&height=90&name=logo-black.png "logo-black")](https://chicagoland1031exchange.com/) [![brokercheck-white](https://chicagoland1031exchange.com/wp-content/uploads/2019/07/iconfinder_phone-call_2561306.png)(224) 245-5281](tel:224-245-5281) - [Default HubSpot Blog](https://blog.chicagoland1031exchange.com/insights-events) - [Section 1031 Exchange](https://chicagoland1031exchange.com/1031-exchange-program/) - [1031 Exchange](https://chicagoland1031exchange.com/1031-exchange-program/1031-exchange/) - [DST 1031 Exchange](https://chicagoland1031exchange.com/1031-exchange-program/dst-1031-exchange/) - [Available 1031 Properties](https://invest.chicagoland1031exchange.com/1031-exchange-properties) - [Resources](https://chicagoland1031exchange.com/1031-exchange-information/) - [What is a 1031 Exchange?](https://chicagoland1031exchange.com/1031-exchange-information/what-is-1031-exchange/) - [Delaware Statutory Trust 1031](https://chicagoland1031exchange.com/1031-exchange-information/delaware-statutory-trust-1031/) - [1031 Exchange Process](https://chicagoland1031exchange.com/1031-exchange-information/1031-exchange-process/) - [1031 Exchange Timeline](https://chicagoland1031exchange.com/1031-exchange-information/1031-exchange-timeline/) - [1031 Exchange Rules](https://chicagoland1031exchange.com/1031-exchange-information/1031-exchange-rules/) - [1031 Exchange FAQs](https://chicagoland1031exchange.com/1031-exchange-information/1031-exchange-faq/) - [1031 Real Estate](https://chicagoland1031exchange.com/1031-exchange-information/1031-real-estate/) - [Partnering with a 1031 Advisor](https://chicagoland1031exchange.com/1031-exchange-information/1031-advisors/) - [About Us](https://chicagoland1031exchange.com/1031-exchange-professionals/) - [1031 Professional](https://chicagoland1031exchange.com/1031-exchange-professionals/1031-professional/) - [A National Presence](https://chicagoland1031exchange.com/1031-exchange-professionals/a-national-presence/) - [Property Due Diligence](https://chicagoland1031exchange.com/1031-exchange-professionals/property-due-diligence/) - [Sample Exchanges](https://chicagoland1031exchange.com/1031-exchange-professionals/sample-exchanges/) - [Insights](https://blog.chicagoland1031exchange.com/insights-events) - [![brokercheck-white](https://chicagoland1031exchange.com/wp-content/uploads/2019/07/iconfinder_phone-call_2561306.png)(224) 245-5281](tel:224-245-5281) # Insights ![Blog Banner Image](https://blog.chicagoland1031exchange.com/hs-fs/hubfs/ch-website-images-header-homepage-option-03.jpg?width=1900&name=ch-website-images-header-homepage-option-03.jpg "Blog Banner Image") # Insights ### Subscribe to Our Blog - [1031 Exchange (17)](https://blog.chicagoland1031exchange.com/insights-events/tag/1031-exchange) - [DST 1031 Exchange (16)](https://blog.chicagoland1031exchange.com/insights-events/tag/dst-1031-exchange) - [COVID-19 (9)](https://blog.chicagoland1031exchange.com/insights-events/tag/covid-19) - [Insights (9)](https://blog.chicagoland1031exchange.com/insights-events/tag/insights) - [Coronavirus (7)](https://blog.chicagoland1031exchange.com/insights-events/tag/coronavirus) - [Delaware Statutory Trust (6)](https://blog.chicagoland1031exchange.com/insights-events/tag/delaware-statutory-trust) - [News (6)](https://blog.chicagoland1031exchange.com/insights-events/tag/news) - [Opportunity Zones (6)](https://blog.chicagoland1031exchange.com/insights-events/tag/opportunity-zones) - [Alternative Investments (5)](https://blog.chicagoland1031exchange.com/insights-events/tag/alternative-investments) - [Due Diligence (4)](https://blog.chicagoland1031exchange.com/insights-events/tag/due-diligence) - [NNN Lease (1)](https://blog.chicagoland1031exchange.com/insights-events/tag/nnn-lease) More Tags # 6 Reasons Why 1031 Exchanges are Worth Considering ##### Written by [Nathan Kuhn](https://blog.chicagoland1031exchange.com/insights-events/author/nathan-kuhn) on May 02, 2019 - [Tweet](https://twitter.com/share) When tax reform passed Congress last year, 1031 exchanges pertaining to real estate were spared major changes in legislation. This often under-looked yet tax-advantaged solution is potentially one of the most powerful tax planning and wealth preservation strategies available to investors. #### ***Here are 6 reasons why completing a 1031 exchange into a Delaware Statutory Trust (DST) is worth considering.*** ### 6. Facilitate Estate Planning A 1031 exchange may be known best as a tax-deferral technique, but it’s also a powerful estate planning tool. A Delaware Statutory Trust (DST) and Tenants in Common (TIC) structure allows for a step up in basis for your heirs equal to its fair market value upon death, removing any previous appreciation in value. This also may facilitate intergenerational planning and protect family interests. ### 5. Passive Ownership The benefits of owning an investment property can also bring a burden, including maintenance and landlord responsibilities. The DST structure allows for passive ownership, where investors buy into a trust that holds title while the sponsor manages the property and operations. ### 4. A Diverse Portfolio The passive ownership structure of DSTs enable you to diversify your portfolio by property type as well as geographically. Investments may be an exact amount of your choosing with proceeds reinvested into multiple investments. ### 3. Generate Cash Flow While this may be dependent on the type of replacement property purchased, the potential for consistent cash flow exists with a DST and TIC 1031 exchange. By completing a 1031 exchange, an investor could potentially generate cash flow on 100% of their sales proceeds, rather than losing a portion of their proceeds to taxes. ### 2. Preserve Capital If you sell a property without utilizing a 1031 exchange, you will lose a portion of your gains to taxes. A successfully completed TIC or DST 1031 exchange may provide you with the opportunity to put all capital to work and increase your purchasing power and cash flow. ### 1. Defer Taxes The most well-known reason for completing any 1031 exchange is the ability to defer and potentially eliminate taxes on the sale of property. Properly completing an exchange allows an investor to defer the taxes that would be due on the sale. Additionally, an investor could potentially continue exchanging until their death at which time their beneficiaries would receive a step up in basis. DSTs are a unique investment solution for completing 1031 exchanges and are worth evaluating if you are considering a 1031 exchange. ### Navigating a 1031 Exchange The rules and timelines that must be followed for a 1031 exchange are complex and may feel overwhelming to complete without professional guidance. Given the financial magnitude of your investment, take the time to invest with thought and clarity and be sure to understand all of your options. Want help? We’re here to help make sense of the process and guide you through the exchange so you can walk away feeling confident you’ve made the right decision. Topics: [1031 Exchange](https://blog.chicagoland1031exchange.com/insights-events/topic/1031-exchange), [DST 1031 Exchange](https://blog.chicagoland1031exchange.com/insights-events/topic/dst-1031-exchange) [![Banner - Chicagoland 1031 - Availability Report CTA](https://blog.chicagoland1031exchange.com/hs-fs/hubfs/Banner%20-%20Chicagoland%201031%20-%20Availability%20Report%20CTA.png?width=730&name=Banner%20-%20Chicagoland%201031%20-%20Availability%20Report%20CTA.png "Banner - Chicagoland 1031 - Availability Report CTA")](https://invest.chicagoland1031exchange.com/1031-exchange-properties) [Previous Post](https://blog.chicagoland1031exchange.com/insights-events/investing-in-millennial-housing) #### [Investing in Millennial Housing Choices](https://blog.chicagoland1031exchange.com/insights-events/investing-in-millennial-housing) [Next Post](https://blog.chicagoland1031exchange.com/insights-events/three-siblings-and-a-dst-1031-exchange) #### [Three Siblings, Two Properties, and a DST 1031 Exc...](https://blog.chicagoland1031exchange.com/insights-events/three-siblings-and-a-dst-1031-exchange) - Latest Posts - Popular Posts [The DST Market Experiences Reduced Decline in Volume Compared to Commercial Real Estate Overall](https://blog.chicagoland1031exchange.com/insights-events/the-dst-market-experiences-reduced-decline-compared-to-commercial-real-estate-overall) [ 1031 Exchange](https://blog.chicagoland1031exchange.com/insights-events/topic/1031-exchange) [Housing Affordability and Its Impact on Real Estate Investments](https://blog.chicagoland1031exchange.com/insights-events/housing-affordability-and-its-impact-on-real-estate) [ 1031 Exchange](https://blog.chicagoland1031exchange.com/insights-events/topic/1031-exchange) [Why We Continue to See Opportunity in Multi-Family Real Estate Investments in 2022](https://blog.chicagoland1031exchange.com/insights-events/why-we-continue-to-see-opportunity-in-multi-family-real-estate-investments-in-2022) [ Insights](https://blog.chicagoland1031exchange.com/insights-events/topic/insights) [ News](https://blog.chicagoland1031exchange.com/insights-events/topic/news) [ 1031 Exchange](https://blog.chicagoland1031exchange.com/insights-events/topic/1031-exchange) [ COVID-19](https://blog.chicagoland1031exchange.com/insights-events/topic/covid-19) [ Coronavirus](https://blog.chicagoland1031exchange.com/insights-events/topic/coronavirus) [ Due Diligence](https://blog.chicagoland1031exchange.com/insights-events/topic/due-diligence) [![Chicagoland 1031 - Availability Report CTA](https://blog.chicagoland1031exchange.com/hs-fs/hubfs/Chicagoland%201031%20-%20Availability%20Report%20CTA.png?width=700&name=Chicagoland%201031%20-%20Availability%20Report%20CTA.png "Chicagoland 1031 - Availability Report CTA")](https://chicagoland1031exchange.com/1031-exchange-properties/) ## Need help with your 1031 exchange? ### We're here for you. [![Let's Talk](https://no-cache.hubspot.com/cta/default/5268710/398420ba-42b1-4289-b473-217cda76c944.png)](https://cta-redirect.hubspot.com/cta/redirect/5268710/398420ba-42b1-4289-b473-217cda76c944) - Latest Posts - Popular Posts [The DST Market Experiences Reduced Decline in Volume Compared to Commercial Real Estate Overall](https://blog.chicagoland1031exchange.com/insights-events/the-dst-market-experiences-reduced-decline-compared-to-commercial-real-estate-overall) [ 1031 Exchange](https://blog.chicagoland1031exchange.com/insights-events/tag/1031-exchange) [Housing Affordability and Its Impact on Real Estate Investments](https://blog.chicagoland1031exchange.com/insights-events/housing-affordability-and-its-impact-on-real-estate) [ 1031 Exchange](https://blog.chicagoland1031exchange.com/insights-events/tag/1031-exchange) [Why We Continue to See Opportunity in Multi-Family Real Estate Investments in 2022](https://blog.chicagoland1031exchange.com/insights-events/why-we-continue-to-see-opportunity-in-multi-family-real-estate-investments-in-2022) [ Insights](https://blog.chicagoland1031exchange.com/insights-events/tag/insights) [ News](https://blog.chicagoland1031exchange.com/insights-events/tag/news) [ 1031 Exchange](https://blog.chicagoland1031exchange.com/insights-events/tag/1031-exchange) [ COVID-19](https://blog.chicagoland1031exchange.com/insights-events/tag/covid-19) [ Coronavirus](https://blog.chicagoland1031exchange.com/insights-events/tag/coronavirus) [ Due Diligence](https://blog.chicagoland1031exchange.com/insights-events/tag/due-diligence) [Multi-Family Real Estate Investing, COVID-19, and Other Considerations](https://blog.chicagoland1031exchange.com/insights-events/multi-family-real-estate-investing-covid-19-and-other-considerations) [ Insights](https://blog.chicagoland1031exchange.com/insights-events/tag/insights) [ News](https://blog.chicagoland1031exchange.com/insights-events/tag/news) [ 1031 Exchange](https://blog.chicagoland1031exchange.com/insights-events/tag/1031-exchange) [ COVID-19](https://blog.chicagoland1031exchange.com/insights-events/tag/covid-19) [ Coronavirus](https://blog.chicagoland1031exchange.com/insights-events/tag/coronavirus) [ Due Diligence](https://blog.chicagoland1031exchange.com/insights-events/tag/due-diligence) [COVID-19's Impact on Housing Prices](https://blog.chicagoland1031exchange.com/insights-events/how-covid-19-impacts-housing-prices) [ Insights](https://blog.chicagoland1031exchange.com/insights-events/tag/insights) [ News](https://blog.chicagoland1031exchange.com/insights-events/tag/news) [ 1031 Exchange](https://blog.chicagoland1031exchange.com/insights-events/tag/1031-exchange) [ COVID-19](https://blog.chicagoland1031exchange.com/insights-events/tag/covid-19) [ Coronavirus](https://blog.chicagoland1031exchange.com/insights-events/tag/coronavirus) [ Due Diligence](https://blog.chicagoland1031exchange.com/insights-events/tag/due-diligence) ## Need help with your 1031 exchange? ### We're here for you.   [![Let's Talk](https://no-cache.hubspot.com/cta/default/5268710/398420ba-42b1-4289-b473-217cda76c944.png)](https://cta-redirect.hubspot.com/cta/redirect/5268710/398420ba-42b1-4289-b473-217cda76c944) [![Chicagoland 1031 - Availability Report](https://blog.chicagoland1031exchange.com/hs-fs/hubfs/Banner%20-%20Chicagoland%201031%20-%20Availability%20Report%20CTA.png?width=1900&name=Banner%20-%20Chicagoland%201031%20-%20Availability%20Report%20CTA.png "Chicagoland 1031 - Availability Report")](https://invest.chicagoland1031exchange.com/1031-exchange-properties) [![logo-white](https://blog.chicagoland1031exchange.com/hs-fs/hubfs/logo-white.png?width=261&height=90&name=logo-white.png "logo-white")](https://chicagoland1031exchange.com/) - 1827 Walden Office Square Suite 500 Schaumburg, IL 60173 - [(224) 245-5281](tel:224-245-5281) [![brokercheck-white-140px](https://blog.chicagoland1031exchange.com/hs-fs/hubfs/brokercheck-white-140px.png?width=140&height=32&name=brokercheck-white-140px.png "brokercheck-white-140px")](https://brokercheck.finra.org/individual/summary/4624143) Chicagoland 1031 Exchange proudly serves clients nationwide, including California, Illinois, Florida, Colorado, Massachusetts, and more.   The information herein has been prepared for educational purposes only and does not constitute an offer to purchase or sell securitized real estate investments. Such offers are only made through the sponsors Private Placement Memorandum (PPM) which is solely available to accredited investors and accredited entities. DST 1031 properties are only available to accredited investors (typically have a $1 million net worth excluding primary residence or $200,000 income individually/$300,000 jointly of the last two years, and reasonably expects the same for the current year) and accredited entities only. If you are unsure if you are an accredited investor and/or an accredited entity please verify with your CPA and Attorney. There are risks associated with investing in real estate and Delaware Statutory Trust (DST) properties including, but not limited to, loss of entire investment principal, declining market values, tenant vacancies and illiquidity. Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. Because investor's situations and objectives vary this information is not intended to indicate suitability for any particular investor. This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice/guidance regarding your particular situation. This site is published for residents of the United States only. Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all of the services referenced on this site are available in every state and through every advisor listed. For additional information, please contact Nathan Kuhn at 224-245-5281 Chicagoland 1031 Exchange does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstances. Securities offered through DAI Securities, LLC, member [FINRA](https://www.finra.org/) / [SIPC](https://www.sipc.org/). Advisory services offered through Kuhn Wealth Management, Inc. (KWM), a state registered investment advisor. Insurance offered through DAI Securities, LLC. KWM dba Chicagoland 1031 Exchange is independent of DAI Securities, LLC. Copyright © 2022 Kuhn Wealth Management. 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