Property type
Land
Educational overview for 1031 exchange planning. Not investment advice.
Category: LandpassiveAsset class: Landfee_simpledst
Overview
Land 1031 Exchange — Educational Overview
Raw land held for investment generally qualifies as like-kind real property for federal 1031 purposes. Educational considerations include entitlement risk, carrying costs, and exit strategy.
General characteristics
Educational Considerations
- Entitlement and zoning
- Carrying costs (taxes, insurance)
- Hold horizon
Potential benefits
- Lower carrying costs\n- Potential development upside
Potential risks
- No income\n- Long hold horizons
Management requirements
Minimal day-to-day management.
Liquidity considerations
Direct: low.
Tax considerations
Generally eligible for 1031 exchange when held for investment.
Common investor profiles
Owners with a long time horizon.
Educational information only. The content on this page is general education and is not tax, legal, accounting, or investment advice. Consult your own CPA, attorney, and licensed investment professionals before making any decision related to a 1031 exchange or Delaware Statutory Trust.