You can execute a flawless 1031 exchange, hit every deadline, use a Qualified Intermediary correctly, reinvest every dollar of your proceeds, and still get a tax bill you weren't expecting.

It's called boot. And the version that catches careful investors off guard isn't cash they took at closing. It's debt relief. Sell a property with $400,000 of debt, exchange into one with $200,000, and that $200,000 reduction can be taxable even though you never touched a dollar yourself.

New article breaks down both forms of boot, how debt replacement actually works, when a partial exchange is a smart, deliberate choice, and the checklist to avoid surprises.

A $26.95 million debt-free DST just closed, backed by a 20-year master lease guarantee and tenants like Fred Meyer, Hobby Lobby, and Verizon.

It's already fully subscribed, so this isn't a pitch to chase it. But the structure is worth understanding: no leverage, necessity-based tenants, and a multi-path exit strategy offering cash-out, 1031, and 721 exchange options, with the sponsor stating plainly there's no guarantee those outcomes actually happen.

New article breaks down what this offering reveals about current investor demand and the questions worth asking about any similarly structured DST.