Understanding Tax-Advantaged Vehicles, 1031 Exchanges, DSTs, and Opportunity Zones

When investors sell an appreciated investment property, they face a choice. They can do nothing and pay the capital gains tax; depending on the state and the individual’s income level the tax liability can be as high as 33%. The other option is to employ a tax-advantaged deferral and reduction vehicle. These vehicles fall into three large buckets: 1031 exchanges, Delaware Statutory Trusts, and new Qualified Opportunity Zone Funds.