What Every Property Owner Should Know About Eminent Domain & 1033 Exchanges
- What qualifies as a 1033 Exchange
- Potential tax-deferral opportunities
- How replacement property works
- Common mistakes property owners make
- Investment solutions available today
Why Property Owners Explore A 1033 Exchange
More Time
Qualifying 1033 exchanges often provide substantially longer replacement periods than traditional exchange strategies.
More Flexibility
Property owners generally maintain possession and control of proceeds while evaluating replacement opportunities.
More Options
A wide range of real estate investments may qualify based on your goals and situation.
Potential Tax Deferral
A properly structured 1033 exchange may allow you to defer capital gains taxes while reinvesting.
Our Simple Four-Step Process
Review
Review your award, timeline and ownership.
Evaluate
Determine whether a 1033 strategy fits.
Explore
Review DSTs, multifamily and net lease options.
Implement
Complete your strategy before deadlines.
Replacement Property Strategies
Delaware Statutory Trusts
Passive ownership of institutional-quality real estate.
Net Lease Properties
Single-tenant and multi-tenant opportunities designed for long-term income.
Multifamily Real Estate
Income-producing residential assets across multiple markets.
Industrial & Logistics
Properties positioned for long-term economic growth.
Diversified Portfolios
Diversified structures aligned with your investment objectives.
You Didn't Choose Eminent Domain.
But You Can Choose What Happens Next.
The government may control whether your property is acquired. You still control what happens to the proceeds. With proper planning, those proceeds may be repositioned toward income potential, diversification, wealth preservation and long-term financial objectives.
Frequently Asked Questions
What is a 1033 Exchange?
A Section 1033 Exchange is a tax-deferral strategy available after certain involuntary conversions, including eminent domain, condemnation, and government acquisitions.
Do I Need a Qualified Intermediary?
Unlike many 1031 Exchange transactions, a Qualified Intermediary generally is not required for a Section 1033 Exchange..
How Long Do I Have To Complete A 1033 Exchange?
Replacement timelines vary based on the circumstances of the conversion and applicable tax rules. Property owners should consult their tax advisor regarding deadlines specific to their situation.
What Happens If I Miss The Deadline?
Failure to satisfy applicable replacement requirements and deadlines may result in recognition of taxable gain. Consult your tax advisor regarding your specific circumstances.
Ready To Discuss Your 1033 Exchange Options?
If you have received compensation from eminent domain, condemnation or a government acquisition, let's discuss whether a Section 1033 Exchange strategy may be appropriate for your situation.
Important Disclosure: Section 1033 Exchanges involve complex tax and legal considerations. Not all situations qualify for Section 1033 treatment. Exclusive Financial Resources, LLC does not provide tax or legal advice. Individuals should consult their tax advisor, attorney, and other professional advisors regarding their specific circumstances before making any investment or tax-related decisions. Investments involve risk, including the possible loss of principal.
