The Death of the 1031 Exchange
How 100% Bonus Depreciation Is Changing the Math for Family Business Owners Who Buy, Sell, and Reinvest in Real Estate
For decades, family business owners relied on 1031 exchanges to defer taxes when selling appreciated real estate. Today, permanent 100% bonus depreciation offers a powerful new alternative that may provide greater flexibility, preserve investment capital, and eliminate many of the constraints of a traditional exchange.
A NEW APPROACH TO TAX EFFICIENT REAL ESTATE
Beyond the Traditional 1031 Exchange
Selling appreciated real estate has long meant choosing between paying significant capital gains taxes or navigating the strict timelines of a 1031 exchange. Permanent 100% bonus depreciation introduces a third path that may allow family business owners to preserve more capital while investing on their own timeline.
$8B+
Invested Since 1999
THE FUTURE OF TAX EFFICIENT REAL ESTATE INVESTING
Why Bonus Depreciation Matters
- Predictable Income and Stability
- Capital Appreciation and Inflation Protection
- Tax Efficiency and Legacy Preservation
Greater Investment Flexibility
Reinvest without the 45 day identification period or 180 day closing deadline associated with traditional 1031 exchanges.
Potential Tax Savings
Cost segregation and bonus depreciation may generate significant first year deductions that offset passive gains from the sale of investment real estate.
We help simplify these complexities through strategic real estate planning.
Understanding the Opportunity
We help family businesses evaluate how tax efficient real estate strategies can support long term wealth creation and capital preservation.
Understanding Bonus Depreciation
Learn how permanent 100% bonus depreciation changed the tax landscape.
Cost Segregation
See how engineering studies identify bonus eligible building components.
Comparing Your Options
Evaluate paying tax, completing a 1031 exchange, or reinvesting through bonus depreciation.
Long Term Planning
Understand how real estate can become a strategic tool for preserving wealth across generations.
A SMARTER WAY TO REINVEST
More Flexibility. More Control.
For years, a 1031 exchange was the only practical strategy for deferring taxes after selling investment real estate. Permanent bonus depreciation changes that equation by allowing many investors to reinvest on their own timeline while preserving more capital for future growth.
“The question is no longer ‘Must we exchange?’ It is ‘Why would we?'”
Important Disclaimer
Buchanan Street Partners and its employees are not tax professionals, and we do not provide tax advice. Information is provided for educational purposes only and does not constitute tax, legal, or investment advice. All examples are illustrative and exclude considerations around state taxes, depreciation recapture, transaction costs, and other factors that may materially affect outcomes. Consult your tax and legal advisors before making any investment or tax planning decisions.
Why buchanan Street
Helping Family Enterprises Make More Informed Real Estate Decisions
Whether you’re preparing to sell appreciated property or evaluating your next investment, Buchanan Street Partners works with family businesses, advisors, and investors to identify tax efficient real estate strategies that support long term wealth creation.
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