When Your Client Has a Capital Gain: A CPA’s 2026 Decision Tree for 1031 and Alternative Deferral Strategies

The Opening Conversation

You learned about the sale because your client called you. Maybe they want to know what their tax bill will be. Maybe they assume they have to pay capital gains and just want to know how much. Maybe they have heard of a “1031 exchange” but have not gotten any further. Whatever the prompt, you have a narrow window before the client makes irreversible decisions: signs the listing agreement, accepts an offer, sets a closing date, or wires the proceeds to their own account.

The seven questions below are the framework for the first 15 minutes. They surface the facts that determine which of five capital gains deferral strategies (or no deferral at all) is the right answer for this specific client. The framework is sequential. Questions 1 and 2 are gating: if either fails, no deferral is available and the conversation moves to traditional tax planning. Questions 3 through 7 narrow the choice among the available structures.

This is a companion to The CPA’s Guide to Investment Grade 1031 Exchanges, which covers the 1031 mechanics in depth. For the broader strategic framework, see the investment grade 1031 exchange pillar guide and the investment grade guide.

Question 1: Is the Property Real Property Held for Investment or Business Use?

What you are testing. Whether the property qualifies for any deferral structure other than a Section 121 primary residence exclusion (which has its own rules and is not a deferral but an exclusion).

What disqualifies it.

• Primary residence (Section 121 may apply instead, but no 1031 or QOZ deferral on real estate)
• Vacation home with predominant personal use (not investment intent)
• Inventory held by a real estate dealer (a “flipper”)
• Property held in a self-directed IRA or qualified retirement plan (different rules govern)
• Foreign real property (1031 only allows U.S. real property exchanged for U.S. real property)

What qualifies it. Investment real estate, rental real estate, business-use real estate (owner-occupied commercial property where the owner has a separate operating entity), and most ground leases. The hold period should generally be at least one to two years to demonstrate investment intent; shorter holds invite IRS scrutiny that the property was inventory.

If this fails. No 1031, no QOZ for real estate. Move to traditional tax planning: §121 exclusion if primary residence, ordinary income treatment if dealer, IRA distribution rules if retirement-account property.

Question 2: Is the Client Selling the Property at a Gain?

What you are testing. Whether deferral is needed at all.

Calculate the realized gain quickly:

• Expected sale price (net of selling costs)
• Less: original purchase price
• Less: capital improvements made over the hold period
• Plus: accumulated depreciation taken (this comes back at recapture)
• Equals: realized gain

If the gain is small or zero. Deferral structures may not be cost-justified. The 1031 exchange has fees ($1,000 to $2,500 for a delayed exchange, more for reverse or improvement structures), and the QOZ has structural complexity. For gains under approximately $100,000, the after-fee benefit may not justify the operational complexity. The taxable sale may be cleaner.

If the gain is meaningful. Continue. The remaining questions narrow the choice among structures.

Question 3: What Is the Tax Bracket the Gain Will Be Taxed At?

What you are testing. How much tax is at risk if no deferral is used. This drives the urgency of the deferral conversation.

The 2026 federal long-term capital gains brackets:

Add the 3.8% NIIT for clients with MAGI above $200,000 (single) or $250,000 (MFJ). Add the 25% Section 1250 unrecaptured depreciation rate on the depreciation recapture portion of the gain. Add state tax (zero in Florida, Texas, and other no-income-tax states; up to 13.3% in California).

For a top-bracket investor in California, the all-in marginal rate on long-term capital gains and depreciation recapture can approach 37%. For a bottom-bracket retiree in Florida with a primarily appreciation-driven gain, the marginal rate can be 0%. The deferral conversation matters most for high-bracket clients in high-tax states.

Question 4: What Is the Client’s Reinvestment Intent?

What you are testing. Whether the client wants to stay in real estate or exit.

This is the most important question for choosing among 1031, QOZ, §453, §721, and a taxable sale.

• Stay in direct real estate ownership. 1031 is the default. Indefinite deferral, full reinvestment of proceeds, basis preservation, eventual step-up at death. Investment grade NNN is the dominant replacement choice for passive income.
• Exit active management but want continued real estate exposure. §721 UPREIT (contribute property to a REIT operating partnership in exchange for OP units) keeps the client invested in real estate but as a passive partner. Few REITs accept §721 contributions; the structure is complex.
• Exit active management, want truly passive replacement. DST (Delaware Statutory Trust) within a 1031 structure. The client receives a fractional beneficial interest in institutional-quality real estate. No control. No ability to refinance. Generally no future 1031 out. Investment Grade does not represent on DST transactions because DSTs are securities products that fall outside our direct-ownership commercial real estate practice.
• Exit real estate entirely, want to redeploy into other investments. Qualified Opportunity Zone (QOZ) investment defers the gain (not the basis) and allows reinvestment in any QOZ-eligible business or real estate. The investor keeps the basis as cash for redeployment elsewhere.
• Exit real estate entirely, want to receive payments over time (not a lump sum). §453 installment sale spreads recognition over the payment period.
• Exit real estate entirely, want a clean cash exit. Taxable sale. Pay the tax. Sometimes the right answer.

Question 5: What Is the Client’s Liquidity Need?

What you are testing. How much of the proceeds the client needs as cash.

This question separates 1031 from QOZ from a taxable sale.

• No cash needed; full reinvestment available. 1031 is structurally optimal. Defer 100% of the gain by reinvesting 100% of the proceeds.
• Partial cash needed (up to the original basis). QOZ allows the client to keep the basis as cash and only defer the capital gain portion. For a $3M sale with $1M basis and $2M gain, QOZ requires only $2M reinvestment in a Qualified Opportunity Fund; the $1M basis is retained as cash.
• Cash needed beyond the basis (cash boot from a 1031). The 1031 still works, but the cash retained becomes taxable boot. The client gets partial deferral plus a partial tax bill. This is rarely optimal; the QOZ is usually structurally cleaner if material cash is needed.
• Cash needed over time (not at closing). §453 installment sale fits naturally. The buyer pays over multiple years; the client recognizes gain pro-rata as payments are received.
• All proceeds needed at closing for non-investment purposes. Taxable sale. No deferral structure fits.

Question 6: What Is the Client’s Holding Horizon and Estate Planning Position?

What you are testing. Whether the deferred gain will eventually be recognized in life or eliminated at death.

Under IRC §1014, real property included in a decedent’s estate receives a stepped-up basis equal to fair market value as of the date of death. All deferred gain accumulated over a lifetime of 1031 exchanges vanishes when the property passes to heirs at the stepped-up basis.

• Older client (60+) with no plans to sell again. 1031 is structurally optimal. The deferred gain will be eliminated at death via the §1014 step-up. With the OBBBA’s permanent $15M ($30M MFJ) federal estate tax exemption, most portfolios pass to heirs entirely free of federal tax. This is the buy-exchange-die strategy.
• Younger client (under 50) likely to sell again at some point. 1031 is still attractive because each new 1031 defers indefinitely; a future sale outside a 1031 structure recognizes the cumulative deferred gain at that point. The strategy is to keep 1031‑ing until death.
• Client planning to gift the property during life. Inter vivos gifts use the donor’s basis (carryover basis under IRC §1015), not a step-up. The 1031 deferred gain is preserved in the donee’s basis and recognized when the donee eventually sells. The buy-exchange-die strategy fails for property that is gifted during life.
• Client funding a charitable gift with the property. Charitable contribution of appreciated property to a qualified charity allows a fair-market-value deduction (subject to AGI limits) and avoids the gain entirely. Compare against the 1031.

Question 7: What Is the Client’s Geographic Flexibility?

What you are testing. State tax exposure on the eventual recognition of the deferred gain.

1031 is a federal provision. State conformity varies. Most states (Florida, Texas, Tennessee, Nevada, and the no-income-tax states) defer state capital gains tax in parallel with federal. A handful (California, Oregon, Massachusetts) impose clawback rules that recapture state tax when the replacement property is eventually sold or when the client moves. Pennsylvania does not recognize 1031 deferral at the individual income tax level at all.

• Client in a no-tax state (Florida, Texas, Tennessee, Nevada, Wyoming). No state tax exposure. 1031 deferral is clean federally and at the state level.
• Client in California, Oregon, or Massachusetts (and 1031‑ing into out-of-state replacement property). Federal deferral works; state clawback follows the deferred gain indefinitely. CPAs must establish the Form 3840 (California) or equivalent annual reporting routine.
• Client planning to relocate to a no-tax state. The relocation timing matters. If bona fide residency change is established before the eventual sale of the replacement property, California (and similar) clawback can be reduced or avoided. This requires careful planning with state tax counsel.
• Client in Pennsylvania. Individual Pennsylvania residents owe state tax on the gain even if a federal 1031 is completed. The Pennsylvania state tax cannot be deferred for individuals.

The Decision Matrix: Which Structure Fits Which Client

Worked Client Scenarios

Scenario A: The 65-Year-Old Apartment Owner

Client owns a 24-unit apartment building in Austin, Texas, purchased in 1998 for $1.2M. Current value $4.8M. Gain: $3.6M. Accumulated depreciation: $900K. Client is 65, recently widowed, exhausted by management, wants passive income.

Decision tree results:

• Q1: Investment real property. Yes.
• Q2: $3.6M gain. Yes, deferral matters.
• Q3: Top federal bracket likely; Texas has no state tax. Federal liability without deferral: ~$890K. (Recapture $225K + LT cap gains $540K + NIIT $137K).
• Q4: Wants to exit active management but stay in real estate.
• Q5: No liquidity need. Lives on other income.
• Q6: 65 years old, no plans to sell again. Estate planning oriented.
• Q7: Texas. No state tax. Clean.

Recommendation. 1031 into investment grade NNN. Identifies three NNN properties (target plus two backups) within 45 days. Closes within 180 days into a $4.8M Walmart NNN ground lease in suburban Texas. Defers $890K of federal tax. Receives passive 6.0% cap rate income (no management). At death, property passes to heirs at $4.8M+ stepped-up basis under IRC §1014; the $3.6M of deferred gain (including $900K of recapture) is eliminated. Federal estate tax exemption of $15M covers the entire portfolio.

Scenario B: The 45-Year-Old Looking to Fund a Business Expansion

Client owns a small office building in San Diego, California, purchased in 2010 for $1.8M. Current value $3.5M. Gain: $1.7M. Accumulated depreciation: $400K. Client is 45, runs a successful manufacturing business, wants $1M of cash to fund equipment purchases and reinvest the remaining proceeds.

Decision tree results:

• Q1: Investment real property. Yes.
• Q2: $1.7M gain. Yes.
• Q3: Top federal bracket; California 13.3%. Federal liability without deferral: ~$465K. California: ~$226K. All-in: ~$691K.
• Q4: Wants partial real estate exposure plus liquidity for the business.
• Q5: Needs $1M cash. Has $1.8M of basis to work with.
• Q6: 45 years old. Long horizon.
• Q7: California. Form 3840 clawback if 1031‑ing out of state.

Recommendation. Hybrid approach. The client puts $1.7M of gain into a Qualified Opportunity Zone fund (preserves the deferral, allows the basis to be retained as cash for the business). Of the $1.8M basis, $1M funds business equipment immediately and $800K is held in the business operating account. The $1.7M QOZ investment defers federal tax for five years with a 10% basis step-up at year five and full exclusion of new appreciation after a 10-year hold. California state tax is owed in the year of sale (California does not conform to QOZ for state tax purposes), so a $1.7M California liability of approximately $226K is due. Net: defers ~$465K federal indefinitely, receives $1M+ cash for the business, accepts the $226K California cost as the price of the structure.

Alternative considered: 1031 with $1M of cash boot. This works mechanically but the $1M boot creates approximately $200K of federal tax (taxable as gain). Less optimal than QOZ for this client because QOZ keeps the basis ($1.8M) as cash without triggering federal tax.

Scenario C: The Stock Sale Client (No Real Estate Gain)

Client sold a privately-held business in 2026 for $8M with a $7M long-term capital gain. The CPA wants to defer the gain.

Decision tree results:

• Q1: Not real property. Stock sale.
• 1031 is unavailable.

Recommendation. Qualified Opportunity Zone investment. The client invests the $7M gain in a Qualified Opportunity Fund within 180 days of the sale. Defers federal tax for five years with a 10% basis step-up at year five and full exclusion of any appreciation after a 10-year hold. The remaining $1M of basis is retained as cash. New OZ designations effective January 1, 2027 expand the eligible geography.

Scenario D: The Family Transfer with Seller Financing

Client owns a small commercial property and wants to sell it to her son for $1.5M. The son does not have full purchase financing available; the parent is willing to take back a 10-year seller note at 6% interest. Original basis $400K. Gain: $1.1M.

Decision tree results:

• Q1: Yes, real property.
• Q2: Yes, gain.
• Q4: Family transfer; the parent does not want a 1031.
• Q5: Liquidity need is the seller note payments over time.

Recommendation. Section 453 installment sale. Recognize the $1.1M gain pro-rata as payments are received over 10 years. Each payment is split between principal (taxable as gain at the gross profit ratio of 73%) and interest (taxable as ordinary income). The depreciation recapture portion is recognized in Year 1 regardless of installment terms, so the parent has some Year 1 recognition. The remaining gain spreads across the payment period.

Scenario E: The Charitable Gifting Client

Client owns a NNN property in Phoenix, Arizona, purchased 20 years ago for $800K. Current value $2.5M. Gain: $1.7M. Client is 78, has no children, and wants to leave a legacy to a university foundation.

Decision tree results:

• Q1: Yes, real property.
• Q2: Yes, large gain.
• Q4: Charitable intent.
• Q6: Estate planning oriented.

Recommendation. Direct charitable contribution of the property to the university foundation. Client receives a fair-market-value charitable deduction of $2.5M (subject to AGI limits, 30% of AGI for appreciated real property contributions, with five-year carryforward). The $1.7M gain is never recognized. The university foundation receives the property and (typically) sells it tax-free as a §501(c)(3) entity. Compare to a 1031 followed by a charitable contribution at death (which also works but loses the lifetime deduction). For older clients with strong charitable intent, the direct contribution is often optimal.

Common Decision-Tree Mistakes

1. Defaulting to 1031 without testing the alternatives. 1031 is structurally optimal in many cases but not all. QOZ, §453, §721, and direct charitable gifts each have scenarios where they are superior.
2. Confusing QOZ deferral with QOZ exclusion. The 5-year QOZ deferral defers gain; the 10-year QOZ hold excludes new appreciation on the QOZ investment. These are two different benefits with different requirements.
3. Overlooking the California Form 3840 clawback. California-resident clients 1031‑ing into out-of-state property defer federal tax but accumulate a permanent California reporting obligation.
4. Failing to flag the Q4 sale Form 4868 issue. Sales closing in October, November, or December trigger the tax-return-deadline trap on the 180-day rule. File Form 4868 in early March of the following year.
5. Recommending DST without verifying the sponsor. DST sponsors vary widely. Independent diligence on the specific sponsor and properties is essential before recommendation.
6. Treating §721 UPREIT as a generic option. Few REITs accept §721 contributions. The structure requires negotiation with a specific REIT and is not available off the shelf.
7. Missing the related-party rules. Family transfers and entity transactions can violate IRC §267(b) and §707(b) related-party rules. Verify before recommending.

What Happens Next

Once the seven questions are answered and the structure is identified, the next 14 days are critical. The CPA’s job becomes:

• For 1031: Engage a qualified intermediary, introduce the broker for replacement property representation (Investment Grade represents 1031 buyers nationally on a cooperating-commission basis), confirm replacement property criteria, prepare the Form 8824 documentation pipeline.
• For QOZ: Identify a Qualified Opportunity Fund or sponsor, confirm the investment timing fits the 180-day window from sale to QOZ investment, prepare Form 8997 and Form 8949 documentation.
• For §453: Negotiate the installment note terms, confirm the buyer’s financial capacity, document the transaction with installment-sale-compliant agreements, prepare Form 6252 for each payment year.
• For §721: Identify the target REIT, negotiate the contribution agreement, prepare the structure documentation. This is typically a multi-month process.
• For direct charitable contribution: Confirm the receiving charity is qualified, obtain a qualified appraisal (Form 8283 for contributions over $5,000), document the transaction.

For 1031 specifically, the buyer-side broker engagement is the most time-sensitive piece because the 45-day identification window starts at the relinquished closing. Investment Grade Income Property, LP works directly with CPAs as a buyer-representation specialist. There is no fee charged to the CPA, and on the majority of transactions, no fee charged to the client (we are compensated by cooperating commission paid by the listing broker). For the relationship structure, see The Investment Grade CPA Partnership.

Frequently Asked Questions: Decision Tree for CPAs

Related Resources for CPAs

• The CPA’s Guide to Investment Grade 1031 Exchanges
• The Investment Grade CPA Partnership
• Investment Grade 1031 Exchange: The Complete 2026 Guide
• The 1031 Exchange 45-Day Rule
• The 1031 Exchange 180-Day Rule
• 1031 Exchange Deadline Calculator
• 1031 Exchange Into Bonus Depreciation NNN Properties
• Cost Segregation for NNN Properties
• Contact Investment Grade: CPA Partnership and Buyer Representation

This guide is a practitioner reference for tax professionals and is not a substitute for client-specific legal, tax, or investment advice. The structures discussed (1031, QOZ, §453, §721, charitable contribution) each have specific procedural requirements that must be confirmed for each client. Investment Grade Income Property, LP represents real estate buyers and is not a tax advisor, qualified intermediary, or law firm.

Worked Client Scenarios

Scenario A: The 65-Year-Old Apartment Owner

Client owns a 24-unit apartment building in Austin, Texas, purchased in 1998 for $1.2M. Current value $4.8M. Gain: $3.6M. Accumulated depreciation: $900K. Client is 65, recently widowed, exhausted by management, wants passive income.

Decision tree results:

• Q1: Investment real property. Yes.
• Q2: $3.6M gain. Yes, deferral matters.
• Q3: Top federal bracket likely; Texas has no state tax. Federal liability without deferral: ~$890K. (Recapture $225K + LT cap gains $540K + NIIT $137K).
• Q4: Wants to exit active management but stay in real estate.
• Q5: No liquidity need. Lives on other income.
• Q6: 65 years old, no plans to sell again. Estate planning oriented.
• Q7: Texas. No state tax. Clean.

Recommendation. 1031 into investment grade NNN. Identifies three NNN properties (target plus two backups) within 45 days. Closes within 180 days into a $4.8M Walmart NNN ground lease in suburban Texas. Defers $890K of federal tax. Receives passive 6.0% cap rate income (no management). At death, property passes to heirs at $4.8M+ stepped-up basis under IRC §1014; the $3.6M of deferred gain (including $900K of recapture) is eliminated. Federal estate tax exemption of $15M covers the entire portfolio.

Scenario B: The 45-Year-Old Looking to Fund a Business Expansion

Client owns a small office building in San Diego, California, purchased in 2010 for $1.8M. Current value $3.5M. Gain: $1.7M. Accumulated depreciation: $400K. Client is 45, runs a successful manufacturing business, wants $1M of cash to fund equipment purchases and reinvest the remaining proceeds.

Decision tree results:

• Q1: Investment real property. Yes.
• Q2: $1.7M gain. Yes.
• Q3: Top federal bracket; California 13.3%. Federal liability without deferral: ~$465K. California: ~$226K. All-in: ~$691K.
• Q4: Wants partial real estate exposure plus liquidity for the business.
• Q5: Needs $1M cash. Has $1.8M of basis to work with.
• Q6: 45 years old. Long horizon.
• Q7: California. Form 3840 clawback if 1031‑ing out of state.

Recommendation. Hybrid approach. The client puts $1.7M of gain into a Qualified Opportunity Zone fund (preserves the deferral, allows the basis to be retained as cash for the business). Of the $1.8M basis, $1M funds business equipment immediately and $800K is held in the business operating account. The $1.7M QOZ investment defers federal tax for five years with a 10% basis step-up at year five and full exclusion of new appreciation after a 10-year hold. California state tax is owed in the year of sale (California does not conform to QOZ for state tax purposes), so a $1.7M California liability of approximately $226K is due. Net: defers ~$465K federal indefinitely, receives $1M+ cash for the business, accepts the $226K California cost as the price of the structure.

Alternative considered: 1031 with $1M of cash boot. This works mechanically but the $1M boot creates approximately $200K of federal tax (taxable as gain). Less optimal than QOZ for this client because QOZ keeps the basis ($1.8M) as cash without triggering federal tax.

Scenario C: The Stock Sale Client (No Real Estate Gain)

Client sold a privately-held business in 2026 for $8M with a $7M long-term capital gain. The CPA wants to defer the gain.

Decision tree results:

• Q1: Not real property. Stock sale.
• 1031 is unavailable.

Recommendation. Qualified Opportunity Zone investment. The client invests the $7M gain in a Qualified Opportunity Fund within 180 days of the sale. Defers federal tax for five years with a 10% basis step-up at year five and full exclusion of any appreciation after a 10-year hold. The remaining $1M of basis is retained as cash. New OZ designations effective January 1, 2027 expand the eligible geography.

Scenario D: The Family Transfer with Seller Financing

Client owns a small commercial property and wants to sell it to her son for $1.5M. The son does not have full purchase financing available; the parent is willing to take back a 10-year seller note at 6% interest. Original basis $400K. Gain: $1.1M.

Decision tree results:

• Q1: Yes, real property.
• Q2: Yes, gain.
• Q4: Family transfer; the parent does not want a 1031.
• Q5: Liquidity need is the seller note payments over time.

Recommendation. Section 453 installment sale. Recognize the $1.1M gain pro-rata as payments are received over 10 years. Each payment is split between principal (taxable as gain at the gross profit ratio of 73%) and interest (taxable as ordinary income). The depreciation recapture portion is recognized in Year 1 regardless of installment terms, so the parent has some Year 1 recognition. The remaining gain spreads across the payment period.

Scenario E: The Charitable Gifting Client

Client owns a NNN property in Phoenix, Arizona, purchased 20 years ago for $800K. Current value $2.5M. Gain: $1.7M. Client is 78, has no children, and wants to leave a legacy to a university foundation.

Decision tree results:

• Q1: Yes, real property.
• Q2: Yes, large gain.
• Q4: Charitable intent.
• Q6: Estate planning oriented.

Recommendation. Direct charitable contribution of the property to the university foundation. Client receives a fair-market-value charitable deduction of $2.5M (subject to AGI limits, 30% of AGI for appreciated real property contributions, with five-year carryforward). The $1.7M gain is never recognized. The university foundation receives the property and (typically) sells it tax-free as a §501(c)(3) entity. Compare to a 1031 followed by a charitable contribution at death (which also works but loses the lifetime deduction). For older clients with strong charitable intent, the direct contribution is often optimal.

Common Decision-Tree Mistakes

1. Defaulting to 1031 without testing the alternatives. 1031 is structurally optimal in many cases but not all. QOZ, §453, §721, and direct charitable gifts each have scenarios where they are superior.
2. Confusing QOZ deferral with QOZ exclusion. The 5-year QOZ deferral defers gain; the 10-year QOZ hold excludes new appreciation on the QOZ investment. These are two different benefits with different requirements.
3. Overlooking the California Form 3840 clawback. California-resident clients 1031‑ing into out-of-state property defer federal tax but accumulate a permanent California reporting obligation.
4. Failing to flag the Q4 sale Form 4868 issue. Sales closing in October, November, or December trigger the tax-return-deadline trap on the 180-day rule. File Form 4868 in early March of the following year.
5. Recommending DST without verifying the sponsor. DST sponsors vary widely. Independent diligence on the specific sponsor and properties is essential before recommendation.
6. Treating §721 UPREIT as a generic option. Few REITs accept §721 contributions. The structure requires negotiation with a specific REIT and is not available off the shelf.
7. Missing the related-party rules. Family transfers and entity transactions can violate IRC §267(b) and §707(b) related-party rules. Verify before recommending.

What Happens Next

Once the seven questions are answered and the structure is identified, the next 14 days are critical. The CPA’s job becomes:

• For 1031: Engage a qualified intermediary, introduce the broker for replacement property representation (Investment Grade represents 1031 buyers nationally on a cooperating-commission basis), confirm replacement property criteria, prepare the Form 8824 documentation pipeline.
• For QOZ: Identify a Qualified Opportunity Fund or sponsor, confirm the investment timing fits the 180-day window from sale to QOZ investment, prepare Form 8997 and Form 8949 documentation.
• For §453: Negotiate the installment note terms, confirm the buyer’s financial capacity, document the transaction with installment-sale-compliant agreements, prepare Form 6252 for each payment year.
• For §721: Identify the target REIT, negotiate the contribution agreement, prepare the structure documentation. This is typically a multi-month process.
• For direct charitable contribution: Confirm the receiving charity is qualified, obtain a qualified appraisal (Form 8283 for contributions over $5,000), document the transaction.

For 1031 specifically, the buyer-side broker engagement is the most time-sensitive piece because the 45-day identification window starts at the relinquished closing. Investment Grade Income Property, LP works directly with CPAs as a buyer-representation specialist. There is no fee charged to the CPA, and on the majority of transactions, no fee charged to the client (we are compensated by cooperating commission paid by the listing broker). For the relationship structure, see The Investment Grade CPA Partnership.

Frequently Asked Questions: Decision Tree for CPAs

Related Resources for CPAs

• The CPA’s Guide to Investment Grade 1031 Exchanges
• The Investment Grade CPA Partnership
• Investment Grade 1031 Exchange: The Complete 2026 Guide
• The 1031 Exchange 45-Day Rule
• The 1031 Exchange 180-Day Rule
• 1031 Exchange Deadline Calculator
• 1031 Exchange Into Bonus Depreciation NNN Properties
• Cost Segregation for NNN Properties
• Contact Investment Grade: CPA Partnership and Buyer Representation

This guide is a practitioner reference for tax professionals and is not a substitute for client-specific legal, tax, or investment advice. The structures discussed (1031, QOZ, §453, §721, charitable contribution) each have specific procedural requirements that must be confirmed for each client. Investment Grade Income Property, LP represents real estate buyers and is not a tax advisor, qualified intermediary, or law firm.