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Listen "20. Can You 1031 Exchange Into A Syndication? (And Why It's Usually Not That Simple)"
Episode Synopsis
In this episode of the Major League Real Estate Podcast, Nathan Sosa and Matt Hamilton unpack one of the most complex topics in real estate investing: how 1031 exchanges interact with syndications and TIC (tenants-in-common) structures, and why it’s rarely as simple as investors think.
Nathan and Matt walk through:
- The key difference between a 1031 exchange and an investment into a syndication
- Why partnership interests don’t qualify for 1031 treatment (and what does)
- How TIC structures can allow investors to roll 1031 proceeds into a deal
- The IRS’s “if it quacks like a duck” rule and what it means for structuring ownership
- Common pitfalls when trying to 1031 into a fund or LLC
- The drop-and-swap strategy: how it works and why it’s full of gray areas
- What IRS guidance Revenue Procedure 2002-22 requires for a valid TIC structure
- Why getting both a CPA and a tax attorney involved early can save major headaches
- How syndicators can evaluate when a TIC arrangement actually makes sense
Nathan and Matt wrap up by emphasizing that while 1031 exchanges can be a powerful tool for real estate investors, combining them with partnerships or syndications demands expert guidance. Understanding these nuances helps operators close deals confidently, protect investors, and stay compliant with IRS rules.
Request a free discovery meeting: go.therealestatecpa.com/mlre
Subscribe to the REI Daily Newsletter: go.therealestatecpa.com/mlresubscriber
Get the Ultimate Guide for Real Estate Syndications: go.therealestatecpa.com/mlreultimateguide
Submit your questions to: [email protected]
The Major League Real Estate podcast is for general information purposes only and is not intended to provide, and should not be relied on for, tax, legal, investing, financial, or accounting advice. Information on the podcast may not constitute the most up-to-date legal or other information. No reader, user, or listener of this podcast should act or refrain from acting on the basis of information on this podcast without first seeking legal and tax advice from counsel in the relevant jurisdiction. Only your individual attorney and tax advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this podcast or any of the links or resources contained or mentioned within the podcast show and show notes do not create a relationship between the reader, user, or listener and podcast hosts, contributors, or guests. Any mention of third-party vendors, products, or services does not constitute an endorsement or recommendation. You should conduct your own due diligence before engaging with any vendor.
Nathan and Matt walk through:
- The key difference between a 1031 exchange and an investment into a syndication
- Why partnership interests don’t qualify for 1031 treatment (and what does)
- How TIC structures can allow investors to roll 1031 proceeds into a deal
- The IRS’s “if it quacks like a duck” rule and what it means for structuring ownership
- Common pitfalls when trying to 1031 into a fund or LLC
- The drop-and-swap strategy: how it works and why it’s full of gray areas
- What IRS guidance Revenue Procedure 2002-22 requires for a valid TIC structure
- Why getting both a CPA and a tax attorney involved early can save major headaches
- How syndicators can evaluate when a TIC arrangement actually makes sense
Nathan and Matt wrap up by emphasizing that while 1031 exchanges can be a powerful tool for real estate investors, combining them with partnerships or syndications demands expert guidance. Understanding these nuances helps operators close deals confidently, protect investors, and stay compliant with IRS rules.
Request a free discovery meeting: go.therealestatecpa.com/mlre
Subscribe to the REI Daily Newsletter: go.therealestatecpa.com/mlresubscriber
Get the Ultimate Guide for Real Estate Syndications: go.therealestatecpa.com/mlreultimateguide
Submit your questions to: [email protected]
The Major League Real Estate podcast is for general information purposes only and is not intended to provide, and should not be relied on for, tax, legal, investing, financial, or accounting advice. Information on the podcast may not constitute the most up-to-date legal or other information. No reader, user, or listener of this podcast should act or refrain from acting on the basis of information on this podcast without first seeking legal and tax advice from counsel in the relevant jurisdiction. Only your individual attorney and tax advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this podcast or any of the links or resources contained or mentioned within the podcast show and show notes do not create a relationship between the reader, user, or listener and podcast hosts, contributors, or guests. Any mention of third-party vendors, products, or services does not constitute an endorsement or recommendation. You should conduct your own due diligence before engaging with any vendor.
More episodes of the podcast Major League Real Estate Podcast
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20/11/2025
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13/11/2025
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