---
title: How to Change Ownership of a 1031 Exchange Property
description: Changing the ownership of a property involved in a 1031 exchange can create some significant complexities. Learn about them in this blog post.
image: https://www2.1031dst.com/hubfs/1031%20Between%20States.png
---
[(844-437-8103)](tel:8444378103)
-
-
- [Sign In](https://www.1031dst.com/sign-in/)
- [Browse Properties](https://www.1031dst.com/property-listings-directory/)
[](https://www.1031dst.com/)
- [Our Process](https://www.1031dst.com/our-process/)
- [About Us](https://www.1031dst.com/about/)
- [Sponsors](https://www.1031dst.com/sponsor/)
- Exchanges
- [1031 Exchange](https://www2.1031dst.com/a-guide-to-your-1031-exchange)
- [1033 Exchange](https://www2.1031dst.com/1033-exchange)
- [Delaware Statutory Trusts](https://www2.1031dst.com/abcs-of-dsts)
- [Opportunity Zones](https://www2.1031dst.com/opportunity-zones)
- [Glossary](https://www.1031dst.com/glossary/)
- [Properties](https://www.1031dst.com/property-listings-directory/)
- [Resources](https://www2.1031dst.com/resources)
- [Insights](https://www2.1031dst.com/insights)
- [Events](https://www.1031dst.com/events/)
- [Contact Us](https://www.1031dst.com/contacts/)
- [Our Process](https://www.1031dst.com/our-process/)
- [About Us](https://www.1031dst.com/about/)
- [Sponsors](https://www.1031dst.com/sponsor/)
- Exchanges
- [1031 Exchange](https://www2.1031dst.com/a-guide-to-your-1031-exchange)
- [1033 Exchange](https://www2.1031dst.com/1033-exchange)
- [Delaware Statutory Trusts](https://www2.1031dst.com/abcs-of-dsts)
- [Opportunity Zones](https://www2.1031dst.com/opportunity-zones)
- [Glossary](https://www.1031dst.com/glossary/)
- [Properties](https://www.1031dst.com/property-listings-directory/)
- [Resources](https://www2.1031dst.com/resources)
- [Insights](https://www2.1031dst.com/insights)
- [Events](https://www.1031dst.com/events/)
- [Contact Us](https://www.1031dst.com/contacts/)
- [Browse Properties](https://www.1031dst.com/property-listings-directory/)
- [Sign In](https://www.1031dst.com/sign-in/)
# Fortitude's Insights
[1031 Exchange](https://www2.1031dst.com/insights/topic/1031-exchange)
# [How to Change Ownership of a 1031 Exchange Property](https://www2.1031dst.com/insights/how-to-change-ownership-of-a-1031-exchange-property)
By [Daniel Raupp](https://www2.1031dst.com/insights/author/daniel-raupp) | 18, May 2023
[READ NOW](https://www2.1031dst.com/insights/how-to-change-ownership-of-a-1031-exchange-property)
[](https://www2.1031dst.com/insights/author/daniel-raupp)
[Daniel Raupp](https://www2.1031dst.com/insights/author/daniel-raupp)
Tags: [1031 Exchange](https://www2.1031dst.com/insights/topic/1031-exchange)
For investors planning to sell a rental property, a 1031 exchange offers the opportunity to defer capital gains taxes and depreciation recapture by reinvesting the funds into one or more new replacement properties. However, to complete this transaction successfully, it’s critical to carefully follow all of the rules and deadlines set forth by the Internal Revenue Service (IRS) and explained in section 1031 of the Internal Revenue Code.
Occasionally, we speak to investors who want to know whether they can change ownership of a property shortly before or after a [1031 exchange](https://www2.1031dst.com/a-guide-to-your-1031-exchange-3). While this may be acceptable in some cases, there are circumstances that could cause the exchange to be disqualified – potentially leaving you with a big tax bill. Here’s a look at some of the important factors to consider.
## **Intention **
To qualify for a 1031 exchange, both the relinquished property and the replacement property must be “held for business, investment, or productive use in a trade.” While you may have a legitimate reason for wanting to change property ownership, if it’s done too soon, the IRS may determine that you did not intend to hold the property for business or investment purposes. If the IRS believes you engaged in a 1031 exchange for the purpose of tax avoidance. it may be disqualified.
## **Title**
Under IRS rules, to successfully complete a 1031 exchange, the same taxpayer who sold the relinquished property must purchase the replacement property. In addition, the title must match exactly. For example, if you held the first property in the name of your LLC, you cannot purchase the second one under your personal name or add your spouse to the title.
If your lender requires you to add your spouse to the title, be sure to document the request so you can prove that the change was required and was made for financing reasons, rather than to avoid tax liability.
## **Timing**
There are no written rules that state a minimum holding period for relinquished properties. However, the IRS has issued safe harbor guidelines that define a “qualifying use” period. The guidelines state that investors must hold a property for at least two years before engaging in a 1031 exchange.
The holding period for [replacement properties](https://www2.1031dst.com/insights/identifying-properties-in-a-1031-exchange) is also not specifically defined. However, experts typically recommend holding a property for at least one to two years before changing ownership.
## **The Bottom Line**
Changing the ownership of a property involved in a 1031 exchange can create some significant complexities. Depending on the timing of the change, you may run the risk of having the entire exchange disqualified.
If you must make a change before the one-to-two-year recommended holding period, it’s important to consult with tax, legal, and financial professionals and engage a [qualified intermediary (QI)](https://www2.1031dst.com/insights/how-to-utilize-qualified-opportunity-zone-investments-with-your-clients) to facilitate your transaction. To learn more about 1031 exchanges and whether this type of transaction may help you reach your financial goals, [contact our team](https://www.1031dst.com/contacts/) for a consultation.
[](https://cta-redirect.hubspot.com/cta/redirect/4583849/b49a1e65-8367-48aa-91a8-d4f0468aa01a)
# [Daniel Raupp](https://www2.1031dst.com/insights/author/daniel-raupp)
Under Daniel Raupp's guidance since 2000, Fortitude Investment Group, LLC has guided clients into over $1 billion worth of securitized real estate investment offerings directly and indirectly, in both the DSTs for 1031 Exchanges and REITs. In the areas of real estate, tax advantaged investments, insurance, retirement, and estate planning, he is able to set up comprehensive, individually tailored client portfolios designed to help remove market volatility and maximize income potential without undue risk.
Inspired by his father’s dedication to customer service and hard work, Daniel directs a range of strategic initiatives in the firm to successfully leverage core competencies in real estate consulting, tax efficient investing, alternative investments, and operational excellence to create customer value. His credentials include a Series 7 General Securities Representative (GS) License, Series 24 Principal of General Representatives License, Series 63 Uniform Securities Agent License, and a Life/Accident and Health Agent License. [Check Daniel’s background on FINRA’s BrokerCheck.](https://brokercheck.finra.org/Individual/Summary/4079107)
This is for informational purposes only and is not an offer to buy/sell an investment. There are risks associated with investing in Delaware Statutory Trust (DST) and real estate investment properties including, but not limited to, loss of entire principal, declining market value, tenant vacancies and illiquidity. Diversification does not guarantee profits or guarantee protection against losses. Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. Because investors situations and objectives vary this information is not intended to indicate suitability for any particular investor. This information is not meant to be interpreted as tax or legal advice. Please speak with your legal and tax advisors for guidance regarding your particular situation.
Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services offered through Concorde Asset Management, LLC (CAM), an SEC registered investment adviser. Insurance products offered through Concorde Insurance Agency, Inc. (CIA) Fortitude Investment Group is independent of CIS, CAM, and CIA.
### Subscribe To Our Blog
Thanks for submission!!
- Recent
- Popular
### Posts by Topic
- [1031 Exchange (119)](https://www2.1031dst.com/insights/tag/1031-exchange)
- [DST (56)](https://www2.1031dst.com/insights/tag/dst)
- [Delaware Statutory Trust (22)](https://www2.1031dst.com/insights/tag/delaware-statutory-trust)
- [Opportunity Zones (16)](https://www2.1031dst.com/insights/tag/opportunity-zones)
- [1031 (14)](https://www2.1031dst.com/insights/tag/1031)
- [Taxes (14)](https://www2.1031dst.com/insights/tag/taxes)
- [Real Estate Investing (9)](https://www2.1031dst.com/insights/tag/real-estate-investing)
- [1033 Exchange (8)](https://www2.1031dst.com/insights/tag/1033-exchange)
- [Covid-19 (8)](https://www2.1031dst.com/insights/tag/covid-19)
- [Estate Planning (7)](https://www2.1031dst.com/insights/tag/estate-planning)
- [1031 Exchange Deadlines (6)](https://www2.1031dst.com/insights/tag/1031-exchange-deadlines)
- [Landlords (6)](https://www2.1031dst.com/insights/tag/landlords)
- [Real Estate (6)](https://www2.1031dst.com/insights/tag/real-estate)
- [1031 Delaware Statutory Trust (5)](https://www2.1031dst.com/insights/tag/1031-delaware-statutory-trust)
- [1031 replacement property (5)](https://www2.1031dst.com/insights/tag/1031-replacement-property)
- [721 Exchange (5)](https://www2.1031dst.com/insights/tag/721-exchange)
- [Capital Gains (5)](https://www2.1031dst.com/insights/tag/capital-gains)
- [Private Real Estate (5)](https://www2.1031dst.com/insights/tag/private-real-estate)
- [Tax Relief (5)](https://www2.1031dst.com/insights/tag/tax-relief)
- [NYC Real Estate (4)](https://www2.1031dst.com/insights/tag/nyc-real-estate)
- [Private Placements (4)](https://www2.1031dst.com/insights/tag/private-placements)
- [2020 Election (3)](https://www2.1031dst.com/insights/tag/2020-election)
- [Biden (3)](https://www2.1031dst.com/insights/tag/biden)
- [Fortitude (3)](https://www2.1031dst.com/insights/tag/fortitude)
- [Inflation (3)](https://www2.1031dst.com/insights/tag/inflation)
- [Interest Rates (3)](https://www2.1031dst.com/insights/tag/interest-rates)
- [Investments (3)](https://www2.1031dst.com/insights/tag/investments)
- [PIG/PAL (3)](https://www2.1031dst.com/insights/tag/pig-pal)
- [Boot (2)](https://www2.1031dst.com/insights/tag/boot)
- [Case Study (2)](https://www2.1031dst.com/insights/tag/case-study)
- [DST Sponsor (2)](https://www2.1031dst.com/insights/tag/dst-sponsor)
- [Depreciation Recapture (2)](https://www2.1031dst.com/insights/tag/depreciation-recapture)
- [Disaster Relief (2)](https://www2.1031dst.com/insights/tag/disaster-relief)
- [Multiple Owner Real Estate (2)](https://www2.1031dst.com/insights/tag/multiple-owner-real-estate)
- [Qualified Intermediary (2)](https://www2.1031dst.com/insights/tag/qualified-intermediary)
- [REIT (2)](https://www2.1031dst.com/insights/tag/reit)
- [Renter Protection Laws (2)](https://www2.1031dst.com/insights/tag/renter-protection-laws)
- [Retirement (2)](https://www2.1031dst.com/insights/tag/retirement)
- [1031 Delaware Statutory Trust Knowledge (1)](https://www2.1031dst.com/insights/tag/1031-delaware-statutory-trust-knowledge)
- [1033 (1)](https://www2.1031dst.com/insights/tag/1033)
- [Alternative Investments (1)](https://www2.1031dst.com/insights/tag/alternative-investments)
- [Commercial Real Estate Transactions (1)](https://www2.1031dst.com/insights/tag/commercial-real-estate-transactions)
- [Diversification (1)](https://www2.1031dst.com/insights/tag/diversification)
- [Due Diligence (1)](https://www2.1031dst.com/insights/tag/due-diligence)
- [FIRPTA (1)](https://www2.1031dst.com/insights/tag/firpta)
- [IRC 2704 (1)](https://www2.1031dst.com/insights/tag/irc-2704)
- [IRS (1)](https://www2.1031dst.com/insights/tag/irs)
- [Insurance (1)](https://www2.1031dst.com/insights/tag/insurance)
- [Long-Term Care (1)](https://www2.1031dst.com/insights/tag/long-term-care)
- [Multifamily Real Estate (1)](https://www2.1031dst.com/insights/tag/multifamily-real-estate)
- [Net Lease Investments (1)](https://www2.1031dst.com/insights/tag/net-lease-investments)
- [Passive Income (1)](https://www2.1031dst.com/insights/tag/passive-income)
- [Property Regulations (1)](https://www2.1031dst.com/insights/tag/property-regulations)
- [Reverse 1031 Exchange (1)](https://www2.1031dst.com/insights/tag/reverse-1031-exchange)
- [Step-Up in Basis (1)](https://www2.1031dst.com/insights/tag/step-up-in-basis)
- [Tenant-In-Common (1)](https://www2.1031dst.com/insights/tag/tenant-in-common)
- [Triple Net Lease (1)](https://www2.1031dst.com/insights/tag/triple-net-lease)
[](https://cta-redirect.hubspot.com/cta/redirect/4583849/2e9f6bdd-d0be-40a4-abf5-0ce73c867952)
#### Let Us Know What You Thought about this Post.
Put your Comment Below.
[Previous Post](https://www2.1031dst.com/insights/update-on-bidens-federal-budget-proposal)
##### [Update on Biden’s Federal Budget Proposal](https://www2.1031dst.com/insights/update-on-bidens-federal-budget-proposal)
[Next Post](https://www2.1031dst.com/insights/some-insights-into-the-current-banking-turmoil)
##### [Some Insights into the Current Banking Turmoil](https://www2.1031dst.com/insights/some-insights-into-the-current-banking-turmoil)
### New York
- [(844-437-8103)](tel:8444378103)
- [1031@fortitudeinvestments.com](mailto:1031@fortitudeinvestments.com)
- [61 Route 25A Setauket, NY 11733](https://goo.gl/maps/bdbvzDBiRZxGNmDa7)
### New Jersey
- [(844-437-8103)](tel:8444378103)
- [1031@fortitudeinvestments.com](mailto:1031@fortitudeinvestments.com)
- [101 Cedar Lane, Suite 101 Teaneck, NJ 07667](http://go.techbear.com/55072)
### Florida
- [(844-437-8103)](tel:8444378103)
- [1031@fortitudeinvestments.com](mailto:1031@fortitudeinvestments.com)
- [3801 PGA Blvd. Suite 600, Palm Beach Gardens, FL 33410](https://goo.gl/maps/e58XUSTQEX29dTyHA)
### California
- [(844-437-8103)](tel:8444378103)
- [1031@fortitudeinvestments.com](mailto:1031@fortitudeinvestments.com)
- [2950 Buskirk Avenue, Suite 300 Walnut Creek, CA 94597](http://go.techbear.com/ccb7e)
[](https://brokercheck.finra.org/)
This is for informational purposes only and is not an offer to buy/sell an investment. Pictures used are for illustration purposes only and are not current offerings. Future offerings will vary and may change at any time. The companies depicted in the photographs and listed herein may have proprietary interests in their names and trademarks. Nothing herein shall be considered an endorsement, recommendation, or offer to purchase by Fortitude Investment Group, CIS, CAM and CIA, or the investment vehicles they may offer of such depicted companies. Further, none of the companies are affiliated with Fortitude Investment Group, CIS, CAM and CIA in any manner. [Concorde Investment Services, LLC 19500 Victor Parkway, Suite 550, Livonia, MI 48152.](https://goo.gl/Wvki2W)
Securities offered through Concorde Investment Services, LLC (CIS), member [FINRA](http://www.finra.org/)/[SIPC](https://www.sipc.org/). Advisory services offered through Concorde Asset Management, LLC (CAM), an SEC registered investment adviser. Insurance products offered through Concorde Insurance Agency, Inc. (CIA) Fortitude Investment Group is independent of CIS, CAM, and CIA, all of whom are unaffiliated with third-party sites, cannot verify the accuracy of, nor assume responsibility for any content of linked third-party sites. Information available on third-party sites is for informational purposes only.
[Concorde's FORM CRS.](https://concordeis.com/formcrs.pdf)
DST Investments | 1031 Exchange Options – Fortitude Investment Group © 2026. [Privacy Policy](https://www.1031dst.com/investments/privacy-policy/)
```json
{
"@context" : "https://schema.org",
"@type" : "BlogPosting",
"author" : {
"@type" : "Person",
"name" : "Daniel Raupp",
"url" : "https://www2.1031dst.com/insights/author/daniel-raupp"
},
"dateModified" : "2023-05-18T13:15:00.394Z",
"datePublished" : "2023-05-18T13:15:00.000Z",
"headline" : "How to Change Ownership of a 1031 Exchange Property",
"image" : [ "https://www2.1031dst.com/hubfs/1031%20Between%20States.png" ],
"mainEntityOfPage" : {
"@id" : "https://www2.1031dst.com/insights/how-to-change-ownership-of-a-1031-exchange-property",
"@type" : "WebPage"
},
"publisher" : {
"@type" : "Organization",
"logo" : {
"@type" : "ImageObject",
"url" : "https://www2.1031dst.com/hubfs/Fortitude%20Investment%20Group%20Logo.jpg"
},
"name" : "Fortitude Investment Group llc."
}
}
```