Fees: What to Expect

1031 Solutions provides our clients complete transparency. Each and every DST we offer will be accompanied with a PPM, the equivalence of a prospectus, detailing all material information about the offering. An investor must use a licensed Registered Representative in order to invest in a DST. 1031 Solutions does not charge a fee for our services, however we are compensated by the DST, which pays a commission.


Choosing a Qualified Intermediary is an extremely important decision. Making sure they are fully bonded and insured Is also extremely Important. We will certainly provide you recommendations.

There are a number of highly experienced national and regional firms that provide QI services. Your exchange advisor can provide a list of experienced QIs upon request.

Approximate Fees for the Qualified Intermediary:

  • $1,200.00: this includes all recordkeeping needed for a compliant 1031 Exchange. This also includes the fee for the initial Exchange. This also includes any consultation needed with the QI Legal team.
  • $200.00: for each additional exchange, if you are using multiple replacement properties.


Any fees charged by a CPA or Attorney would be in addition to the qualified intermediary fee. We do have CPA’s & Attorneys that we can refer you to, and we also work with our client’s existing CPA’s, if need be.


Can I complete a 1031 exchange with a portion of my sale proceeds and cash out?

You can still do an exchange to defer a portion of the taxes that would otherwise be due on the sale of your relinquished property. The portion of proceeds which you do not choose to exchange is referred to as “cash boot” and becomes taxable at federal and state levels.

How are mortgages and debt handled?

Generally, if you have a mortgage on your property you must add additional cash to your purchase of replacement property equal to the amount of the mortgage, or take on an equal or greater amount of debt to replace it. If you do not add additional cash or replace your debt it is considered “mortgage boot” and is subject to capital gains taxes. It is possible for you to pay capital gains taxes on the mortgage boot and complete a partial 1031 exchange with the remainder to defer a portion of the capital gains taxes.

What taxes are involved in the sale of real estate?

It is best to consult your tax professional to calculate your individual taxes due. Generally speaking, your capital gain on the sale of real property is fully taxable at both federal and state levels. Typically, your capital gain is calculated by taking your sale price and subtracting your adjusted basis in the property and selling expenses.

  • Long-term federal capital gains – Up to 20%
  • State taxes – As high as 13% in some states
  • Depreciation recapture – 25% of utilized depreciation
  • Net investment income tax – 3.8%

If you have any questions regarding fees or professional recommendations please contact us.

Securities Offered through Arkadios Capital – Member FINRA/SIPC. Information available on third-party sites is for informational purposes only. There are risks associated with investing in real estate and Delaware Statutory Trust (DST) properties including, but not limited to, loss of entire investment principal, declining market values, tenant vacancies and illiquidity. Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million dollars exclusive of primary residence) and accredited entities only. If you are unsure if you are an accredited investor and/or an accredited entity please verify with your CPA and Attorney. The information herein has been prepared for educational purposes only and does not constitute an offer to purchase or sell securitized real estate investments. Because investors situations and objectives vary this information is not intended to indicate suitability for any particular investor. This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisers for advice/guidance regarding your particular situation.