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Exeter Empower – Volume 2, Issue 1

Exeter EMPOWER Newsletter
A Newsletter by The Exeter Group, LLC
Welcome to Exeter EMPOWER, your trusted source for expert guidance on 1031 exchanges, self-directed IRAs, self-directed individual 401(k) plans, title holding trusts, specialty holding escrows, and custody services.
In this edition:
• End of year tax planning tips when a 1031 exchange fails
• Safeguarding Your 1031 Exchange Funds
 
Year-End Tax Planning When a 1031 Exchange Fails
Now that we’ve reached 2026, savvy real estate investors need contingency plans, especially when a 1031 tax-deferred exchange doesn’t go as expected.
Why This Matters Now
• If you sell your relinquished property intending to complete a 1031 exchange, but fail to identify or acquire a replacement property within IRS deadlines, the transaction may no longer qualify for tax deferral.
• However, not all is lost. Under certain conditions, you may still defer recognition of capital gain taxes into the following tax year by leveraging Section 453 installment sale treatment.
• Important: Certain depreciation recapture taxes may not be deferrable, and might be recognized in the year of sale.
Key Considerations For Year-End Planning
Know your deadlines: If the relinquished property sale closes late in December, the 45-day identification period and 180-day acquisition deadline can push your taxable gain into the next tax year, potentially enabling installment sale treatment.
Review your 1031 exchange agreement language: Whether you have the legal right to access exchange funds (or benefits thereof) before year’s end can impact your ability to defer taxation.
Evaluate the viability of a partial exchange: Even if you can’t complete a full like-kind exchange, you may still defer part of the gain, depending on how much you “trade down” or if there’s leftover cash (boot).
Build your advisory team now: Avoid last-minute scrambling. Line up your real estate attorney, tax advisor, broker, and qualified intermediary well in advance.
Read Full Article Here
 
Safeguarding Your 1031 Exchange Funds
At Exeter, we treat the security of your investments as our top priority.
Exeter 1031 Exchange Services, LLC is one of the most safe, sound, and secure Qualified Intermediaries today. We chose to proactively go through a rigorous multi-year regulatory review and approval process to obtain a trust company charter and become a regulated entity to better protect clients’ 1031 Exchange funds.
Exeter Trust Company is licensed, regulated, and audited by the Wyoming Division of Banking. Exeter 1031 deposits, holds, and safeguards clients’ 1031 Exchange funds in separate, segregated Qualified Trust Accounts with Exeter Trust Company to better protect clients.
Choosing the Right Qualified Intermediary
 
What is The Exeter Group of Companies?
The Exeter Group of Companies provides expert solutions in:
Exeter 20 Year Mark
• 1031 Tax-Deferred Exchanges
• Self-Directed IRAs and Individual
401(k) Plans
• Title Holding Trusts (Land Trusts)
• Specialty Holding Escrows
• Custody Services
Led by industry veterans William L. Exeter, Maureen H. Brown and Brett L. Davis, we offer education, strategic insights, and white-glove service to help investors grow and protect their wealth.
 
Contact Our Experts
 
Thank you for reading Exeter EMPOWER!
Stay tuned for more insights coming your way soon. If you have any questions or comments, please reach out to us!
Contact Us
Subscribe to the Exeter EMPOWER Newsletter HERE and don’t miss out!
Picture of William “Bill” L. Exeter

William “Bill” L. Exeter

Founder and Chief Executive Officer of The Exeter Group of Companies and a long-time leader in 1031 exchanges, qualified trust accounts for 1031 exchanges, self-directed IRAs, self-directed individual 401(k) plans, custody services for retirement plans, private fund custody services, directed administrative trustee services, non-traditional investments or alternative investments, specialty holding escrows and title holding trusts (land trusts). He has spent his career helping individual, corporate, and institutional real estate investors and their advisors navigate complex tax-deferred transactions with clarity, care, and a strong focus on protecting client assets. Bill is known for his practical, plain-English approach to education and his belief that investors deserve transparency, responsiveness, and trust at every step of the process.
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