Why it matters on Oʻahu
Oʻahu has seen long‑term appreciation across condos and single‑family homes. If you sell, you could face capital gains taxes, depreciation recapture, and state taxes. A 1031 exchange lets you defer those taxes by reinvesting into a like‑kind investment property—keeping more equity working for you.
How a 1031 works (in brief)
- You sell investment property and direct proceeds to a Qualified Intermediary (QI)—never to yourself. BridgeWise Group can connect you with our local QI.
- You have 45 days to identify the replacement property and 180 days from the sale to close.
- The replacement must be equal to or greater value to fully defer taxes (including debt).
Example
A Honolulu condo purchased for $400k sells for $800k. By exchanging into a $1.0M replacement (or multiple) properties, the investor's clear benefit is that they defer taxes and upgrade into higher income potential—possibly even national DST portfolios that reduce hands‑on management.
Fit checks & risks
1031s require precision on timelines and debt replacement. Market inventory on Oʻahu can be tight—a backup like DSTs can keep the exchange on track.
Ready to explore your options? Schedule a 15‑minute consult with BridgeWise Group to map your 1031/DST path.
Disclaimer: Educational content only—not tax, legal, or investment advice. Consult your CPA, attorney, and a licensed advisor.
