721 Exchange
Contributing property or a DST interest to a REIT's operating partnership in exchange for partnership units under Section 721. Future 1031 exchanges are no longer possible.
Nashional Investments · Updated October 2026
Educational definition only, not investment, tax or legal advice.
In practice
In a 1031 exchange, small details decide whether the full gain is deferred: the identification deadline, the value and debt you replace, and who holds the sale proceeds. The term 721 Exchange comes up when we review an exchange or a Delaware Statutory Trust offering with a client. We read the offering memorandum, check the sponsor's track record and fees, and confirm the replacement fits the exchange rules before anything closes.
Common questions.
What does the term 721 Exchange mean?
Why does 721 Exchange matter for investors?
See how this fits into a real plan on our 1031 exchanges and DSTs page.
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