Can I use a 1031 exchange to invest in senior housing?
Direct answer
Yes. Senior housing real estate qualifies as replacement property in a 1031 exchange, so you can move proceeds from another investment property into assisted living, memory care or skilled nursing. You can buy an operating community or a property leased to an operator.
What to know
The exchange follows the standard deadlines. Engage a qualified intermediary before your relinquished property closes, identify replacement property within 45 days, and close within 180 days. The same taxpayer must be on both sides of the exchange, and any cash or reduced debt is taxable boot.
On the senior housing side, buyers generally choose between two structures. Buying an operating community gives you the real estate and the business together. Buying a triple-net leased property gives you the real estate with an operator paying rent, which suits investors who do not want to run a community. Accredited investors can also use fractional Delaware Statutory Trust interests, which are securities; Haven does not sell them.
This is general information, not tax, legal or investment advice. Talk to your CPA and attorney about your situation.
How Haven helps
Haven works with 1031 buyers regularly and can show you listed and confidential communities that fit your identification timeline. Read our 1031 exchange guide for senior housing.