JUNE 2024 | 45 THE OKLAHOMA BAR JOURNAL Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff. properties or vice versa.14 This means clients can expand from lower to higher property values or from one asset class to another. Clients may wish to explore other tax-deferral strategies in addition to the 1031 exchange. Consider two strong alternatives: the Deferred Sales Trust, discussed by attorney Dawn D. Hallman in the February 2019 Oklahoma Bar Journal, or the Delaware Statutory Trust, which can help exchangers quickly place QI-held funds into pooled real estate investments if time is running out for a successful 1031 exchange.15 CONCLUSION Property valuations in the state have increased quickly as of late, meaning more property owners have equity that will be subject to capital gains tax in an eventual sale. The need for a working knowledge of 1031 exchanges may prove to be increasingly important for Oklahoma attorneys in the coming years. ABOUT THE AUTHOR J. Max Nowakowski is the principal attorney and founder of Avenue Legal Group, a full-service firm focused on real estate transactions and disputes, estate planning, probate and business matters. Mr. Nowakowski represents clients in 1031 exchanges across Oklahoma and serves as local counsel for clients and firms outside the state. ENDNOTES 1. All section references contained herein are to the Internal Revenue Code of 1986, as amended (the “Code”), unless otherwise indicated. 2. Section 1031(a)(1). See also Treas. Reg. §1.1031(a)-1. 3. www.irs.gov/forms-pubs/about-form-8824. 4. https://bit.ly/4baRery. 5. Treas. Reg. §1.1031(b)-2. 6. Treas. Reg. §1.1031(k)-1. 7. IRS Fact Sheet No. FS-2008-18. 8. Rev. Proc. 2022-43. 2022-52 I.R.B. 570. 9. Treas. Reg. §1.1031(k)-1(4). See also Section 1031(a)(3)(A). 10. Section 1031(a)(3)(B). 11. IRS Fact Sheet No. FS-2008-18. 12. Section 1031(h). See also 26 CFR §1.1031(a)-1(b) and (c). 13. Treas. Reg. §1.1031(a)-3(a). 14. Treas. Reg. §1.1031(j)-1. 15. https://bit.ly/3y4gO2C.
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