The Oklahoma Bar Journal May 2026

attorneys, this article will provide only a brief overview and focus more directly on the often-over looked role of DSTs in §1031 exchanges. For a more detailed explanation of the requirements involved with §1031 exchanges, the reader is encouraged to review “The Basics of a 1031 Like-Kind Exchange” by J. Max Nowakowski. 3 Use of a Qualified Intermediary (QI) Though not explicitly stated within §1031, the exchanging party cannot take actual or construc tive receipt of the exchange pro ceeds upon closing on the sale of the property being relinquished; doing so would violate IRC §1001 and, thus, immediately disqual ify the exchange from obtaining tax deferral. 4 To avoid this fate,

the exchanging party uses a QI to take actual or constructive receipt of the exchange proceeds on the taxpayer’s behalf. 5 Thus, it’s

important to enlist and coordinate the services of a QI before proceed ing to close on the sale of the relinquished property.

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.

MAY 2026 | 25

THE OKLAHOMA BAR JOURNAL